Guggenheim Investments this week expanded its lineup of bond ETFs with specific maturities that provide some protection against rising interest rates.
The firm launched Guggenheim BulletShares 2019 High Yield Corporate Bond ETF (NYSEArca: BSJJ) and Guggenheim BulletShares 2020 High Yield Corporate Bond ETF (NYSEArca: BSJK).
“Unlike other fixed income ETFs, BulletShares are designed to mature in their target year—providing investors with specific maturities to ladder portfolios or to manage their fixed income exposure within specific investment time frames,” Guggenheim said.
There is nearly $2 billion invested in the BulletShares ETF family.
“Our high yield BulletShares offer investors a creative way to tap into the high yield corner of the fixed income market by focusing on securities with a given maturity date,” said William Belden, a managing director at Guggenheim Investments. “The defined-maturity feature continues to be a proven investment strategy for investors looking to save for life events like retirement amid a volatile economic environment.”
The ETFs make interest payments, and when the funds mature, all assets are distributed to shareholders. [Defined-Maturity Bond ETFs: A Silver ‘Bullet’ for Rising Rates?]