By the near end of the BulletShares yield curve, investors may see monthly pay outs on a 12-month yield of 100 basis points. For the far end of the yield curve, 12-month yields may go between high 300s to low 400s basis points, says Baffico. A corporate bond issuance usually holds a duration of 5 or 10 years. [Corporate Bond ETFs Back in Favor.]
As compared to other well-established corporate bond ETFs, BulletShares ETFs have extremely low turnovers since they were designed to hold securities to maturity. Other corporate bond ETFs undergo turnovers from rebalancing and creation/redemption processes, which may increase the tracking error.
For more information on corporate bond ETFs, visit our corporate bonds category.
Max Chen contributed to this article.