Guggenheim announces launch of two BulletShares corporate bond ETFs

By Tali Rackner

Norfolk, Va., Sept. 14 – Guggenheim Investments announced the launch of the BulletShares 2026 Corporate Bond exchange-traded fund and Guggenheim BulletShares 2024 High Yield Corporate Bond exchange-traded fund, according to a press release.

The ETFs are intended to help advisers and investors build bond laddering strategies consisting of investment-grade and high-yield ETFs with varying terms to maturity.

“Our investment-grade and high yield BulletShares offer investors a creative way to tap into the fixed- income market by focusing on securities with a given maturity date,” William Belden, managing director and head of ETF business development, said in the release.

“The defined-maturity feature continues to be an effective investment strategy for investors looking to save for life events like retirement and college amid a volatile economic environment.”

BulletShares are designed to mature in their target year, providing advisers and investors with specific maturities to ladder portfolios or to manage their fixed-income exposure within specific investment time frames. With maturity dates between 2016 and 2026, BulletShares track indexes of about 30 to 320 corporate bonds with effective maturities in the same calendar year as each fund’s maturity.

As bonds in a laddered portfolio mature, the cash distribution is generally used to cover lifestyle needs or reinvested in new bonds at the longest maturity of the ladder at the then current interest rate.

“If interest rates increase, an investor can reinvest the proceeds, if any, from maturing bonds at higher interest rates,” Belden said in the release.

“If interest rates decrease, the investor potentially benefits from price appreciation as the portfolio’s higher-yielding bonds increase in value.”

Guggenheim Funds Investment Advisors, LLC is the funds’ Lisle, Ill.-based investment adviser.

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