Guggenheim BulletShares 2027 Corporate Bond ETF

NAV $19.13
Change $0.00 / 0.00%
As of 3/23/18

Market Close $19.19
Change $0.02 / 0.10%
As of 3/23/18

Investment Objective

Guggenheim BulletShares 2027 Corporate Bond ETF (BSCR) seeks investment results that correspond generally to the performance, before the fund’s fees and expenses, of an investment grade corporate bond index called the NASDAQ BulletShares® USD Corporate Bond 2027 Index.

Index Description

The NASDAQ Bulletshares® USD Corporate Bond 2027 Index is designed to represent the performance of a held-to-maturity portfolio of U.S. dollar-denominated investment-grade corporate bonds with effective maturities in the year 2027.

Fund Highlights

  • Bond-Like Experience in an ETF: Combines the benefits of bonds—monthly income, final distribution at maturity, as well as control of portfolio maturity, yield, and credit quality—with the advantages of ETFs—broad diversification, liquidity, transparency, convenience, and cost-effectiveness.
  • Precise Exposure: Provides targeted investment-grade exposure, enabling investors to build customized portfolios tailored to specific maturity profiles, risk preferences, and investments goals.
  • Ease of Use: Provides a cost-effective and convenient way to build bond ladders and manage interest rate risk, via fixed-income ETFs with consecutively maturing years ranging from 2018 to 2027.

The Fund has a designated year of maturity of 2027 and will terminate on or about December 31, 2027. In connection with such termination, the 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 Fund does not seek to return any predetermined amount at maturity. In the final twelve months of operation, as the bonds held by the Fund 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 Fund 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 Fund.

Top Fund Holdings

Security Name % of Net Assets
MICROSOFT CORP 3.3 2/6/2027 3.00%
TELEFONICA EMISIONES SAU 4.103 3/8/2027 2.53%
CITIGROUP INC 4.45 9/29/2027 2.05%
WELLS FARGO & COMPANY 4.3 7/22/2027 2.04%
VERIZON COMMUNICATIONS 4.125 3/16/2027 2.04%
APPLE INC 3.35 2/9/2027 1.98%
MORGAN STANLEY 3.625 1/20/2027 1.98%
GOLDMAN SACHS GROUP INC 3.85 1/26/2027 1.98%
MORGAN STANLEY 3.95 4/23/2027 1.97%
BECTON DICKINSON AND CO 3.7 6/6/2027 1.94%

Fund Profile

Fund Ticker BSCR
Exchange NYSE Arca
CUSIP 18386R205
Fund Inception Date 9/27/2017
Expected Termination Date 12/31/2027
Distribution Schedule (if any) Monthly
Gross Expense Ratio 0.24%
Net Expense Ratio 0.24%
Fiscal Year-End 5/31
Index Ticker BSCBR
Index Name NASDAQ BulletShares® USD Corporate Bond 2027 Index
Volume 0
Shares Outstanding 1,050,000
Total Assets $20,084,180
Investment Adviser Guggenheim Funds Investment Advisors, LLC
Distributor Guggenheim Funds Distributors, LLC

Net Asset Value (NAV)

NAV $19.13
Change $0.00 | 0.00%
52-Week High $20.07
52-Week Low $19.08

Market Close

Closing Price $19.19
Change $0.02 | 0.10%
52-Week High $20.12
52-Week Low $19.13
Bid/Ask Midpoint $19.15
Premium/Discount 0.10%

Fund Characteristics

Number of Securities 98
Average Duration 7.45
Average Maturity 8.96 years
Weighted Average Coupon 3.69

Current Distribution

Ex-Date 3/2/18
Record Date 3/6/18
Payable Date 3/8/18
Distribution per Share $0.038900

Index Methodology

NASDAQ BulletShares® USD Corporate Bond 2027 Index

BulletShares® USD Corporate Bond Indices measure the performance of maturity-targeted segments of the U.S. dollar-denominated investment grade corporate bond market. Set forth below are the criteria for determining the index family’s universe of eligible securities (the “Eligible Universe”) and the methodology for constructing each index. BulletShares® USD Corporate Bond Indices are owned by Guggenheim Index ServicesSM, an affiliate of Guggenheim Partners, and maintained by NASDAQ (the “Index Calculation Agent”). The BulletShares® methodology allocates bonds from the Eligible Universe into the BulletShares® Indices based on maturity, or in some cases effective maturity date.

Index Construction

BulletShares® USD Corporate Bond Indices
  1. Eligibility Criteria
    • Issuers. Only U.S. dollar-denominated bonds issued by companies domiciled in the U.S., Canada, Western Europe¹ or Japan are included in the Eligible Universe.
    • Types of Bonds. Bonds must pay fixed amounts of taxable interest to be included in the Eligible Universe. The following bond types are specifically included:
      • Fixed coupon bonds.
      • Callable bonds.
      • Step-ups, event-driven, rating-driven and registration-driven bonds.
      • Amortizing bonds and sinking funds with fixed sinking schedules.
    • Selection Criteria. Bonds must meet all of the following selection criteria to be included in the Eligible Universe:
      • Credit rating of at least BBB- from Standard and Poor’s or Fitch, or Baa3 by Moody’s.
      • Outstanding face value of at least $500 million (existing bonds in the eligible universe require $400 million face value to remain).
    • Exclusions. To ensure adequate investability, the following bond types are specifically excluded:
      • Non-SEC registered bonds (including Rule 144A bonds, Reg S bonds, private placements, Eurodollar² bonds and EuroMTN bonds).
      • Retail bonds.
      • Floating rate bonds.
      • Zero coupon bonds.
      • Convertible bonds.
      • Bonds cum or ex-warrant.
      • Bonds with one cash flow only.
      • New bonds that have already been called.
      • Inflation or other index-linked bonds.
      • Corporate bonds guaranteed by an agency, national or supranational government (including FDIC or TLGP).
      • Perpetual securities (including Trust Preferred).
      • Securities for which the Index Calculation Agent is unable to, or is prohibited from providing an evaluated price.
  2. Index Creation
    On a semi-annual basis (last business day of June and December), existing bonds in the Eligible Universe are distributed into BulletShares® USD Corporate Bond Indices in accordance with their effective maturities. If no embedded issuer call option exists, then effective maturity is the actual year of maturity. If a bond contains an embedded issuer call option with the first call date within 13 months of maturity and a par call price, then effective maturity shall be its actual year of maturity. In other cases, effective maturity shall be its actual year of maturity unless the yield to next call date is less than the yield to maturity, in which case its effective maturity shall be the year of the next call date.
  3. Target Weights
    BulletShares® USD Corporate Bond Indices employ a market value weighting methodology to weight individual positions, subject to a 5% limit on individual issuers in each index applied at each normal monthly rebalancing. Once set, target weights are free to float due to market actions. Weights are reviewed and the index rebalanced monthly.

¹Western Europe here includes: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, United Kingdom.

²Denoted by ISIN codes beginning with country codes other than “U.S.”

Risks and Other Considerations

Risk Considerations Investors should consider the following risk factors and special considerations associated with investing in the fund, 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 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. Credit/Default Risk: Issuers or guarantors of debt instruments or the counterparty to a repurchase agreement or loan of portfolio securities may be 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 generally have less credit risk than debt securities of non-government issuers. 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 fund’s income and share price. Asset Class Risk: The bonds in the fund’s 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 fund’s income. Extension Risk: An issuer may 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 fund’s performance may suffer from its inability to invest in higher yielding securities. Income Risk: Falling interest rates may cause the fund’s income to decline. Liquidity Risk: If the fund invests in illiquid securities or securities that become illiquid, fund returns may be reduced because the fund may be unable to sell the illiquid securities at an advantageous time or price. Declining Yield Risk: During the final year of the fund’s operations, as the bonds held by the fund mature and the fund’s portfolio transitions to cash and cash equivalents, the fund’s 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 fund and/or prevailing yields for bonds in the market. Fluctuation of Yield and Liquidation Amount Risk: The fund, unlike a direct investment in a bond that as 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 fund’s existence, it may make distributions at a greater (or lesser) rate than the coupon payments received on the fund’s portfolio, which will result in the fund 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 fund’s termination is higher or lower than your cost basis, you may experience a gain or loss for tax purposes. Financial Services Sector Risk: The financial services industries are subject to extensive government regulation, can be subject to relatively rapid change due to increasingly blurred distinctions between service segments, and can be significantly affected by availability and cost of capital funds, changes in interest rates, the rate of corporate and consumer debt defaults, and price competition. Consumer Discretionary Sector Risk: The success of consumer product manufacturers and retailers is tied closely to the performance of the overall domestic and international economy, interest rates, competitive and consumer confidence. Success depends heavily on disposable household income and consumer spending Concentration Risk: If the index concentrates in an industry or group of industries, the fund’s investments will be concentrated accordingly. In such event, the value of the fund’s shares may rise and fall more than the value of shares of a fund that invests in securities of companies in a broader range of industries. In addition, the funds are subject to: Non-correlation risk, Replication Management Risk, Issuer-Specific Changes and Non-Diversified Fund Risk. Please read the prospectus for more detailed Information regarding these and other risks.

Fund data is subject to change on a daily basis.

Composition is subject to change. Information provided is for illustration purposes only and may not reflect current investments by the fund. Referenced companies are not affiliated with Guggenheim Investments and Guggenheim Investments does not sponsor, endorse, sell or promote the referenced companies.

Performance displayed represents past performance, which is no guarantee of future results. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than original cost. Total returns reflect the reinvestment of all dividends. Current performance may be lower or higher than the performance data quoted. For up-to-date fund performance, including performance current to the most recent month-end, please visit the ETF performance page. ETFs are subject to third party transaction fees/commissions. Net asset value (NAV) is calculated by subtracting total liabilities from total assets, then dividing by the number of shares outstanding. Market close is the last price at which shares are traded. Fund shares may trade at, above or below NAV. For additional information, see the fund’s prospectus.

Read a prospectus and summary prospectus (if available) carefully before investing. It contains the investment objective, risks charges, expenses and the other information, which should be considered carefully before investing. To obtain a prospectus and summary prospectus (if available) click here or call 800.820.0888.

Investing involves risk, including the possible loss of principal.

Guggenheim Investments represents the investment management business of Guggenheim Partners, LLC ("Guggenheim"), which includes Security Investors, LLC ("SI"), Guggenheim Funds Investments Advisors, LLC ("GFIA") and Guggenheim Partners Investment Management ("GPIM") the investment advisors to the referenced funds.

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