Latest BulletShares High-Yield Corporate Bond ETFs satisfy demand for longer maturity dates

By Toni Weeks

San Diego, April 25 - The BulletShares Exchange-Traded Funds suite has expanded with the launch of three new high-yield corporate bond exchange-traded funds, according to a press release by Guggenheim Investments.

The three ETFs, which mature in 2016, 2017 and 2018, respectively, add to the existing BulletShares lineup of four target maturity date high-yield corporate bond ETFs, which mature from 2012 to 2015. Two additional high-yield corporate bond ETFs, with maturities of 2019 and 2020, have been announced but not launched.

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

The new funds track indexes designed to replicate a held-to-maturity portfolio of dollar-denominated high-yield corporate bonds with a correlating effective maturity date. The indexes are provided by Accretive Asset Management.

"Advisers are using BulletShares ETFs to provide the benefits of liquidity and transparency, and we are committed to growing this suite," Belden continued. "We've found that there is strong demand for longer maturity dates to use in portfolio construction, so we're pleased to expand the lineup to meet their needs."

As previously announced, under normal conditions, each fund invests at least 80% of its net assets in component securities from its respective index. During the last year of operation, as the bonds mature, a fund's portfolio will transition to cash and cash equivalents, including U.S. Treasury bills and investment-grade commercial paper. Once each fund hits its target date, the funds' trust, Claymore Exchange-Traded Fund Trust, will make a cash distribution of net assets to shareholders and close down each ETF.

The ETFs and their respective indexes are as follows:

• The Guggenheim BulletShares 2016 High Yield Corporate Bond ETF, which trades under the symbol "BSJG," seeks investment results that correspond generally to the performance, before fees and expenses, of the BulletShares USD High Yield Corporate Bond 2016 Index;

• The Guggenheim BulletShares 2017 High Yield Corporate Bond ETF, which trades under the symbol "BSJH," seeks investment results that correspond generally to the performance, before fees and expenses, of the BulletShares USD High Yield Corporate Bond 2017 Index; and

• The Guggenheim BulletShares 2018 High Yield Corporate Bond ETF, which trades under the symbol "BSJI," seeks investment results that correspond generally to the performance, before fees and expenses, of the BulletShares USD High Yield Corporate Bond 2018 Index.

Saroj Kanuri serves as the portfolio manager for the funds. Kanuri is a director of ETF Portfolio Manager for Guggenheim Funds Investment Advisors, LLC, the funds' Lisle, Ill.-based investment adviser.

Total annual fund operating expenses for each fund are 0.42%, which consists solely of a 0.42% management fee.

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