Fixed Maturity Bond ETFs

[beachfire]

I have a question about fixed maturity Bond ETFs like the Invesco or Blackrock products in the links below.

Is there a way to better understand the estimated ETF price that would be considered “par value” at maturity. I realize the value at maturity is uncertain. But do they disclose what the ETF price was at initial launch? Would that be a proxy for expected approximate value at maturity? Trying to figure out if I buy one of these ETFs after they are initially launched, how I can gauge what kind of premium or discount they are trading at to an estimated value at maturity.

Thanks for any thoughts. Here are some example tickers for these products:

BSCN
BSCO
BSCP

IBTD
IBTE
IBTF


https://www.invesco.com/us/en/soluti...come-etfs.html

https://www.ishares.com/us/strategie...r-bond-ladders

 

[pb4uski]

This was recently addressed in another thread. I would look at the terminal distributions of tranches of the product from past years... so for BSCL, BSCK, BSCH, etc. For the Bulletshares, it has been about $21. For the issue price, you can look at the earliest NAV or trading value to get an idea... for the Bulletshares it has been ~$20 as I recall.

Or you could call them and ask.

I was thinking that one might be able to download the portfolio, sum the par values and cash and then divide that total by the number of shares outstanding, but I'm not totally sure that would work, but it might.

One thing that you should know about these things. The return in the maturity year tends to suck because as bonds mature from January onwards the proceeds are invested in short-term paper until the terminal distribution is made which have much lower yields and depress the interest received in the maturity year. I'm not sure why they don't just distribute the proceeds from maturities as they happen, but they don't. My workaround was to just sell out about a year before the terminal distribution.

 

[Out-to-Lunch]

Is there a way to better understand the estimated ETF price that would be considered “par value” at maturity.

This was recently addressed in another thread.

I decided to chase down that other thread for your convenience. But then, after chasing it down, I discovered that it was YOU who asked that same question in that other thread....

Anyway, here is my and pb4's answer again for the record: https://www.early-retirement.org/forums/f28/lets-talk-bond-funds-113113-3.html#post2740799

 

[pb4uski]

^^^ That sounds like DW... if she doesn't get the answer that she likes she keeps asking hoping for a different answer that is more to her liking. Drives me nuts.

 

[beachfire]

^^^ That sounds like DW... if she doesn't get the answer that she likes she keeps asking hoping for a different answer that is more to her liking. Drives me nuts.

What are you talking about?

The guy was nice enough to reply to my question, but ended with the point that he really did not know the details and that hopefully one of the folks more up to speed on these things would chime in. After, no further replies I posted the question over in this other forum where more detailed investment questions are addressed. You will see that did result in more detailed and really helpful responses. Has nothing to do with shopping for answers I like. Just looking for the most complete answer.

 

[Out-to-Lunch]

What are you talking about?

The guy was nice enough to reply to my question, but ended with the point that he really did not know the details and that hopefully one of the folks more up to speed on these things would chime in. After, no further replies I posted the question over in this other forum where more detailed investment questions are addressed. You will see that did result in more detailed and really helpful responses. Has nothing to do with shopping for answers I like. Just looking for the most complete answer.

I didn't really have a problem with it. I admit to having a bit of a headslap moment when I realized what the situation was!

 

[beachfire]

I didn't really have a problem with it. I admit to having a bit of a headslap moment when I realized what the situation was!

No problem. I do that all the time. Thanks