Expanding on its BulletShares target-date exchange traded fund line, Guggenheim launched investment-grade and high-yield corporate bond strategies to further help investors build out their bond laddering strategies as the market prepares for a rising rate environment.
On Wednesday, Guggenheim Investments rolled out the Guggenheim BulletShares 2026 Corporate Bond ETF (NYSEArca: BSCQ) and Guggenheim BulletShares 2024 High Yield Corporate Bond ETF (NYSEArca: BSJO). BSCQ has a 0.24% expense ratio and BSJO comes with a 0.42% expense ratio.
BSCQ’s credit quality breakdown includes investment grade AA 18.9%, A 55.0% and BBB 26.1%.
BSJO’s credit quality breakdown includes speculative-grade BB 66.3%, B 30.9%, CCC 2.1% and CC 0.4%.
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As opposed to other fixed-income ETFs that hold a variety of debt securities to achieve their target strategy, the BulletShares line are designed to mature in their specified year, allowing investors to target maturities in an attempt to ladder portfolios or to manage their fixed-income exposure in a focused time frame.
“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, 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.”