3 High Yield Corporate Bond ETFs For 2012

By Gary Gordon: The S&P 500 set an all-time record high on 10/9/2007. Three weeks earlier, the iShares High Yield Corporate Bond Fund (HYG) had reached its pinnacle, and then promptly began falling from grace.

By Morningstar: By Michael Rawson, CFA

By Tom Lydon: Guggenheim Investments extended its BulletShares fund suite Wednesday, adding three more target-dated corporate bond exchange traded funds.

By John Spence: The largest exchange traded fund for “junk” bonds is on an eight-day winning streak, suggesting investors remain in a risk-on mindset. High-yield bond ETFs continue to rise despite growing calls the stock market needs to pull back or consolidate to digest some of the strong gains so far in 2012.

Shah Gilani submits: Junk bonds got issued at record rates in 2009 and again in 2010. And that pace has carried over into the New Year. While the ability to raise money in the less-than-investment- grade bond market indicates that the market is getting back to where it used to be, there are reasons to be worried.

ETF Database submits: Guggenheim, the Chicagoland-based ETF issuer known for its unique sector and international funds, continued the expansion of its fixed income lineup this week with the introduction of four more BulletShares ETFs. The new products will be the first target maturity date ETFs to offer exposure to junk bonds, providing investors with more precise instruments that can be used to fine-tune fixed income exposure.

Kevin Grewal submits: In an attempt to further broaden its arsenal of ETFs, Claymore Securities recently announced its plans to introduce nine target date high yield corporate bond ETFs with maturity dates ranging from 2012 to 2020. These junk bond ETFs are expected to replicate indexes which consist of high yield debt securities, maintain a target termination date and will gradually be converted to cash, with an ultimate distribution being made to shareholders at the maturity date.