BSMZ Breaks Through to a New 52-Week High Driven by $207.7 Million Institutional Inflow Amid Tax-Exempt Municipal Bond Demand

ETF Overview and Capital Flows

The Invesco BulletShares 2035 Municipal Bond ETF (BSMZ.O) tracks the Invesco BulletShares USD Municipal Bond 2035 Index, which focuses on tax-exempt municipal bonds maturing in 2035. The fund operates as a long-only, non-leveraged vehicle with an expense ratio of 0.18%. On January 6, 2026, BSMZ.O saw a net fund flow of $207.7 million from block orders, signaling institutional buying interest.

Peer ETF Snapshot

• AGG.P charges 0.03% in expenses and holds $136 billion in assets.
• AFIX.P has a 0.19% expense ratio and $178 million in AUM.
• AVIG.P offers a 0.15% expense ratio with $2 billion in assets.
• ACVT.P carries a 0.65% expense ratio and manages $28 million in AUM.

Opportunities and Structural Constraints

BSMZ.O’s low expense ratio positions it competitively against peers like AGG.P, which dominates the municipal bond space with a massive asset base. Crucially, its focus on a specific maturity cohort may limit diversification but aligns with strategies targeting predictable cash flows. Structural constraints include sensitivity to municipal bond supply dynamics and state-level credit conditions, which remain stable but lack immediate catalysts for broad-based outperformance.