Claymore adds two laddered bond ETFS

Claymore is adding two more ETFs to its portfolio: the Claymore 1-10 Yr Laddered Government Bond ETF and the Claymore 1-10 Yr Laddered Corporate Bond ETF.

According to Claymore, together they are among the lowest cost bond funds in Canada, in their respective fixed income category. The laddered strategy allocates the capital of the funds over the staggered maturity dates of the securities in their respective portfolios.

“When it comes to bond investing, we believe that a laddered bond strategy remains one of the best ways to passively own bonds,” said Som Seif, president and CEO of Claymore Investments, Inc.

The Claymore 1-10 Yr Laddered Government Bond ETF seeks investment results that correspond generally to the price and yield (before fees and expenses) of the DEX 1-10 Year Laddered Government Bond Index. The fund will hold constituent securities of the DEX 1-10 Year Laddered Government Bond Index in substantially the same proportion as they are reflected in that index.

The portfolio will consist primarily of semi-annual pay fixed rate government bonds issued domestically in Canada and denominated in Canadian dollars with an investment grade rating and a remaining effective term to maturity of between zero and ten years. The management fee will be 0.15%, similar to the Claymore 1-5 Yr Laddered Government Bond ETF.

The Claymore 1-10 Yr Laddered Corporate Bond ETF seeks investment results that correspond generally to the price and yield (before fees and expenses) of the DEX 1-10 Year Laddered Corporate Bond Index. It will hold constituent securities of the DEX 1-10 Year Laddered Corporate Bond Index in substantially the same proportion as they are reflected in that index.

The portfolio will consist primarily of semi-annual pay fixed rate corporate bonds issued domestically in Canada and denominated in Canadian dollars with an investment grade rating and a remaining effective term to maturity of between zero and ten years. The management fee will be 0.25%, similar to the Claymore 1-5 Yr Laddered Corporate Bond ETF.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.