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This ETF, part of a suite of "BulletShares" products from Guggenheim, is unique in the fixed income space in that it delivers targeted exposure to a very narrow segment of the fixed income universe: investment grade corporate bonds maturing in 2016. This hyper-targeted focus makes BSCG much more precise than the majority of bond ETFs (including both investment grade corporate and other broad-based bond ETFs) that hold securities maturing within a certain number of years (such as 7-10 year Treasuries or 1-3 year corporate bonds). These bond ETFs generally intend to operate indefinitely; instead of holding bonds to maturity and distributing the proceeds, they sell securities when they no longer fall into the relevant "maturity window" and reinvest the proceeds in other debt instruments. As a result, most bond ETFs (not the BulletShares ETFs) maintain a similar duration and interest rate risk across time. BSCG is different in that this fund maintains a target maturity date, and will eventually close down after the underlying bonds have reached maturity and the principal has been paid out to shareholders (BSCG's portfolio will gradually convert to cash as 2016 approaches and the underlying bonds repay their principal). As a result of this structure, this product will deliver a "yield experience" that is more similar to holding an individual bond; investors in BSCG will receive regular coupon payments (just like any bond ETF), but will also receive repayments of principal when the underlying bonds reach maturity. Unlike holding a single bond, however, BSCG provides diversification across various debt issuers--which can obviously help to reduce overall risk. The "BulletShares" approach, which is generally simple and straightforward, may be appealing to a wide range of investors. The methodology gives investors tools to precisely manage the risk/return profile of a fixed income portfolio, and can be a useful in matching up expected cash inflows (from principal repayments) with expected future liabilities. The predictable cash flow profile and risk trajectory may be appealing for all types of investors, ranging from pension funds planning to meet an upcoming liability to a family planning to fund a college education a few years down the road. The target maturity date structure may have other benefits as well; these products can avoid the "return erosion" that some believe adversely impacts bond ETFs as a result of minimum maturity windows and front-running opportunities resulting from predictable buying and selling patterns. BSCG won't be useful for all investors, and likely won't be a core holding in any long-term, buy-and-hold portfolio. Those looking for a low maintenance approach to fixed income exposure or those interested in maintaining stable interest rate risk across time may look towards ETFs that effectively reinvest proceeds received as underlying bonds get close to maturity (such as LQD). But for those looking fine tune fixed income portfolios and manage future liabilities, BSCG and the other BulletShares products may be very useful instruments.
The adjacent table gives investors an individual Realtime Rating for BSCG on several different metrics, including liquidity, expenses, performance, volatility, dividend, concentration of holdings in addition to an overall rating. The "A+ Metric Rated ETF" field, available to ETFdb Pro members, shows the ETF in the Corporate Bonds with the highest Metric Realtime Rating for each individual field. To view all of this data, sign up for a free 14-day trial for ETFdb Pro. To view information on how the ETFdb Realtime Ratings work, click here.View the Category Report
The following tables and charts contain in-depth metrics for this ETF and compare it to similar peer ETFs within its ETFdb.com Category.
This ETF is currently available for commission free trading on the following platforms: (Charles Schwab)
There are 22 other ETFs in the Corporate Bonds ETFdb.com Category that are also eligible for commission free trading:
This section shows how this ETF has performed relative to its peer group ETFdb.com Category.
The following charts can be customized to display historical performance in a number of different formats, including line charts, bar charts, and candlesticks. Time periods can be adjusted to increase or decrease the period shown, ranging from five minutes to several months.
The following chart also includes the option to compare the performance of BSCG relative to other ETFs and benchmarks or to include indicators such as Bollinger Bands, relative strength, and moving averages.
This section shows how the volatility of this ETF compares to the peer group ETFdb.com Category.
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