When investing in an asset, it is always important to stay in full control. With this in mind, bond investors have been implementing laddered strategies to cover a broad swathe of maturity dates, and now, ETF investors can do the same with the Guggenheim BulletShares suite.
After the recent launch of three new high-yield corporate debt ETFs and three in the investment grade space, Guggenheim now offers nine ETFs in its investment grade line, with $630 million in assets under management, and seven junk bond ETFs, with $485 million in assets, writes Oliver Ludwig for IndexUniverse.
- Guggenheim BulletShares 2012 Corporate Bond ETF (BSCC)
- Guggenheim BulletShares 2013 Corporate Bond ETF (BSCD)
- Guggenheim BulletShares 2014 Corporate Bond ETF(BSCE)
- Guggenheim BulletShares 2015 Corporate Bond ETF (BSCF)
- Guggenheim BulletShares 2016 Corporate Bond ETF (BSCG)
- Guggenheim BulletShares 2017 Corporate Bond ETF (BSCH)
- Guggenheim BulletShares 2018 Corporate Bond ETF (BSCI)
- Guggenheim BulletShares 2019 Corporate Bond ETF (BSCJ)
- Guggenheim BulletShares 2020 Corporate Bond ETF (BSCK)
- Guggenheim BulletShares 2012 High Yield Corporate Bond ETF (BSJC)
- Guggenheim BulletShares 2013 High Yield Corporate Bond ETF (BSJD)
- Guggenheim BulletShares 2014 High Yield Corporate Bond ETF (BSJE)
- Guggenheim BulletShares 2015 High Yield Corporate Bond ETF (BSJF)
- Guggenheim BulletShares 2016 High Yield Corporate Bond Fund (BSJG)
- Guggenheim BulletShares 2017 High Yield Corporate Bond ETF (BSJH)
- Guggenheim BulletShares 2018 Corporate Bond ETF (BSJI)
Since these target-date-maturity bond ETFs mature like normal bonds, the funds help bond investors implement laddering strategies and manage interest rate risk.
The investment-grade ETFs, with maturities between 2012 to 2020, have an expense ratio of 0.24%. The junk bond ETFs, with maturities between 2012 to 2018, have an 0.42% expense ratio. While they are costlier than the average bond ETF, which don't have a maturity date, investors will know what to expect from these target-date bond ETFs during a rising interest rate environment.
Looking at the range of yields, investors can get 0.51% on the ETF expiring this year and 3.45% for the one expiring 2020. The yield-to-worst on the high-yield ETF expiring this year is 2.87%, and the one expiring in 2018 has a yield-to-worst of 6.44%.
Max Chen contributed to this article.
Read the disclaimer: Tom Lydon is a board member of the funds for Guggenheim Investments.