BulletShares Corporate Bond Portfolios
Total Expense Ratio: 0.10%
From a broad universe of investment grade or high yield issues, bonds are selected according to credit quality and maturity date to create the defined maturity ETFs.
|BulletShares ETFs||Traditional Fixed Income ETFs||Traditional Fixed Income Mutual Funds||Individual Bonds|
|Final Distribution at Maturity|
|Exchange-Traded Liquidity & Transparency|
|Precise Maturity Profile|
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|Professional Portfolio Management|
Bonds generally present less short-term risk and volatility than stocks, the bond market is volatile and investing in bonds involves interest rate risk; as interest rates rise, bond prices usually fall, and vice versa. Bonds also entail issuer and counterparty credit risk, and the risk of default. Additionally, bonds generally involve greater inflation risk than stocks. Unlike individual bonds, bond funds have fees and expenses and most bond funds do not have a maturity date, so holding them until maturity to avoid losses caused by price volatility is not possible. Investors should talk with their advisors regarding their situation before investing.
ETFs disclose their full portfolio holdings daily.
Since ordinary brokerage commissions apply for each buy and sell transaction, frequent trading activity may increase the cost of ETFs.
Diversification does not guarantee a profit or eliminate the risk of loss.
Duration is a measure of the sensitivity of the price -- the value of principal -- of a fixed-income investment to a change in interest rates. Duration is expressed as a number of years.
The funds do not seek any predetermined amount at maturity, and the amount an investor receives may be worth more or less than the original investment. In contrast, when an individual bond matures, an investor typically receives the bond’s par (or face value).
There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks similar to those of stocks, including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply. The funds’ return may not match the return of the underlying index. The funds are subject to certain other risks. Please see the current prospectus for more information regarding the risk associated with an investment in the funds. • Investments focused in a particular sector are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments. • The funds are non-diversified and may experience greater volatility than a more diversified investment. • Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa. During the final year of the funds’ operations, as the bonds mature and the portfolio 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 bonds in the market. • An issuer may be unable or unwilling to meet interest and/or principal payments, thereby causing its instruments to decrease in value and lowering the issuer’s credit rating. • The risks of investing in securities of foreign issuers can include fluctuations in foreign currencies, political and economic instability, and foreign taxation issues. • Income generated from the funds is based primarily on prevailing interest rates, which can vary widely over the short- and long-term. If interest rates drop, the funds’ income may drop as well. During periods of rising interest rates, an issuer may exercise its right to pay principal on an obligation later than expected, resulting in a decrease in the value of the obligation and in a decline in the funds’ income. • An issuer’s ability to prepay principal prior to maturity can limit the funds’ potential gains. Prepayments may require the funds to replace the loan or debt security with a lower yielding security, adversely affecting the funds’ yield. • The funds currently intend to effect creations and redemptions principally for cash, rather than principally in-kind because of the nature of the funds’ investments. As such, investments in the funds may be less tax efficient than investments in ETFs that create and redeem in-kind. • Unlike a direct investment in bonds, the funds’ income distributions will vary over time and the breakdown of returns between fund distributions and liquidation proceeds are not predictable at the time of investment. For example, at times the funds may make distributions at a greater (or lesser) rate than the coupon payments received, 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 affect the tax characterization of returns, and the amount received as liquidation proceeds upon fund termination may result in a gain or loss for tax purposes. • During periods of reduced market liquidity or in the absence of readily available market quotations for the holdings of the fund, the ability of the fund to value its holdings becomes more difficult and the judgment of the sub-adviser may play a greater role in the valuation of the fund’s holdings due to reduced availability of reliable objective pricing data. • The values of junk bonds fluctuate more than those of high quality bonds and can decline significantly over short time periods.
Invesco Distributors, Inc. (“Invesco”) has been appointed as a marketing agent by Guggenheim Funds Distributors, LLC, (Guggenheim”) on behalf of the Guggenheim BulletShares 2025 High Yield Corporate Bond ETF. Invesco assists Guggenheim with certain functions and duties such as providing various educational and marketing activities on behalf of the Guggenheim BulletShares 2025 High Yield Corporate Bond ETF. Invesco will not open or maintain customer accounts or handle orders for the Fund. Invesco is an indirect, wholly-owned subsidiary of Invesco Ltd., and it is not affiliated with Guggenheim. The referenced fund is distributed by Guggenheim Funds Distributors, LLC. Guggenheim Investments represents the investment management business of Guggenheim Partners, LLC ("Guggenheim"), which includes Guggenheim Funds Investment Advisors ("GFIA"), the investment advisors to the referenced fund. Guggenheim Funds Distributors, LLC is affiliated with Guggenheim and GFIA.