Target-Date ETFs

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As the U.S. braces for a rising interest rate environment, exchange traded fund (ETF) investors may adopt a bond ladder strategy to hedge against the risks through maturity- or target-date ETF options. With the Fed intent on hiking rates ahead, investors can implement a bond laddering strategy through defined-maturity bond funds to hedge their fixed-income positions. […]

Municipal debt and bond-related exchange traded funds have been used as a relatively stable fixed-income stream for many investment portfolios. Since muni bond interest is exempt from federal taxes, muni ETFs are a good way for investors seeking tax-exempt income, especially those in higher tax brackets. Due to its tax-exempt status, the asset category is […]

Investors who are implementing a laddered fixed-income portfolio with varying maturities to better manage interest rate risk may take a look at two new Guggenheim Investments target-maturity bond exchange traded funds. Guggenheim recently added the Guggenheim BulletShares 2025 Corporate Bond ETF (NYSEArca: BSCP) and the Guggenheim BulletShares 2023 High Yield Corporate Bond ETF (NYSEArca: BSJN), […]

The Wall Street Journal recently wrote about the extent to which Target Date funds are starting to incorporate liquid alternatives “in hopes of steadying performance with assets that may not move in lock step with mainstream stocks and bonds.” For anyone who doesn’t know, Target Date funds are designed to offer a core solution that […]

Fixed-income investors who like a more hands on approach in managing their bond investments can take a look at two new iShares municipal bond exchange traded funds that could fit well in a laddered portfolio strategy. BlackRock’s iShares recently launched the iBonds Dec 2021 AMT-Free Muni Bond ETF (NYSEArca: IBMJ) and the iBonds Dec 2022 […]

As the Federal Reserve works on its eventual interest rate hike, fixed-income investors can still generate yields and diminish rate risk with target-date bond exchange traded funds. With the Fed intent on hiking rates some time this year, investors can implement a bond laddering strategy through defined-maturity bond funds to hedge their fixed-income positions. For […]

Amid liquidity concerns and interest rate challenges, fixed income exchange traded funds remain popular destinations for professional investors. That much is apparent when reviewing the study, Bond Market Challenges Continue to Drive Demand for Fixed-Income ETFs, conducted by BlackRock’s (NYSE: BLK) iShares unit, the world’s largest ETF sponsor, and Greenwich Associates. “Overall, 59% of fixed-income […]

For the more conservative investor, target-maturity bond exchange traded funds help diminish volatility and better control rate risk in their fixed-income portfolios. ETFs provide a plethora of investment strategies and have characteristics that make them well suited for long-term passive investors, writes Sheyna Steiner for Bankrate. With interest rates set to rise as the Federal […]

BlackRock’s (NYSE: BLK) iShares unit, the world’s largest issuer of exchange traded funds, expanded its iShares iBonds lineup of fixed income exchange traded funds Thursday with the launch of seven defined maturity funds. The new ETFs are the iShares iBond Dec 2017 Corporate ETF (NYSEArca: IBDJ), iShares iBond Dec 2019 Corporate ETF (NYSEArca: IBDK), ishares […]

Fixed-income investors who are adhering to a specific investment timeline can utilize target-maturity exchange traded funds to meet their goals. For instance, Guggenheim Investments has a suite of “BulletShares” defined-maturity bond ETFs, including a range of corporate bond options for years up to the Guggenheim BulletShares 2024 Corporate Bond ETF (NYSEArca: BSCO) and a group […]

Conservative investors who opt to eschew high-flying investment themes may find target maturity bond exchange traded funds a good option to hedge volatility in their fixed-income portfolio. With interest rates set to rise as the Fed winds down its bond purchasing program and plans to hike rates to rein in inflation, a bond laddering strategy […]

BlackRock’s (NYSEArca: BLK) iShares unit, the world’s largest issuer of exchange traded funds, will close 18 of its ETFs, including 10 target date ETFs. The closures are “based on ongoing product reviews and client feedback and limited investor interest in the funds,” according to a statement issued by iShares. Earlier this year, iShares shuttered 10 […]

More investors are turning to diversified target-date strategies and related exchange traded funds for a simplified, all-in-one retirement savings plan. Brooks Herman, head of research at BrightScope, said that assets in target-date funds have increased 24% to $624 billion in 2013, Reuters reports. Target-date strategies take their namesake from the year when investors plan to […]

Investors can use target maturity bond exchange traded funds in a bond laddered strategy to help circumvent rate risk in fixed-income portfolios. Bert Whitehead, founder of Cambridge Connection Inc. and Alliance of Cambridge Advisors Inc., argues that holding a portfolio of bonds with set maturities at regular intervals over a 10- to 15-year period is […]

With a plethora of available options, investors can sift through hundreds or thousands of stocks and bonds to craft a diversified portfolio. Alternatively, investors with a general time horizon in mind can take a look at target-date exchange traded funds instead. The “target-date” investment refers to a general time in the future in which an […]

In anticipation of a rising interest rate environment, fixed-income investors have begun shifting down the yield curve. However, a number of target-date exchange traded funds provide an alternative option for those who are in for the long haul. In a rising interest rate environment, bonds with a fixed lower rate are less desirable than a […]

With the Fed set on easing back the monetary throttle, investors are beginning to realize the negative effects of a rising rate environment. Nevertheless, there are a number of alternative fixed-income exchange traded fund strategies to help diversify your bond portfolio. At the ETF Virtual Summit on January 15, the featured panel on “Creative Income […]

In 1993, Harrison Ford was being chased all over Chicago by Tommy Lee Jones, people were reading about the bridges of Madison County, and the very first phone-to-phone text message was sent somewhere in Finland. There are probably still fans of The Fugitive and The Bridges of Madison County, but there were 6.1 trillion text […]

Investors are worried about income generation and volatility in the equities market. However, ETFs can help investors diversify and augment yields in their portfolios. According to a Guggenheim survey, 72% of respondents are concerned about the impact of fixed-income yields on their portfolios. “Investors are looking for unique and innovative ways to find potential income […]

Guggenheim Investments is expanding its fast-growing suite of BulletShares that combine features of bond funds and individual bonds designed to help fixed-income investors deal with rising interest rates. The firm launched Guggenheim BulletShares 2021 Corporate Bond ETF (NYSE Arca: BSCL) and Guggenheim BulletShares 2022 Corporate Bond ETF (NYSE Arca: BSCM). “Given the Federal Reserve’s plan […]

Investors are moving away from bond assets as duration risk mounts with interest rates rising and ongoing Fed “tapering” concerns. However, “target-maturity” bond exchange traded funds are holding strong in the fixed-income space. Since the middle of May, target-maturity bond funds saw $174 million in net inflows, reports Murray Coleman for the Wall Street Journal. […]

Exchange traded fund sponsor iShares provides investors with a number of defined maturity-date bond options that help fixed-income investors manage interest rate risk, and one of the provider’s offerings is about to mature. According to a press release, the iShares 2013 S&P AMT-Free Municipal Series ETF (NYSEArca: MUAB) will mature and cease trading at the […]

While most investors and advisors are curtailing their exposure to fixed-income assets, some exchange traded fund providers plan to expand their bonds lineup, but doing so with rising interest rates in mind. BlackRock’s iShares is planning on increasing the number of its iSharesBond target-maturity ETFs, and Guggenheim Investments is working on expanding its line of […]

As interest rates rise, long-term bond investors can take a look at target-date, defined-maturity or target-maturity bond exchange traded funds to limit interest-rate exposure. Target maturity bond ETFs track a group of bonds that are expected to mature in a given year, collect on the bonds’ face value at maturity and pass the cash on […]

As a response to the historical low yields and the threat of rising interest rates, BlackRock’s iShares exchange traded fund arm has launched four defined-maturity-date corporate bond funds to help investors build a laddered fixed-income portfolio. According to a press release, the following four ETFs began trading Friday, April 19: iSharesBond 2016 Investment Grade Corporate […]

As interest rates continue to hover near their all-time lows, many people are beginning to wonder when rates will rise and how that might impact their investments. These days, a lot of attention has been focused on how higher interest rates might affect bond investments. While we’ve covered this topic on our blog, we are […]

Click here to listen. I do the “ETF of the Week” for MarketWatch every Thursday on Chuck Jaffe’s MoneyLife Show where I highlight big movers and disappointments within the exchange traded fund market. On Thursday, I looked at the Guggenheim BulletShares 2018 High Yield Corporate Bond ETF (BSJI). Defined-maturity ETFs are ideal for creating a […]

Investors can tailor their exposure to corporate debt with specialized bond ETFs. Defined-maturity ETFs can help investors customize their fixed-income portfolios. “Defined-maturity ETFs have been embraced by advisors who are building laddered portfolios, require income to support their client’s life-style, or are seeking to meet certain client’s life goal needs,” Guggenheim Investments Managing Director, Portfolio […]

Cost-conscious investors have taken a liking to target-date exchange traded funds. These ETFs are intended for investors who are saving for retirement ,and would like to a take a buy-and-hold approach. “It’s crucial for investors to pay attention to the fees they’re paying. The majority of assets in target-date funds are held in 401(k)s, and […]

Target-date exchange traded funds are continually re-balanced throughout ownership to maintain an age-appropriate level of risk. Recent Federal regulation within the financial industry has brought target-fate funds in focus and some are questioning whether investors understand the logic and risk associated with them. “The basic idea of target-date funds is pretty simple. They settle on […]