1. Home
  2. Fixed Income
  3. Enhanced Short Duration ETF

Guggenheim Enhanced Short Duration ETF (GSY)

Guggenheim Enhanced Short Duration ETF (GSY) seeks maximum current income, consistent with preservation of capital and daily liquidity. GSY holds a diversified portfolio of varying maturities, with an average duration of less than one year.

Fund Highlights and Applications

  • Actively managed approach may offer enhanced yield opportunities within a risk-managed approach.
  • Can be used for tactical cash positions to deliver potentially greater return than cash as well as liquidity for non-immediate needs.
  • May provide flexibility to invest in floating rate securities, which re-set based on current interest rates, strategically positioning the fund for a changing interest rate environment.

Active ETFs: The Benefits of ETFs Combined with Active Management

An actively managed ETF combines the benefits of the ETF structure with the dynamics of an actively managed strategy. The results is a transparent, diversified and liquid investment product blended with portfolio management expertise. An active ETF doesn’t just seek to match its benchmark, it strives to outperform it, while also seeking to mitigate risk.

Active ETFs

Portfolio Management Team

  • B. Scott Minerd, Chairman of Investments and Global Chief Investment Officer
  • Anne B. Walsh, CFA, JD Senior Managing Director and Assistant Chief Investment Officer
  • James W. Michal, Managing Director and Portfolio Manager
  • Steven H. Brown, CFA, Director, Portfolio Manager

Overall Morningstar Rating™

4 Stars

This fund was rated, based on its risk-adjusted returns, 5 stars for 3 years, 4 stars for 5 years, and 4 stars Overall out of 7, 5, and 7 Ultrashort Bond funds, respectively. As of 9.30.2016.



Access Exclusive Financial Professional Resources

Explore content for financial professionals only, including:

  • Market Perspectives
  • Portfolio Strategy
  • Sector Reports


ETF Yield Email Subscription

*Morningstar category is based on the underlying securities of the ETF and not the objective. The Morningstar Rating™ is provided for those exchange-traded funds ("ETFs") with at least a three-year history. Ratings are based on the ETF’s Morningstar Risk-Adjusted Return measure which accounts for variation in monthly performance, placing more emphasis on downward variations and rewarding consistent performance. An ETF’s risk-adjusted return includes a brokerage commission estimate. This estimate is intended to reflect what an average investor would pay when buying or selling an ETF. PLEASE NOTE, this estimate is subject to change and the actual brokerage commission an investor pays may be higher or lower than this estimate. Morningstar compares each ETF’s risk-adjusted return to the open-end mutual fund rating breakpoints for that category. Consistent with the open-end mutual fund ratings, the top 10% of ETFs in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. The overall rating for an ETF is based on a weighted average of the timeperiod ratings (e.g., the ETF’s 3-, 5-, and 10-year rating). The determination of an ETF’s rating does not affect the retail open end mutual fund data published by Morningstar. Past performance is no guarantee of future results.

© 2016 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Past performance is no guarantee of future results.

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. Investment Risk: An investment in the fund is subject to investment risk, including the possible loss of the entire principal amount that you invest. 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. 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. Income Risk: Falling interest rates may cause the fund’s income to decline. Municipal Securities Risk: Municipal securities are subject to the risk that litigation, legislation or other political events, local business or economic conditions or the bankruptcy of the issuer could have a significant effect on an issuer’s ability to make payments of principal and/or interest. Asset-Backed and Mortgage-Backed Securities Risk. Investors in ABS, including MBS and structured finance investments, generally receive payments that are part interest and part return of principal. These payments may vary based on the rate at which the underlying borrowers pay off their loans. Some asset-backed securities, including mortgage-backed securities, may have structures that make their reaction to interest rates and other factors difficult to predict, making their prices very volatile and they are subject to liquidity risk. High-Yield Securities Risk: High yield securities generally offer a higher current yield than that available from higher grade issues, but typically involve greater risk. Securities rated below investment grade are commonly referred to as “junk bonds.” The ability of issuers of high yield securities to make timely payments of interest and principal may be adversely impacted by adverse changes in general economic conditions, changes in the financial condition of the issuers and price fluctuations in response to changes in interest rates. Foreign Issuers Risk: The fund may invest in U.S. and non-U.S. dollar-denominated bonds of foreign corporations, governments, agencies and supra-national agencies which have different risks than investing in U.S. companies. Emerging Markets Risk: Investment in securities of issuers based in developing or “emerging market” countries entails all of the risks of investing in securities of non-U.S. issuers, as previously described, but to a heightened degree. 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. Portfolio Turnover Risk: The fund may engage in active and frequent trading of its portfolio securities in connection with the rebalancing of the index, and therefore the fund’s investments. Management Risk: The fund is subject to management risk because it is an actively managed portfolio. In managing the fund’s portfolio securities, the Investment Advisor will apply investment techniques and risk analyses in making investment decisions for the fund, 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 fund is not an index fund. The fund is actively managed and does 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 fund is subject to additional risks and other considerations not mentioned above.

Please read the prospectus for additional information. As with any investment, you should consider how your investment will be taxed. The tax information contained in the prospectus is provided as general information. Investors should consult their own tax professional about the tax consequences of an investment as Guggenheim Funds Distributors, LLC does not offer tax advice.

Read the fund’s prospectus and summary prospectus (if available) carefully before investing. It contains the fund’s investment objectives, risks, charges, expenses and 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.

©2016 Guggenheim Investments. All Rights Reserved.

• Not FDIC Insured • No Bank Guarantee • May Lose Value

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.