Exchange traded fund (
) investors looking for exposure to more high-quality U.S.
corporate bonds will soon have a new corporate bond ETF available
to play with.
has begun the necessary paperwork with the Securities and Exchange
Commission to launch the new ETF.
Claymore BulletShares 2014 Corporate Bond ETF (
will try to reflect the investment results that correspond to the
performance of an investment- grade corporate bond index called the
BulletShares USD Corporate Bond 2014 Index,
according to ETF Daily News
. The fund will have an expense ratio of 0.24%.
The 2014 Index is a rules-based index made up of around 187
investment-grade corporate bonds that mature on or about Dec. 31,
2014. The fund will make a cash distribution to then-current
shareholders after accounting for any liabilities of the fund.
During the last year, as bonds mature, the fund's portfolio will
switch to cash and cash equivalents.
Around 80% of the fund's total assets will be in component
securities in the 2014 index and other investments that are
substantially identical to component securities.
The Trust's Board of Trustees may change the termination date to
an earlier or later date if the changes are deemed best for the
fund. The Board may also change the fund's investment strategy and
other policies without shareholder approval.
BSCE will utilize a sampling approach - the investment advisor
will use quantitative analysis to select a sample of securities
that resemble the Index. Additionally, securities may be removed or
added to more accurately mirror the Index.
The increasingly popular small-cap asset class should also get
some new players this year.
will launch at least three more small-cap ETFs before the years'
The new funds will track the economies of Hong Kong and Singapore,
as well as a small-cap equity-based agribusiness fund.
According to NASDAQ
, the country-specific ETFs focus on the bottom 15% of companies in
terms of market capitalization. [
New Single-Country ETFs.
The planned small-cap commodity ETF will zero in on natural gas,
crude oil and gold, in addition to agribusiness-also will give
investors access to smaller companies that represent real growth
around the world. [
Small-Cap ETFs Are Making a Comeback.
When all is said and done, IndexIQ hopes to have a total of 13
small-cap ETFs. The remainder are anticipated to come to market
next year. [
Other Countries IndexIQ Covers.
For more stories about new ETFs, visit our
new ETFs category
. For more information on corporate bonds, visit our
corporate bonds category
Max Chen and Tisha Guerrero contributed to this article.