Claymore Launches Seven Fund Fixed Income ETF Suite.
LISLE, Ill. -- Claymore Securities, Inc. announced today the launch of the Claymore BulletShares Corporate Bond ETFs, a suite of ETFs with designated years of maturity ranging from 2011 through 2017 that invest in investment-grade corporate bonds with effective maturities in the years respective to each Fund.
Claymore BulletShares Corporate Bond ETFs < Fund Ticker Claymore BulletShares 2011 Corporate Bond ETF < BSCB Claymore BulletShares 2012 Corporate Bond ETF < BSCC Claymore BulletShares 2013 Corporate Bond ETF < BSCD Claymore BulletShares 2014 Corporate Bond ETF < BSCE Claymore BulletShares 2015 Corporate Bond ETF < BSCF Claymore BulletShares 2016 Corporate Bond ETF < BSCG Claymore BulletShares 2017 Corporate Bond ETF < BSCH
The seven ETFs, which seek to replicate the BulletShares(TM) USD Corporate Bond Indices developed by Accretive Asset Management LLC, provide investors with a convenient way to invest in the corporate bond market. The Funds enable advisors to build laddered portfolios in a cost-effective and diversified manner, fill-in gaps of existing bond portfolios, and address investors' lifestyle needs by providing the potential for cash distributions of income during the life of the ETF and principal at the ETFs' maturity that can be applied towards retirement, college or other expenses.
"The Claymore BulletShares Corporate Bond ETF suite enhances investor access to the investment grade corporate bond market," commented William Belden, Managing Director, Claymore Securities, Inc. "The Funds consist of comprehensive portfolios of corporate bonds with similar effective maturities. When used individually or in combination, the Funds provide investors the opportunity to structure portfolios of corporate bonds based upon their lifestyle-driven investment needs."
Claymore BulletShares Corporate Bond ETFs offer investors benefits relative to investing in individual corporate bonds and most other fixed income investment products including immediate diversification, exchange-traded liquidity, professional management, and access to corporate bonds that may otherwise be unavailable. As part of an overall portfolio, they enable advisors to invest according to their clients' specific cash flow needs with effective maturities of the ETFs ranging from 2011 to 2017.
"We are pleased with Claymore's launch of this suite of products. The BulletShares(TM)USD Corporate Bond Indices were designed with investors' needs in mind," said Darrin DeCosta, Head of Product Development for Accretive Asset Management LLC. "The indices are constructed through a transparent, rules-based methodology with the goal of building diversified bond portfolios that deliver the best attributes of investments in individual bonds and bond funds."
For more information on the Claymore BulletShares Corporate Bond ETFs please visit www.claymore.com/BulletShares or call (800) 345-7999.
About Claymore Securities
Claymore Securities, Inc. offers strategic investment solutions for financial advisors and their valued clients. As an innovator in exchange-traded funds (ETFs), unit investment trusts (UITs) and closed-end funds (CEFs), Claymore often leads its peers with creative investment strategy solutions. In total, Claymore entities provide supervision, management, or servicing on approximately $15.9 billion in assets as of March 31, 2010. Claymore Securities, Inc. is a wholly-owned subsidiary of Guggenheim Partners, LLC, a global, diversified financial services firm with more than $100 billion in assets under supervision. Guggenheim, through its affiliates, provides investment management, investment advisory, insurance, investment banking, and capital markets services. The firm is headquartered in Chicago and New York with a global network of offices throughout the United States, Europe, and Asia. Claymore Advisors, LLC, an affiliate of Claymore Securities, Inc., serves as the Funds' investment adviser.
About Accretive Asset Management LLC
Accretive Asset Management LLC creates products that help financial advisors better serve their clients. Through creative thinking informed by a strategic understanding of the marketplace, Accretive devises innovative solutions to problems faced by financial advisors and investors. BulletShares[TM] Indices provide maturity targeted exposure to fixed income markets and are engineered to serve as the basis for products that combine the best attributes of investing in bonds and bond funds. For more information, see www.BulletShares.com.
The Funds have designated years of maturity ranging from 2011 to 2017 and will terminate on or about December 31st of their respective maturity year. In connection with such termination, each Fund will make a cash distribution to then-current shareholders of its net assets after making appropriate provisions for any liabilities of the Fund. The Funds do not seek to return any predetermined amount at maturity. In each Fund's last year of operation, as the bonds held by it mature, the Fund's portfolio will transition to cash and cash equivalents, including without limitation U.S. Treasury Bills and investment grade commercial paper, which may result in a lower yield than the yields of the bonds previously held by the Fund and/or prevailing yields for bonds in the market. The Funds will terminate on or about the date above without requiring additional approval by the Trust's Board of Trustees (the "Board") or Fund shareholders. The Board may change the termination date to an earlier or later date if a majority of the Board determines the change to be in the best interest of the Funds.
Investors should consider the following risk factors and special considerations associated with investing in the Funds, which may cause you to lose money, including the entire principal amount that you invest. Interest Rate Risk: As interest rates rise, the value of fixed-income securities held by the Funds are likely to decrease. Securities with longer durations tend to be more sensitive to interest rate changes, making them more volatile than securities with shorter durations. Credit/Default Risk: The risk that issuers or guarantors of debt instruments or the counterparty to a derivatives contract, repurchase agreement or loan of portfolio securities is unable or unwilling to make timely interest and/or principal payments or otherwise honor its obligations. Debt instruments are subject to varying degrees of credit risk, which may be reflected in credit ratings. Securities issued by the U.S. government have limited credit risk. Credit rating downgrades and defaults (failure to make interest or principal payment) may potentially reduce the Fund's income and share price. Asset Class Risk: The bonds in the Funds' portfolio may underperform the returns of other bonds or indexes that track other industries, markets, asset classes or sectors. Call Risk/Prepayment Risk: During periods of falling interest rates, an issuer of a callable bond may exercise its right to pay principal on an obligation earlier than expected. This may result in the Fund's having to reinvest proceeds at lower interest rates, resulting in a decline in the Funds' income. Extension Risk: The risk that an issuer will exercise its right to pay principal on an obligation later than expected. This may happen when there is a rise in interest rates. Under these circumstances, the value of the obligation will decrease and the Funds' performance may suffer from its inability to invest in higher yielding securities. Income Risk: The risk that falling interest rates will cause the Funds' income to decline. Liquidity Risk: If the Funds invest in illiquid securities or securities that become illiquid, Fund returns may be reduced because the Funds may be unable to sell the illiquid securities at an advantageous time or price. Foreign Issuers Risk: Investing in U.S. registered, dollar-denominated bonds of foreign corporations, which have different risks than investing in U.S. companies. These include currency, political, and economic risk, as well as less market liquidity, generally greater market volatility and less complete financial information than for U.S. issuers. Declining Yield Risk: During the final year of the Funds' operations, as the bonds held by the Funds mature and the Funds' portfolios transitions to cash and cash equivalents, the Funds' yield will generally tend to move toward the yield of cash and cash equivalents and thus may be lower than the yields of the bonds previously held by the Funds and/or prevailing yields for bonds in the market. Fluctuation of Yield and Liquidation Amount Risk: The Funds, unlike a direct investment in a bond that has a level coupon payment and a fixed payment at maturity, will make distributions of income that vary over time. Unlike a direct investment in bonds, the breakdown of returns between Fund distributions and liquidation proceeds are not predictable at the time of your investment. For example, at times during the Funds' existence, it may make distributions at a greater (or lesser) rate than the coupon payments received on the Funds' portfolio, which will result in the Funds returning a lesser (or greater) amount on liquidation than would otherwise be the case. The rate of Fund distribution payments may adversely affect the tax characterization of your returns from an investment in the Fund relative to a direct investment in corporate bonds. If the amount you receive as liquidation proceeds upon the Funds' termination is higher or lower than your cost basis, you may experience a gain or loss for tax purposes. Derivatives Risk: The Funds may invest in certain types of derivatives contracts, including futures, options and swaps which, increases the risk of loss for the Fund. In addition the Funds are subject to: Non-Correlation Risk, Replication Management Risk, Issuer-Specific Changes and Non-Diversified Fund Risk. Please read the Funds' prospectus for more detailed information on these risks and considerations.
The Index provider and its affiliates do not make any warranties or bear any liabilities with respect to Claymore. BulletShares(TM) and BulletShares(TM) USD Corporate Bond Indices are trademarks of Accretive Asset Management LLC and have been licensed for use by Claymore Advisors, LLC.
Consider the investment objectives, risks, charges and ongoing expenses of any ETF carefully before investing. The prospectus or summary prospectus, if available, contains this and other relevant information. Please read the prospectus carefully before investing. To obtain a prospectus, visit www.claymore.com or contact a securities representative or Claymore Securities, Inc. 2455 Corporate West Drive, Lisle, IL 60532, (800) 345-7999.
Member FINRA/SIPC (6/10)
NOT FDIC - INSURED * NOT BANK - GUARANTEED * MAY LOSE VALUE
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|Date:||Jun 7, 2010|
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