Draper said the BulletShares suite allowed investors to build “laddered portfolios” in a rising rate environment.
“It’s an important innovation,” he said.
On the BulletShares website, investors can use a tool to select an ETF bond ladder scenario and adjust the weighting to view the effects on effective duration, yield to maturity and SEC yield when including BulletShares ETFs in a standard fixed income portfolio.
Earlier this week, Tim Urbanowicz, Senior Fixed Income ETF Strategies at Invesco, told ETF Trends that fundamentals in the high yield market appear strong.
“So far in 2018, we are seeing many investors rotating out of traditional high yield vehicles and into defined maturity ETFs in the Invesco BulletShares suite,” Urbanowicz said.
For more ETF-related commentary from Tom Lydon and other industry experts, visit our video category.