Claymore Investments, Inc. Tuesday announced the launch of the common and advisor class units of Claymore 1-10 Yr. Laddered Government Bond ETF and Claymore 1-10 Yr. Laddered Corporate Bond ETF.
The two new laddered bond ETFs expand on Claymore’s existing lineup of 1-5 year government and corporate laddered bonds ETFs.
Claymore 1-10 Yr. Laddered Government Bond ETF (TSX:CLG/CLG.A) seeks investment results that correspond generally to the price and yield (before fees and expenses) of the DEX 1-10 Year Laddered Government Bond Index. CLG will hold constituent securities of the index in substantially the same proportion as they are reflected in that index. The portfolio will consist primarily of semi-annual pay fixed rate government bonds issued domestically in Canada and denominated in Canadian dollars with an investment grade rating and a remaining effective term to maturity of between zero and ten years. The management fee will be 0.15%, similar to Claymore 1-5 Yr. Laddered Government Bond ETF.
Claymore 1-10 Yr. Laddered Corporate Bond ETF (TSX: CBH/CBH.A) seeks investment results that correspond generally to the price and yield (before fees and expenses) of the DEX 1-10 Year Laddered Corporate Bond Index. CBH will hold constituent securities of the index in substantially the same proportion as they are reflected in that index. The portfolio will consist primarily of semi-annual pay fixed rate corporate bonds issued domestically in Canada and denominated in Canadian dollars with an investment grade rating and a remaining effective term to maturity of between zero and ten years. The management fee will be 0.25%, similar to Claymore 1-5Yr Laddered Corporate Bond ETF.
CLG and CBH are structured using a laddered strategy, which allocates the capital of the funds over the staggered maturity dates of the securities in their respective portfolios.
“When it comes to bond investing, we believe that a laddered bond strategy remains one of the best ways to passively own bonds. These two new ETFs extend on the success of our existing 1-5 year laddered ETFs, which have clearly had great demand from the market, with close to $2 billion in assets already,” saus Som Seif, president & CEO of Toronto-based Claymore Investments, Inc.
“These laddered bond ETFs remain one of Canada’s lowest cost options when it comes to bond investing,” he adds
The two new funds have closed their initial offerings and will began trading on the Toronto Stock Exchange on Tuesday.