Guggenheim Bullet Shares

[Scubablue]

Greetings- Will have some CDs maturing shortly and am rather intrigued by the Guggenheim Bullet Shares as a reinvestment option. Was curious if anyone has any practical experience with them and especially if investors were taking the monthly distributions or reinvesting them? Thanks!

 

[REWahoo]

Check out this thread and the links within: http://www.early-retirement.org/forums/f26/target-maturity-bond-etfs-64719.html

 

[haha]

Greetings- Will have some CDs maturing shortly and am rather intrigued by the Guggenheim Bullet Shares as a reinvestment option. Was curious if anyone has any practical experience with them and especially if investors were taking the monthly distributions or reinvesting them? Thanks!

There is another recent thread about these, in which various people go over important aspects, They are very intriguing, but to me at least it appears that none of them yet has adequate liquidity.

Ha

 

[RockyMtn]

I have the 14, 15, and 16 funds. Take the distributions monthly...don't reinvest. Sold out of some bond funds with longer average duration and went shorter using these funds. No commission trades on Schwab.

 

[MichaelB]

Another thread, the one I think mr. Ha is referring to http://www.early-retirement.org/forums/f28/bond-ladder-etfs-66901.html

 

[Scubablue]

Thanks for the quick responses! Seems a lot of folks are intrigued by these especially once ER'd and preservation of capital becomes all the more important.

 

[pb4uski]

I liquidated some of my bond mutual funds and have bought some of both the corporate and high yield versions maturing in 2017-2020. It is way too early to give a view on them as I have only held them a couple months.

I'm not reinvesting distributions.

Rightly or wrongly, I am viewing these as a CD substitute since I intend to hold them to maturity. I recognize that if I want out early and rates have increased that I will take a hit on the market value and I also recognize the default risk associated with them vs FDIC insured CDs.

 

[ERhoosier]

I may have missed it, but wasn't there a 2012 maturity ETF (or CEF)? How did that wind-up go for investors?

 

[pb4uski]

I may have missed it, but wasn't there a 2012 maturity ETF (or CEF)? How did that wind-up go for investors?

See ETFs | Guggenheim Investments

The one thing about these that I am not keen on is that as the bonds mature in the maturity year they keep the maturity proceeds until the end of the year and in the interim you earn only money market rates, so I'll explore selling six months to a year prior to the terminal distribution.

 

[aja8888]

I have the 14, 15, and 16 funds. Take the distributions monthly...don't reinvest. Sold out of some bond funds with longer average duration and went shorter using these funds. No commission trades on Schwab.

Curious, it sounds like you can reinvest the dividends into more shares, correct? I may have a look at the high yield ones if offered by Schwab.

 

[RockyMtn]

See ETFs | Guggenheim Investments

The one thing about these that I am not keen on is that as the bonds mature in the maturity year they keep the maturity proceeds until the end of the year and in the interim you earn only money market rates, so I'll explore selling six months to a year prior to the terminal distribution.

This is true. For instance the 2013 Bulletshares corporate bond is already 99% in cash so very little interest next five months. I like the idea of selling mid year of the year of maturity.

 

[aja8888]

This is true. For instance the 2013 Bulletshares corporate bond is already 99% in cash so very little interest next five months. I like the idea of selling mid year of the year of maturity.

Thanks, I need to look into these ETF's.