Invesco BulletShares 2031 Municipal Bond ETF

Invesco BulletShares 2031 Municipal Bond ETF (BSMV) holds investment-grade municipal bonds that are exempt from federal income tax and mature, or are expected to be repaid, in 2031. The fund itself is set to close on or about December 15, 2031 and pay out its assets in cash, which gives it an end date like a single bond. Its 0.18% expense ratio is a little above the 0.15% average of similar funds.

• Over the year to Oct 27, 2026, BSMV returned -0.7%, 7th of 8 among similar funds.
• Its 5-year annualized return was -1.1%.
• Its worst full calendar year was 2022 (-15.4%); its best was 2023 (+7.0%).
• The deepest fall in its price history was 20.7% (Dec 16, 2021 to Oct 25, 2022), not yet recovered.

As of Aug 31, 2026, the fund held 1,534 securities; the ten largest made up 3.96% of assets.

The bonds mature in 9.4 years on average (weighted by size), with an average coupon of 4.83%.

• Over the three months to Aug 31, 2026, investors added a net $10.4M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.45%, -1.32%, +0.22%.

BSMV tracks the Invesco BulletShares Municipal Bond 2031 Index, run by Invesco Indexing LLC, an affiliate of the fund's adviser. The index holds fixed-rate bonds from US states, local governments and territories that pay interest free of federal income tax and mature in 2031. For callable bonds, which issuers can repay early, the index may use the likely call year instead of the stated maturity. Each bond must be investment grade, meaning rated at least BBB- or Baa3, and have at least $15 million outstanding.

Bonds are weighted by market value (bigger issues count more), with each issuer capped at 5% at monthly rebalances. The index had 1,433 bonds as of October 31, 2025. The fund keeps at least 80% of its assets in index bonds but uses sampling, buying a representative subset. It generally holds bonds until they mature, are called or leave the index.

On or about December 15, 2031 (a date the board can change), the fund closes and pays out its net assets in cash, with no set amount promised. In the final year, the index stops adding bonds or rebalancing, and maturing proceeds go into cash, short-term notes and similar holdings, so the fund's yield drifts toward cash rates. It is not a target date fund that slowly turns more conservative.

• BSMV charges 0.18% a year, versus an average of 0.15% for the similar funds below (5th of 8, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $18 in the first year and $229 over 10 years (assuming a 5% annual return).

It pays monthly income meant to be free of federal income tax, from investment-grade municipal bonds, and it has a set 2031 end date.

BSMV may provide monthly income that is largely free of federal income tax. Because it ends in 2031, it can be matched to a known future expense. Its trailing 12-month yield was 2.94% as of October 27, 2026. The 0.18% expense ratio works out to $18 in the first year on $10,000 in the SEC's standard example. The fund launched in September 2021, so it has no record from 2008 or 2020. It lost 15% in 2022, its worst calendar year. Its deepest drop was 20.7%, from December 2021 to October 2022, and it had not fully recovered as of October 27, 2026. Anyone who had to sell in 2022 would have locked in that loss. Holding until the fund closes avoids a forced sale, but the final payout is not guaranteed. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by bond funds with the closest average maturity and issuer mix (N-PORT).