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Guggenheim announces launch of two BulletShares corporate bond ETFs
By Wendy Van Sickle
Columbus, Ohio, Oct. 7 – Guggenheim Investments launched two new BulletShares exchange-traded funds, according to a Wednesday press release.
Guggenheim BulletShares 2023 High Yield Corporate Bond ETF and Guggenheim BulletShares 2025 Corporate Bond ETF are designed to help advisers and investors build bond laddering strategies consisting of investment-grade and high-yield ETFs with varying terms to maturity, according to the release.
“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 of ETF business development at Guggenheim Investments, 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 costs amid a volatile economic environment.”
BulletShares are designed to mature in a target year, enabling investors to ladder portfolios or to manage their fixed-income exposure within specific investment time frames. With maturity dates spanning from 2015 to 2025, BulletShares track indexes of about 30 to 300 corporate bonds with maturities in the same calendar year as each fund’s maturity, according to the release.
As bonds in a laddered portfolio mature, the cash distribution is generally used for 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. “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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