What This Fund's $6 Million Exit from a 2027 Bond ETF Should Signal to Long-Term Investors

On Thursday, California-based Carmel Capital Partners disclosed that it fully exited its position in BSCR for an estimated $5.9 million during the third quarter.

What Happened

Carmel Capital Partners reported a complete sale of its holding in the Invesco BulletShares 2027 Corporate Bond ETF (NASDAQ:BSCR), eliminating its position of 301,243 shares. The transaction, estimated at approximately $5.9 million based on average pricing for the quarter, was disclosed in a regulatory filing on Thursday. The full filing is available here.

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, BSCR shares were priced at $19.70, up 1% over the past year.

ETF Overview

ETF Snapshot

• BSCR's investment strategy focuses on tracking a portfolio of U.S. dollar-denominated investment grade corporate bonds maturing in 2027, aiming to provide defined maturity exposure.
• The underlying holdings consist primarily of investment grade corporate bonds with maturities in 2027.
• The ETF offers investors access to a diversified basket of bonds with a fixed maturity year.

The Invesco BulletShares 2027 Corporate Bond ETF provides investors with targeted exposure to investment grade corporate bonds maturing in 2027. The fund is designed to appeal to investors seeking a defined maturity date and predictable cash flows.

Foolish Take

Carmel Capital Partners’ full exit from the Invesco BulletShares 2027 Corporate Bond ETF (NASDAQ: BSCR) marks the continuation of a measured rotation away from shorter-duration debt toward higher-yield and longer-maturity credit.

The move follows Carmel’s sale of BSCQ and new allocations to BSCV (2031 maturity) and Eldridge’s BBB B-rated Corporate Credit ETF, signaling a conviction that interest rates will continue to moderate gradually through 2026. With yields beginning to decline and the Fed shifting toward a more neutral stance, the firm appears to be locking in longer-term opportunities before spreads tighten further.

As with Carmel's other moves last quarter, this general rotation underscores how defined-maturity ETFs like BSCR can serve as part of a laddering strategy—redeployed strategically as market conditions shift. Carmel’s moves reflect a broader theme among bond investors: After years of rate volatility, capital is flowing into intermediate and longer credit as the outlook for fixed income brightens.

Glossary

13F reportable assets: Assets that institutional investment managers must disclose quarterly to the SEC, showing certain equity holdings.

Assets under management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.

Exchange-Traded Fund (ETF): An investment fund traded on stock exchanges, holding assets like stocks or bonds.

Dividend yield: Annual dividends paid by an investment, expressed as a percentage of its current price.

Investment grade: Bonds rated as relatively low risk of default by credit rating agencies, typically BBB- or higher.

Corporate bond: A debt security issued by a corporation to raise capital, paying interest to investors.

Defined maturity exposure: Investment strategy targeting securities that mature in a specific year, providing a known end date.

Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.

Regulatory filing: Official documents submitted to government agencies, often disclosing financial or operational information.