Not all ETF closures are bad news. By design, Guggenheim BulletShares 2013 Corporate Bond ETF (NYSEARCA:BSCD) and Guggenheim BulletShares 2013 High Yield Corporate Bond ETF (NYSEARCA:BSJD) are scheduled to mature and liquidate on Dec. 31, 2013. Accordingly, Dec. 30 will be the last day of listed trading and the date used for the final distribution calculations.
Guggenheim BulletShares 2013 Corporate Bond ETF was launched under the Claymore brand in 2010. However, Guggenheim acquired Claymore, and the ETFs were rebranded later in 2010. Guggenheim BulletShares 2013 High Yield Corporate Bond ETF came to market in January 2011. The two funds have combined assets of about $385 million, and they were never in danger of being part of the ETF Deathwatch list.
Defined-maturity bond funds specify a maturity date when launched, and hold securities maturing in the 12 months prior to the stated date. This defined structure allows for a duration profile similar to an individual bond while providing the diversification benefits of a multi-security portfolio. Guggenheim offers BulletShares ETFs maturing in each calendar year through 2022 for the Corporate Bond series and through 2020 for the High Yield Corporate Bond series.
Disclosure: Long BulletShares High Yield Corporate Bond ETFs maturing in 2014, 2015, 2016, and 1017. No positions in any of the companies or ETF sponsors mentioned. No income, revenue, or other compensation (either directly or indirectly) received from, or on behalf of, any of the companies or ETF sponsors mentioned.