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 to ease stimulus and increase interest rates, target date maturity ETFs represent an attractive alternative to traditional bond funds. Specifically, these ETFs can act as a hedge against higher interest rates, which would likely diminish returns of traditional bond funds,” Guggenheim Investments said.
“Defined maturity ETFs can also help investors meet specific savings and retirement goals,” the asset manager noted. “Defined maturity exposure, particularly through portfolios of either investment-grade or high-yield corporate bonds, enables investors to build customized portfolios tailored to specific maturity profiles, risk preferences and investment goals.” [Target-Maturity Bond ETFs]
Target-maturity bond ETFs have gathered $174 million since mid-May when Treasury yields started to jump.