Guggenheim, the ninth-largest U.S. issuer of exchange-traded funds, added to its popular lineup of BulletShares target-date ETFs Wednesday with the debuts of two new products.
Those new ETFs are the Guggenheim BulletShares 2026 Corporate Bond ETF BSCQ and the Guggenheim BulletShares 2024 High Yield Corporate Bond ETF BSJO.
“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 at Guggenheim Investments, said in a press 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.”
Target-date ETFs, such as the BulletShares, family buy bonds that mature in the year in which the fund is scheduled to cease operating. So in the case of BSCQ, the bulk of its holdings mature in 2026. Likewise, BSJO's holdings mostly mature in 2024. Target-date ETF closures are not comparable to other ETF closures, most of which arrive because of slack volume and low assets, because the issuer is telling investors from the start that the shelf life of target-date ETF is finite.
Chicago-based Guggenheim now has 20 defined-maturity corporate bond ETFs with more than $7 billion in combined assets under management.
BSCQ holds 104 bonds with an average duration of 8.1 years. Nearly 46 percent of that new ETF's holdings are issued by banks. Nearly three-quarters of BSCQ's holdings are rated AA or A.
The Guggenheim BulletShares 2024 High Yield Corporate Bond ETF holds 135 high-yield corporate bonds with an average duration of just over three years. Telecom and technology issuers combine for 42 percent of the ETF's weight.
BSCQ charges 0.24 percent per year, while BSJO has an annual fee of 0.42 percent.
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