On Thursday, California-based Carmel Capital Partners disclosed a new position in BSCV, acquiring 275,214 shares for an estimated $4.6 million in the third quarter.
What Happened
Carmel Capital Partners initiated a new stake in the Invesco BulletShares 2031 Corporate Bond ETF (BSCV 0.06%), acquiring approximately 275,214 shares in the third quarter. The estimated value of the trade was $4.6 million, based on the average share price for the period. The transaction was disclosed in a U.S. Securities and Exchange Commission (SEC) filing on Thursday.
What Else to Know
This was a new position, accounting for 1.9% of the fund’s $237.2 million reportable assets as of September 30.
Top holdings after the filing:
- NYSE:HD: $32.1 million (13.5% of AUM)
- NYSEMKT:USFR: $27.2 million (11.4% of AUM)
- NASDAQ:PLTR: $20.7 million (8.7% of AUM)
- NYSE:LEN: $12.6 million (5.3% of AUM)
- NYSEMKT:CLOZ: $5.7 million (2.4% of AUM)
As of Friday’s market close, BSCV shares were priced at $16.66, up 3% over the past year.
ETF Overview
| Metric | Value |
|---|---|
| AUM | $1.3 billion |
| Price (as of market close Friday) | $16.66 |
| Yield to maturity | 4.5% |
| 1-year total return | 5% |
ETF Snapshot
- BSCV’s investment strategy targets U.S. dollar-denominated investment grade corporate bonds maturing in 2031, seeking to track a rules-based index of such securities.
- The portfolio is composed primarily of investment-grade corporate bonds maturing in 2031, providing a defined maturity structure.
- The fund is structured as a non-diversified ETF with a targeted bond maturity profile.
Invesco BulletShares 2031 Corporate Bond ETF offers investors targeted exposure to investment-grade corporate bonds maturing in 2031, combining a defined maturity date with the liquidity and transparency of an exchange-traded fund.
Foolish Take
Carmel Capital Partners’ new stake in the Invesco BulletShares 2031 Corporate Bond ETF (NASDAQ: BSCV) signals a tactical pivot toward longer-duration, investment-grade credit exposure. The California-based fund bought 275,214 shares worth an estimated $4.6 million in the third quarter, according to an SEC filing. The position now accounts for about 1.9% of its $237 million in reportable assets.
The move comes as Carmel seemingly restructured its fixed-income portfolio—selling out of shorter-dated ETFs like BSCQ and BSCR while adding to Eldridge’s BBB B-rated corporate bond ETF (BBB). This pattern suggests a willingness to extend duration and assume slightly higher credit risk in pursuit of yield.
BSCV, which holds investment-grade corporate bonds maturing in 2031, offers defined-maturity exposure with a predictable return profile. For long-term investors, Carmel’s allocation underscores the appeal of structured bond ladders in today’s environment: combining income potential with the flexibility of ETFs. Ultimately, funds like BSCV could benefit from falling yields.
Glossary
ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding assets like stocks or bonds.
Investment grade: Bonds rated as relatively low risk of default by credit rating agencies.
Defined maturity: A set date when a bond or fund returns principal to investors.
Non-diversified ETF: A fund that may invest a larger portion of assets in fewer securities or sectors.
AUM (Assets Under Management): The total market value of assets a fund or firm manages on behalf of clients.
Dividend yield: Annual dividends paid by a security, expressed as a percentage of its price.
Total return: The investment’s price change plus all dividends and distributions, assuming those payouts are reinvested.
Trailing annual dividend yield: Dividend yield calculated using dividends paid over the past 12 months.
Rules-based index: An index constructed using a predetermined set of rules or criteria, not active selection.
Corporate bond: A debt security issued by a corporation to raise capital, paying interest to investors.
Position: The amount of a particular security or asset held by an investor or fund.
TTM: The 12-month period ending with the most recent quarterly report.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot, Lennar, and Palantir Technologies. The Motley Fool has a disclosure policy.
