Claymore Launches Maturity Date Corporate Bond ETFs
Tuesday, June 8th, 2010Michael Johnston submits:
The latest innovation in the rapidly-growing fixed income ETF space was rolled out on Friday, as Claymore introduced a line of seven ETFs, each of which focuses on corporate bonds with maturity dates falling in a specific year. The new ETFs are:
- BulletShares 2011 Corporate Bond ETF (BSCB)
- BulletShares 2012 Corporate Bond ETF (BSCC)
- BulletShares 2013 Corporate Bond ETF (BSCD)
- BulletShares 2014 Corporate Bond ETF (BSCE)
- BulletShares 2015 Corporate Bond ETF (BSCF)
- BulletShares 2016 Corporate Bond ETF (BSCG)
- BulletShares 2017 Corporate Bond ETF (BSCH)
Each of the new ETFs is linked to an index comprised of investment grade corporate bonds with a maturity date in the year included within the fund name. Unlike most fixed income ETFs, the BulletShares products will convert to cash as the relevant year draws to a close, with a distribution made to shareholders upon maturity. So from an investor perspective, the experience will be similar to holding an individual bond to maturity–a scenario that allows increased flexibility in managing interest rate risk–although the ETF structure offers the benefit of instant diversification across a number of issuers.
