What are BulletShares Indexes?
BulletShares® Overview
Income is an essential component of many client portfolios. And when that income is intended to meet cash flow needs, the tools and planning can get complicated. These tools empower investors with the flexibility to choose maturities, ladder investments, and determine their appropriate risk exposure all while maintaining liquidity and transparency.
The Bulletshares Indexes track performance of an investment in a diversified, held-to-maturity portfolio of fixed income securities with a common year of maturity.
Accretive Asset Management developed the BulletShares® methodology in 2009 with the objective of combining the benefits of individual bonds and bond funds. Each BulletShares index represents a specific year of maturity and terminates after the bonds in its portfolio mature.
Investors can use products based on BulletShares Indexes like they use individual bonds, whether building traditional bond ladders or constructing more sophisticated portfolios designed to meet future cash flow needs. These indexes are the foundation for bond funds that act like bonds.
BulletShares®-Based Products
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Nasdaq BulletShares Ladder Indexes provide access to BulletShares exchange-traded funds (ETFs). The indexes can serve as benchmarks to the standard laddered strategy utilized by investment professionals and retail investors.
The Indexes are equal weighted and use Guggenheim BulletShares ETFs to track defined maturity targets of 0-3 years and 0-5 years of the investment grade and high yield corporate bond markets. Each BulletShares Ladder Index rebalances annually in December to reinvest the proceeds of maturing BulletShares ETFs in the next eligible BulletShares ETF, so that the index has an equal weighting across constituents. Nasdaq BulletShares Ladder Indexes are traditional bond ladders implemented through target maturity bond ETFs.
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Nasdaq BulletShares USD Corporate Bond Indexes measure the performance of maturity-targeted segments of the U.S. investment - grade corporate bond market.
The methodology allocates bonds from the universe of eligible securities into indexes based on maturity, or in some cases anticipated effective maturity date.
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Nasdaq BulletShares USD High Yield Corporate Bond Indexes measure the performance of maturity-targeted segments of the U.S. high yield corporate bond market.
The methodology allocates bonds from the universe of eligible securities into indexes based on maturity, or in some cases anticipated effective maturity date.
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Nasdaq BulletShares® Features
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Diversification
BulletShares-based products are well-diversified portfolios of individual bonds allowing Advisors and their clients to reduce the impact of concentration risk in their portfolios.
Diversification
BulletShares-based products are well-diversified portfolios of individual bonds allowing Advisors and their clients to reduce the impact of concentration risk in their portfolios.