Claymore Introduces BulletShares Target Maturity Bond ETFs

June 8, 2010 by  
Filed under Commentary, ETF IPOs (New ETFs), ETFs

Claymore launched a suite of seven fixed-term investment grade corporate bond ETFs yesterday (6/7/2010).  Known as BulletShares, these ETFs are constructed for potential monthly distributions and a final distribution at maturity.  The funds have designated years of maturity ranging from 2011 to 2017 and will terminate on or about December 31st of their respective maturity year.

Back in January, iShares launched its AMT-Free Municipal Series of six ETFs with target end dates of 2012 to 2017.  The new Claymore BulletShares extends this concept to the world of invest-grade taxable corporate bonds, allowing investors to target future obligations and create laddered portfolios.

The underlying BulletShares Indices were created by Accretive Asset Management.  Selective index data is displayed below but keep in mind that it is index data and not fund level data.  The funds intend to use a sampling approach and will not hold as many bonds as indicated.  Additionally, the yields will likely be reduced by the 0.24% expense ratio of each ETF.

The new BulletShares are:

  • Claymore BulletShares 2011 Corporate Bond ETF (BSCB) (summary page) has an underlying index containing 152 bonds with a weighted average modified duration of 1.0 and a weighted average yield to maturity of 1.9%.
  • Claymore BulletShares 2012 Corporate Bond ETF (BSCC) (summary page) has an underlying index containing 170 bonds with a weighted average modified duration of 2.0 and a weighted average yield to maturity of 2.5%.
  • Claymore BulletShares 2013 Corporate Bond ETF (BSCD) (summary page) has an underlying index containing 185 bonds with a weighted average modified duration of 2.7 and a weighted average yield to maturity of 2.7%.
  • Claymore BulletShares 2014 Corporate Bond ETF (BSCE) (summary page) has an underlying index containing 189 bonds with a weighted average modified duration of 3.6 and a weighted average yield to maturity of 3.4%.
  • Claymore BulletShares 2015 Corporate Bond ETF (BSCF) (summary page) has an underlying index containing 142 bonds with a weighted average modified duration of 4.3 and a weighted average yield to maturity of 3.8%.
  • Claymore BulletShares 2016 Corporate Bond ETF (BSCG) (summary page) has an underlying index containing 86 bonds with a weighted average modified duration of 5.0 and a weighted average yield to maturity of 4.3%.
  • Claymore BulletShares 2017 Corporate Bond ETF (BSCH) (summary page) has an underlying index containing 121 bonds with a weighted average modified duration of 5.8 and a weighted average yield to maturity of 4.7%.

Disclosure covering writer, editor, and publisher:  No positions in any of the securities mentioned.  No positions in any of the companies or ETF sponsors mentioned.  No income, revenue, or other compensation (either directly or indirectly) received from, or on behalf of, any of the companies or ETF sponsors mentioned.

Comments

Comments are closed.