This Fund Dumped 2026 Bonds for 2031 — and BBB Exposure
Key Points
California-based Carmel Capital Partners exited its entire BSCQ stake in the third quarter, selling 300,704 shares for an estimated $5.9 million.
The transaction represented 2.5% of reportable 13F assets under management at quarter-end.
The move came as the firm dumped another short-term bond ETF and loaded up on one longer-term one.
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On Thursday, California-based Carmel Capital Partners disclosed in an SEC filing that it sold out its entire BSCQ position, an estimated $5.87 million trade.
What Happened
According to a regulatory filing released on Thursday, Carmel Capital Partners liquidated its full position in the Invesco BulletShares 2026 Corporate Bond ETF (NASDAQ:BSCQ) during the third quarter. The transaction involved selling 300,704 shares for an estimated $5.9 million. No BSCQ shares remain in the portfolio after this sale, per the filing.
What Else to Know
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, BSCQ shares were priced at $19.57, up 0.75% year-over-year.
ETF Overview
| Metric | Value |
|---|---|
| AUM | $4.2 billion |
| Price (as of market close Friday) | $19.57 |
| 1-year total return | 4.3% |
ETF Snapshot
- BSCQ's investment strategy focuses on tracking an index of U.S. dollar-denominated investment-grade corporate bonds maturing in 2026, aiming to provide a defined maturity profile for investors.
- The portfolio primarily consists of high-quality corporate bonds maturing or effectively maturing in 2026.
- The ETF is structured to be transparent and passively managed.
Invesco BulletShares 2026 Corporate Bond ETF (BSCQ) offers investors targeted exposure to a diversified basket of investment-grade corporate bonds maturing in 2026.
Foolish Take
Carmel Capital Partners’ complete exit from the Invesco BulletShares 2026 Corporate Bond ETF (NASDAQ: BSCQ) marks a clear shift toward longer-dated and higher-yielding corporate credit exposure. The move fits within a broader repositioning of Carmel’s fixed-income strategy. Alongside the BSCQ sale, the firm also dumped BSCR and added sizable stakes in the Invesco BulletShares 2031 Corporate Bond ETF (BSCV) and Eldridge’s BBB B-rated Corporate Credit ETF (CLOZ), signaling a tactical shift from near-term maturities to higher-yield, and more flexible, longer-duration holdings.
For long-term investors, Carmel’s rotation underscores how as short-term ETFs like BSCQ mature, reinvestment into longer horizons can lock in yields while balancing risk. With defined-maturity ETFs such as BSCV providing clarity on duration and cash flow, Carmel appears to be positioning for a softer rate environment ahead.
Glossary
13F assets under management (AUM): The total market value of securities reported by institutional investment managers in quarterly SEC 13F filings.
Liquidated: Sold off an entire investment position, converting holdings into cash.
Allocation: The percentage of a portfolio's total value assigned to a specific asset, sector, or investment.
Dividend yield: Annual dividends paid by an investment divided by its current price, shown as a percentage.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
Passively managed: An investment strategy aiming to replicate a market index rather than actively selecting securities.
Investment grade: Bonds rated as relatively low risk of default by credit rating agencies, typically BBB/Baa or higher.
Defined maturity profile: An investment approach where all holdings mature in or around a specific year, providing a set end date.
Transparent: Describes funds that fully disclose their holdings and investment strategies to investors.
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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.
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