Guggenheim introduced two more target-date, investment-grade corporate bond ETFs with maturities expiring in 2021 and 2022.
The pair of new ETFs—the Guggenheim BulletShares 2021 Corporate Bond ETF (BSCL) and Guggenheim BulletShares 2022 Corporate Bond ETF (BSCM)—join the company’s family of target-date investment grade corporate bond funds with maturities ranging from 2013 to 2020.
Guggenheim also offers target-maturity, high-yield corporate bond ETFs with maturities from 2013 through 2018.
The allure of target-date bond ETFs is they can serve as a diversified replacement to individual bonds. Instead of having credit exposure to one bond issue, target date bond ETFs own various bonds with the same maturity date. They can also be used to build a laddered bond portfolio based upon a person’s unique cash flow requirements.
BlackRock’s iShares unit also offers passively managed target date corporate bond ETFs maturing in the years 2016, 2018, 2020 and 2023. Each of those funds charges 0.10%.
The BulletShares funds are designed to automatically terminate on Dec. 31 of the year in the fund’s respective label. Once the fund closes, it’s delisted and ETF investors receive the net asset value minus expenses.
The corporate bond BulletShares ETFs carry annual expense ratios of 0.24%.