Customizing Your Bond ETF Portfolio

tlydon@globaltrend.com (Tom Lydon)
May 15, 2012

When investing in an asset, it is always important to stay in full control. With this in mind, bond investors have been implementing laddered strategies to cover a broad swathe of maturity dates, and now, ETF investors can do the same with the Guggenheim BulletShares suite.

After the recent launch of three new high-yield corporate debt ETFs and three in the investment grade space, Guggenheim now offers nine ETFs in its investment grade line, with $630 million in assets under management, and seven junk bond ETFs, with $485 million in assets, writes Oliver Ludwig for IndexUniverse. [New High-Yield Corporate Bond ETFs]

  • Guggenheim BulletShares 2012 Corporate Bond ETF (BSCC - News)
  • Guggenheim BulletShares 2013 Corporate Bond ETF (BSCD - News)
  • Guggenheim BulletShares 2014 Corporate Bond ETF(BSCE - News)
  • Guggenheim BulletShares 2015 Corporate Bond ETF (BSCF - News)
  • Guggenheim BulletShares 2016 Corporate Bond ETF (BSCG - News)
  • Guggenheim BulletShares 2017 Corporate Bond ETF (BSCH - News)
  • Guggenheim BulletShares 2018 Corporate Bond ETF (BSCI - News)
  • Guggenheim BulletShares 2019 Corporate Bond ETF (BSCJ - News)
  • Guggenheim BulletShares 2020 Corporate Bond ETF (BSCK - News)
  • Guggenheim BulletShares 2012 High Yield Corporate Bond ETF (BSJC - News)
  • Guggenheim BulletShares 2013 High Yield Corporate Bond ETF (BSJD - News)
  • Guggenheim BulletShares 2014 High Yield Corporate Bond ETF (BSJE - News)
  • Guggenheim BulletShares 2015 High Yield Corporate Bond ETF (BSJF - News)
  • Guggenheim BulletShares 2016 High Yield Corporate Bond Fund (BSJG - News)
  • Guggenheim BulletShares 2017 High Yield Corporate Bond ETF (BSJH - News)
  • Guggenheim BulletShares 2018 Corporate Bond ETF (BSJI - News)

Since these target-date-maturity bond ETFs mature like normal bonds, the funds help bond investors implement laddering strategies and manage interest rate risk. [Guggenheim Adds Three More ETFs to BulletShares Suite]

The investment-grade ETFs, with maturities between 2012 to 2020, have an expense ratio of 0.24%. The junk bond ETFs, with maturities between 2012 to 2018, have an 0.42% expense ratio. While they are costlier than the average bond ETF, which don’t have a maturity date, investors will know what to expect from these target-date bond ETFs during a rising interest rate environment. [ETF Chart of the Day: Guggenheim BulletShares]

Looking at the range of yields, investors can get 0.51% on the ETF expiring this year and 3.45% for the one expiring 2020. The yield-to-worst on the high-yield ETF expiring this year is 2.87%, and the one expiring in 2018 has a yield-to-worst of 6.44%. [BulletShares ETFs: Unique Products Explained]

For more information on bond funds, visit our bond ETFs category.

Max Chen contributed to this article.

Read the disclaimer: Tom Lydon is a board member of the funds for Guggenheim Investments.