New High-Yield Corporate Bond ETFs

ETF Trends

More providers are rolling out fixed-income ETFs designed to capitalize on investors’ desire for yield.

Guggenheim Investments this week introduced several new specialized ETFs that focus on the U.S. high-yield corporate debt market, or “junk” bonds.

“BulletShares provide a cost-effective approach to bond laddering,” William Belden, head of product development for Guggenheim Investments said. “Advisors are increasingly looking for ways to use high-yield corporate bonds to diversify their clients’ portfolios, and these ETFs are a unique solution.” [High-Yield Bond ETFs Come with Risk]

The three new funds are:

  • 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)

The latest three funds to launch now brings the providers fixed income product line up to 16. According to a press release, Guggenheim BulletShare ETFs recently surpassed $1 billion in total assets as of March 14, 2012.

Analysts say that the fundamental picture for high-yield bonds hasn’t changed. As company balance sheets are looking healthy and investors continue to search for yield, the demand will be strong. [ETF Spotlight: High Yield Corporate Bonds]

Rachel Koning Beals for US News reports that companies are aggressively refinancing their debt to improve their credit rating, due to this low-rate climate. In turn, this has boosted European investing demand for access to the much deeper U.S. bond market, including high-yield debt. [Some ETFs to Ride Out Market Volatility]

Tisha Guerrero contributed to this article.

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

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