The Guggenheim Enhanced Core Bond ETF* (NYSE: GIY), seeks total return, comprised of income and capital appreciation. The Fund will normally invest at least 80% of its net assets in fixed income securities. The Fund’s investment strategy utilizes quantitative security selection, fundamental credit analysis and the Investment Adviser’s views of particular sectors to construct a portfolio through a process that employs a rigorous risk management framework. The Investment Adviser utilizes a quantitative strategy which attempts to identify relative mispricing among the instruments of a given asset class and estimate future returns which may arise from the eventual correction of the relative mispricing.
The Fund primarily invests in U.S. dollar-denominated investment grade debt securities, including U.S. Treasury securities and corporate bonds, rated Baa3 or higher by Moody’s Investors Service, Inc., also referred to as Moody’s, or equivalently rated by Standard & Poor’s Rating Group, commonly known as S&P, or Fitch Investor Services, referred to as Fitch, or, if unrated, determined by the Investment Adviser to be of comparable quality. The Fund may invest no more than 10% of its assets in high yield securities, commonly referred to as junk bonds, which are debt securities that are rated below investment grade by nationally recognized statistical rating organizations, or are unrated securities that the Investment Adviser believes are of comparable quality.
The Fund may invest, without limitation, in U.S. dollar-denominated debt securities of foreign issuers, including emerging market issuers. The Fund may also invest up to 10% of its assets in sovereign and corporate debt securities denominated in foreign currencies. The Fund may invest up to 10% of its assets in mortgage-backed securities (“MBS”) or in other asset-backed securities.
*Prior to June 1, 2011, the Fund's name was Claymore U.S. Capital Markets Bond ETF and the Fund sought to replicate an index called The Capital Markets Bond Index.
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