Guggenheim/BulletShares has also added high-yield corporate bonds to their target-date maturity line-up. Corporate bonds are denoted high-yield for the sole reason that firms issuing them are highly leveraged, according to Morningstar analysts.
With this increased leverage comes the increased probability of default and bankruptcy. Overall, risk equals return, and the high yield of these bonds is designed to compensate investors for this risk. [Bond ETF Ideas for Higher Yields]
A sample from the Guggenheim suite of Target-Maturity ETFs:
- Guggenheim BulletShares 2012 Corporate Bond ETF (NYSEArca: BSCC)
- Guggenheim BulletShares 2013 Corporate Bond ETF (NYSEArca: BSCD)
- Guggenheim BulletShares 2014 Corporate Bond ETF (NYSEArca: BSCE)
Tisha Guerrero contributed to this article.
Read the disclaimer: Tom Lydon is a board member of the funds for Guggenheim Investments.