Guggenheim expands high-yield BulletShares ETF line-up

Sep 29th, 2013 | By | Category: Fixed Income

Guggenheim Investments has added a further two funds to its popular range of defined-maturity “BulletShares” ETFs.

Guggenheim expands high-yield BulletShares ETF line-up

William Belden, Managing Director of Product Development at Guggenheim Investments.

Listed on the NYSE Arca, the newly listed Guggenheim BulletShares 2019 High Yield Corporate Bond ETF (BSJJ) and Guggenheim BulletShares 2020 High Yield Corporate Bond ETF (BSJK) provide exposure to high-yield corporate bonds with effective maturities of 2019 and 2020 respectively.

Launched in 2010, the Guggenheim BulletShares line-up consists of 18 unique defined-maturity corporate bond and high-yield corporate bond ETFs with maturity dates spanning from 2013 to 2022.

Unlike conventional fixed income ETFs, defined-maturity bond ETFs are designed to mature in their target year and combine the benefits of individual bonds – control of portfolio maturity, yield and credit quality – with the broad diversification, liquidity and convenience of ETFs.

The funds are particularly useful to investors seeking to implement date-sensitive investment strategies such as building a laddered bond portfolio, filling gaps in existing portfolios, obtaining year-specific yield-curve exposure and managing future cash flow needs.

William Belden, Managing Director, Product Development at Guggenheim Investments, said: “Our high-yield BulletShares offer investors a creative way to tap into the high-yield corner of the fixed income market by focusing on securities with a given maturity date. The defined-maturity feature continues to be a proven investment strategy for investors looking to save for life events like retirement amid a volatile economic environment.”

Year-to-date, the BulletShares product suite asset base has grown $1.9 billion through September 20, 2013, an increase of 107%. Overall, Guggenheim Investments’ total ETP assets under management are $16.5 billion (as of August 31, 2013), making it the eighth largest ETF provider in the US.

The funds each have an expense ratio of 0.42%.

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