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Claymore Plans Target-Date Junk ETF Lineup
September 02, 2010 4:08 pm
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Claymore Securities, the Lisle, Ill.-based fund sponsor, is planning a series of nine target maturity date high-yield corporate bond ETFs, according to papers it filed on Wednesday with the Securities and Exchange Commission. The new funds, each with a unique annual maturity date ranging from Dec. 31, 2012 to Dec. 31, 2020, will track indexes of high-yield corporate, or “junk,” bonds furnished by Accretive Asset Management, the Naperville, Ill.-based advisory. The proposed funds are:
Once each fund hits its target date, Claymore will make a cash distribution of net assets to shareholders, effectively closing down each ETF. Accretive’s BulletShares indexes are heavy on financial-, pharmaceutical- and industrial-sector paper and, as their junk bond focus suggests, high on yield. The top three holdings of the 2012 BulletShares Corporate Bond Index, for instance, are two notes from General Electric Capital Corporation with coupons of 5.25 percent and 6 percent, respectively, and a Pfizer bond with a 4.45 percent yield. The weighted coupon average for the 2012 BulletShares Corporate Bond Index is 5.7 percent. Claymore, which plans to shutter four ETFs on Sept. 10, appears to be in the midst of a major product lineup reboot in an effort to focus on more profitable and easily marketed ETFs. Claymore’s focus on relatively high-yielding debt looks timely, although the new funds won’t hit the market until least mid-December, once the 75-day quiet period for the proposed ETFs elapses. But for now, concern among investors that the economy is slowing is motivating them to bolt from The proposed funds will trade on the New York Stock Exchange’s Arca platform. The filing didn’t specify ticker symbols or expense ratios. |
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February 01, 2012
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February 01, 2012
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January 31, 2012
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January 30, 2012
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