New High-Yield Corporate Bond ETFs

 |  Includes: BSJG, BSJH, BSJI
by: Tom Lydon

More providers are rolling out fixed-income ETFs designed to capitalize on investors' desire for yield.

Guggenheim Investments this week introduced several new specialized ETFs that focus on the U.S. high-yield corporate debt market, or "junk" bonds.

"BulletShares provide a cost-effective approach to bond laddering," William Belden, head of product development for Guggenheim Investments said. "Advisors are increasingly looking for ways to use high-yield corporate bonds to diversify their clients' portfolios, and these ETFs are a unique solution."

The three new funds are:

  • Guggenheim BulletShares 2016 High Yield Corporate Bond Fund (NYSEARCA:BSJG)
  • Guggenheim BulletShares 2017 High Yield Corporate Bond ETF (NYSEARCA:BSJH)
  • Guggenheim BulletShares 2018 Corporate Bond ETF (NYSEARCA:BSJI)

The latest three funds to launch now brings the providers fixed income product line up to 16. According to a press release, Guggenheim BulletShare ETFs recently surpassed $1 billion in total assets as of March 14, 2012.

Analysts say that the fundamental picture for high-yield bonds hasn't changed. As company balance sheets are looking healthy and investors continue to search for yield, the demand will be strong.

Rachel Koning Beals for US News reports that companies are aggressively refinancing their debt to improve their credit rating, due to this low-rate climate. In turn, this has boosted European investing demand for access to the much deeper U.S. bond market, including high-yield debt.

Tisha Guerrero contributed to this article.

Read the disclaimer; Tom Lydon is a board member of the funds for Guggenheim Investments.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.