Guggenheim Funds Distributors, Inc. announced the launch of two new actively managed exchange-traded funds (ETFs), the Guggenheim Enhanced Core Bond ETF (NYSE Arca: GIY) and the Guggenheim Ultra-Short Bond ETF (NYSE Arca: GSY). The two funds seek to offer the benefits of active management and a cost-effective way to access today’s fixed income marketplace.
- Guggenheim Enhanced Core Bond ETF* is an actively managed ETF that seeks total return comprised of income and capital appreciation. The Fund will normally invest at least 80% of its net assets in fixed income securities and attempts to outperform the Barclays Capital U.S. Aggregate Bond index. The Investment Adviser utilizes a quantitative strategy which attempts to identify relative mispricing among the instruments of a given asset class and estimate future returns which may arise from the eventual correction of the relative mispricing.
- Guggenheim Enhanced Ultra-Short Bond ETF** is an actively managed ETF that seeks maximum income, consistent with preservation of capital and daily liquidity. The Fund will normally invest at least 80% of its net assets in fixed income securities. The Fund uses a low duration strategy to seek to outperform the 1-3 Month Treasury Bill Index in addition to providing returns in excess of those available in U.S. Treasury bills, government repurchase agreements, and money market funds. The Fund is not a money market fund and thus does not seek to maintain a stable net asset value of $1.00 per share.
“We’re continually working to deliver advisors intelligent new products to sharpen their investment toolkits,” commented Steve Baffico, Senior Managing Director, Guggenheim Funds Distributors, Inc. “These new actively managed funds combine the benefits of active management—including a rigorous, risk-managed security selection process and the potential to outperform a benchmark index — with the multi-faceted advantages of the ETF structure.”
The ETF structure complements the dynamics of an actively managed strategy, providing a transparent and tax-efficient investment product blended with portfolio management expertise that provides for the opportunity to outperform a benchmark index.
For more information on the Guggenheim Enhanced Core Bond ETF or the Guggenheim Enhanced Ultra-Short Bond ETF click the hyperlinks above or call 800-345-7999.
Guggenheim Funds Distributors, Inc.
Guggenheim Funds offers strategic investment solutions for financial advisors and their valued clients. As an innovator in ETFs, unit investment trusts (UITs) and closed-end funds (CEFs), Guggenheim Funds often leads its peers with creative investment strategy solutions. Guggenheim Funds and its affiliates provide supervision, management or servicing of assets with a commitment to consistently delivering exceptional service. Guggenheim Funds is a subsidiary of Guggenheim Partners, LLC, a global, diversified financial services firm with more than $100 billion in assets under supervision. Guggenheim Partners, 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. Guggenheim Funds Investment Advisors, LLC, an affiliate of Guggenheim Funds Distributors, Inc., serves as the Funds’ investment adviser.
*Prior to June 1, 2011, the Fund’s name was Claymore U.S. Capital Markets Bond ETF and the Fund sought to replicate an index call The Capital Markets Bond IndexSM.
**Prior to June 1, 2011, the Fund’s name was Claymore U.S. Capital Markets Micro-Term Fixed Income ETF and the Fund sought to replicate an index called The Capital Markets Liquidity IndexSM.
Risk and Other Considerations
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. Credit/Default Risk: Credit risk is 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. However, securities issued by certain U.S. government agencies are not necessarily backed by the full faith and credit of the U.S. government. Credit rating downgrades and defaults (failure to make interest or principal payment) may potentially reduce the Funds’ income and share price. Interest Rate Risk: As interest rates rise, the value of fixed-income securities held by the Fund 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. Management Risk: The Funds are subject to management risk because they are actively managed portfolios. In managing the Funds’ portfolio securities, the Investment Adviser will apply investment techniques and risk analyses in making investment decisions for the Funds, but there can be no guarantee that these will produce the desired results. Risk of Deviation between Market Price and NAV: Unlike conventional ETFs, the Funds are not index funds. The Funds are actively managed and do not seek to replicate the performance of a specified index. There can be no assurance as to whether and/or the extent to which the shares will trade at premiums or discounts to NAV. In addition, the Funds are subject to additional risks and other considerations not mentioned above. Please read the prospectuses for additional information.
Consider the investment objectives, risks, charges and ongoing expenses of any ETF carefully before investing. The prospectuses or summary prospectuses, if available, contain this and other relevant information. Please read the prospectus carefully before investing. To obtain a prospectus, visit www.guggenheimfunds.com or contact a securities representative or Guggenheim Funds Distributors, Inc. 2455 Corporate West Drive, Lisle, Ill. 60532, 800-345-7999.
Member FINRA/SIPC (6/11)
NOT FDIC INSURED • NOT BANK GUARANTEED • MAY LOSE VALUE