Products June 2, 2011

Guggenheim Launches Actively Managed Fixed-Income ETFs

Guggenheim Funds Distributors is bringing to market two actively managed exchange-traded funds (ETFs), which seek to offer access to the fixed income marketplace.
Reported by

The Guggenheim Enhanced Core Bond ETF seeks total return comprised of income and capital appreciation. The fund will normally invest at least 80% of its net assets in fixed income securities and will attempt to outperform the Barclays Capital U.S. Aggregate Bond index.  

The Guggenheim Enhanced Ultra-Short Bond ETF seeks maximum income, consistent with preservation of capital and daily liquidity. It will normally invest at least 80% of its net assets in fixed income securities. The fund uses a low duration strategy to seek to outperform the 1-3 Month Treasury Bill Index in addition to providing returns in excess of those available in U.S. Treasury bills, government repurchase agreements, and money market funds. The fund is not a money market fund and thus does not seek to maintain a stable net asset value of $1.00 per share, the company said.

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“These new actively managed funds combine the benefits of active management—including a rigorous, risk-managed security selection process and the potential to outperform a benchmark index—with the multi-faceted advantages of the ETF structure,” said Steve Baffico, Senior Managing Director. 

The Markets June 2, 2011

Investors Put More into Equities

Stock and bond funds experienced net inflows of $44.7 billion in April, according the Financial Research Corporation.
Reported by

Equity objective posted a net inflow of $15.4 billion, followed by the corporate objective with $14 billion, and international/global equity with $13 billion. The tax-free bond objective had a net outflow of $3.4 billion.  

By Morningstar category, Diversified Emerging Markets topped the list with a net $4.7 billion gain, followed closely by Intermediate-Term Bond with $4.4 billion and Large Blend with $4.3 billion.  

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State Street’s SPDR S&P 500 ETF attracted $2.7 billion to lead the fund sales chart. The Powershares QQQ Trust 1 fund ($2.1 billion), BlackRock’s iShares MSCI Emerging Market ($1.8 billion), Templeton Global Bond ($1.7 billion), and Vanguard Total Stock Index ($1.5 billion) rounded out the top five best selling funds for April.

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