Toronto-based Claymore Investments, Inc. has launched the Claymore 1-5 Year Laddered Corporate Bond ETF on Wednesday, 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 year, 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 this ETF brings a simple single fund, with ultra-low cost management fees, allowing clients to access this strategy for their portfolios,” said Som Seif, president & CEO of Claymore Investments Inc. This ETF “expands our fixed-income ETF line up 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.”
Claymore launches laddered corporate bond ETF
Bond is aimed to take advantage of higher yields that corporate bonds are enjoying over Government bonds
- By: IE Staff
- February 25, 2009 February 25, 2009
- 09:06