Guggenheim adds ‘bond laddering’ BulletShares ETFs with set maturities

By Susanna Moon

Chicago, Sept. 27 – Guggenheim Investments said it added two more BulletShares exchange-traded funds that provide “bond laddering strategies.”

Guggenheim launched the BulletShares 2026 Corporate Bond exchange-traded fund and Guggenheim BulletShares 2024 High Yield Corporate Bond exchange-traded fund.

The offerings consist of investment-grade and high-yield ETFs that have “varying terms to maturity,” according to a company press release.

BulletShares have maturity dates from 2017 to 2027 and track indexes of about 30 to 320 corporate bonds that effectively mature in the same calendar year as that of each fund, the release noted.

The specific maturities will help “to ladder portfolios or to manage their fixed-income exposure within specific investment time frames,” the release added.

The Guggenheim BulletShares were launched in 2010 and consists of 20 unique defined-maturity corporate bond and high-yield corporate bond ETFs with $9 billion of assets under management.

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

“If interest rates increase, an investor can reinvest the proceeds, if any, from maturing bonds at higher interest rates,” William Belden, managing director, head of ETF business development at Guggenheim Investments, said in the press 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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