Guggenheim launches latest BulletShares High-Yield Corporate Bond ETFs

By Toni Weeks

San Luis Obispo, Calif., Sept. 24 - Guggenheim Investments announced in a press release that it has launched its latest two new BulletShares exchange-traded funds.

The new ETFs are the Guggenheim BulletShares 2019 High Yield Corporate Bond ETF (NYSE: BSJJ) and the Guggnheim BulletShares 2020 High Yield Corporate Bond ETF (NYSE: BSJK), both series of Claymore Exchange-Traded Fund Trust.

Launched in 2010, the Guggenheim BulletShares line-up now consists of 18 defined-maturity corporate bond and high-yield corporate bond ETFs with maturity dates spanning 2013 to 2022. Each ETF is designed to mature in its target year, providing investors with specific maturities to ladder portfolios and specific investment time frames with which to managed fixed-income exposure.

"Our high-yield BulletShares offer investors a creative way to tap into the high-yield corner of the fixed-income market by focusing on securities with a given maturity day," William Belden, managing director of product development at Guggenheim Investments, said in the release. "The defined-maturity feature continues to be a proven investment strategy for investors looking to save for life events like retirement amid a volatile economic environment."

As previously reported, the 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.

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, Claymore will make a cash distribution of net assets to shareholders and close down each ETF.

The 2019 ETF seeks investment results that correspond generally to the performance, before fees and expenses, of the BulletShares USD High Yield Corporate Bond 2019 index.

Likewise, the 2020 ETF seeks investment results that correspond generally to the performance, before fees and expenses, of the BulletShares USD High Yield Corporate Bond 2020 index.

Saroj Kanuri, Burak Hurmeydan and Jie Du serve as the portfolio managers for the funds.

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

According to the press release, the BulletShares product suite asset base has grown $1.9 billion through Sept. 20, a year-to-date increase of 107%.

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

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