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Guggenheim’s BulletShares Suite Helps Mitigate Rate Risk


Yields on ten-year U.S. Treasuries have come in a bit in recent weeks, but that does not mean the current environment is free of interest rate risk.

One way investors can combat rate risk is with Guggenheim’s suite of BulletShares ETFs, a group of 18 defined maturity corporate bond ETFs covering both the investment-grade and high-yield arenas.

ETF Trends Tom Lydon recently sat down with Bill Belden, Managing Director at Guggenheim, at the Morningstar ETF Invest Conference in Chicago to discuss BulletShares and alternative tactics for fixed income investors in today’s low interest rate environment.

“The beauty of BulletShares ETFs is that they have defined maturities that mitigate the rate risk in the market today,” said Belden.

Belden noted that three BulletShares ETFs have matured over the past two years. The next BulletShares ETF to mature is the $183.8 million Guggenheim BulletShares 2013 Corporate Bond ETF (BSCD) , which will terminate on the last day of 2013.

Belden and Lydon also discussed the $471.6 million actively managed Guggenheim Enhanced Short Duration ETF (GSY) , which can act as an alternative to low-yielding money market investments.

“GSY provides investors with an attractive alternative to what they’re doing now with their strategic cash allocations,” said Belden. “GSY can help enhance yields within portfolios.

Watch the video below to see the full interview with Bill Belden.