This 4% Bond ETF Matures in 2026, Then Returns Your Principal
Briefly

This 4% Bond ETF Matures in 2026, Then Returns Your Principal
"Individual corporate bonds typically require $1,000 minimum purchases and leave retail investors stuck with whatever credit quality and maturity dates they can access through their broker. Invesco BulletShares 2026 Corporate Bond ETF ( NYSEARCA:BSCQ) solves this by packaging investment-grade corporate bonds with a defined 2026 maturity into a single ETF trading around $19.60 per share, delivering a 4.06% yield with monthly distributions."
"BSCQ functions as a pre-built bond ladder terminating December 15, 2026. The fund holds over 300 investment-grade corporate bonds from issuers including Wells Fargo ( NYSE:WFC), Microsoft ( NASDAQ:MSFT), Apple ( NASDAQ:AAPL), Boeing ( NYSE:BA), and AbbVie ( NYSE:ABBV). Each bond matures in 2026, when the fund liquidates and returns capital to shareholders. This eliminates the interest rate risk that devastated traditional bond funds during 2022-2023, when iShares iBoxx $ Investment Grade Corporate Bond ETF ( NYSEARCA:LQD) fell 2.76% over five years while 20-year Treasury funds collapsed more than 34%."
"BSCQ returned approximately 9% in 2025 combining 5% price appreciation with the 4% yield. Over five years, it gained 5.45% while LQD lost 2.76% and AGG declined 1.39%, demonstrating how the defined maturity structure protected investors during volatile rate environments. Monthly distributions have remained consistent, ranging between $0.059 and $0.071 per share over the past two years."
Invesco BulletShares 2026 Corporate Bond ETF packages over 300 investment-grade corporate bonds that all mature December 15, 2026, providing a defined-maturity, single-ticker bond ladder. The ETF trades near $19.60 per share, yields 4.06%, and pays monthly distributions while its price converges toward par as maturity approaches. The fund eliminates significant duration risk present in traditional bond funds and plans to liquidate and return capital at maturity. The 0.10% expense ratio approximates the cost of building a private ladder. Historical performance showed about 9% total return in 2025 and steady monthly payouts over two years.
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