Claymore Investments has announced the launch of the 1-5 Yr Laddered Corporate Bond ETF, which seeks to provide a return based on the price and performance, less expenses, of the DEX 1-
Claymore Investments has announced the launch of the 1-5 Yr Laddered Corporate Bond ETF, which seeks to provide a return based on the price and performance, less expenses, of the DEX 1-5 yr Laddered Corporate Bond Index.
The ETF provides investors of different sizes with the opportunity to gain exposure to a diversified corporate bond portfolio, designed into five staggered maturity levels from one year to five years, which are equally weighted.
Each year, bonds will roll into lower ladder bucket, with all bonds from shortest term bucket rebalancing out the “new” longest bucket. Each bucket will consist of approximately five or more bond positions with a minimum credit rating of A from rating agencies.
“Building a fixed income ladder can be a great investment strategy, but can be difficult for many investors, and the Claymore 1-5 Yr Laddered Corporate Bond ETF brings a simple single fund, with ultra low cost management fees allowing clients to access this strategy for their portfolios,” says Som Seif, president and chief executive of Claymore Investments.
‘The fund expands our fixed income ETF lineup, and compliments our very successful Government Bond Ladder ETF. Given the higher yields that corporate bonds are currently providing relative to government bonds, we believe that the risk/return opportunity of corporate bonds is attractive at this time.’