Guggenheim Investments, one of the largest U.S. issuers of exchange traded funds, said Monday it is unveiling two new videos to increase education and awareness of the firm’s defined maturity BulletShares ETFs.
Defined maturity ETFs typically buy bonds that mature in the year the fund will terminate, ensuring that investors can collect the bonds face value at maturity, along with a steady income payout along the way. Investors are meant to buy-and-hold these types of investments until they mature. In contrast, a regular bond ETF runs the risk of losing its original principal if interest rates go up, depending on the bond ETF’s effective duration. [Target Date ETFs for Retirement]
With the departure of BlackRock’s iShares from the target date ETF arena earlier this year, Guggenheim maintains a solid grip on dominance in this ETF genre. Guggenheim offers 11 investment-grade BulletShares ETFs with maturities ranging from 2014 through 2024 and nine high-yield BulletShares funds with maturities ranging from 2014 through 2022.
Guggenheim’s BulletShares ETFs have more than $6 billion in combined assets under management. When the Guggenheim BulletShares 2014 Corporate Bond ETF (NYSEArca: BSCE) matures at the end of this year, Guggenheim will return $800 million to shareholders of that fund, more than most ETF issuers have across their entire defined maturity lineup.
The BulletShares product suite asset base has grown $2 billion to more than $6.1 billion, an increase of 47% YTD, according to Guggenheim.