From the August 2010 issue of Research Magazine • Subscribe!

Maturity-Date Funds Arrive

Claymore gets mature with target dates.

Seven corporate bond ETFs were launched by Claymore Securities. The new bond ETFs have maturity dates in the 2011-2017 range and follow indexes that mainly invest in investment grade corporate bonds.

Each index is designed to represent the performance of a held-to-maturity portfolio of U.S. dollar-denominated investment-grade corporate bonds with effective maturities in the same calendar year. Accretive Asset Management is the index provider for the BulletShares USD Corporate Bond series.

The funds' bond portfolios are rebalanced monthly and weighted by market value. Also, income distributions are made monthly and annual expenses for the Claymore bond ETFs is 0.24 percent.

The funds are non-diversified, meaning they can invest a greater portion of assets in securities of individual issuers than can a diversified fund.

The lineup includes the following funds:

  • Claymore BulletShares 2011 Corporate Bond ETF (BSCB)
  • Claymore BulletShares 2012 Corporate Bond ETF (BSCC)
  • Claymore BulletShares 2013 Corporate Bond ETF (BSCD)
  • Claymore BulletShares 2014 Corporate Bond ETF (BSCE)
  • Claymore BulletShares 2015 Corporate Bond ETF (BSCF)
  • Claymore BulletShares 2016 Corporate Bond ETF (BSCG)
  • Claymore BulletShares 2017 Corporate Bond ETF (BSCH)

As of April, the 2011 fund held approximately 154 investment grade corporate bonds with effective maturities in that year. The number of bond issues held in the other funds ranged from 86 to 187.

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