BSJG Fund Description

The Guggenheim BulletShares 2016 High Yield Corporate Bond ETF tracks a market value-weighted index of high yield corporate bonds with effective maturities in 2016.

BSJG ETF.com Insight

As part of Guggenheim’s BulletShares suite, BSJG behaves more like a bond than a typical bond fund. The fund provides bullet maturity—in this case Dec. 31, 2016—instead ofAs the fund matures, its maturity, duration and YTM will decline perpetual exposure to a maturity pocket of the US high yield market. As the fund matures, its maturity, duration and YTM will continue to decline. On its target date, BSJG will unwind and return all capital to investors. This structure permits BSJG to be used as a building block for a bond ladder. The fund charges a reasonable fee but struggles in tracking its index, increasing its true holding cost. BSJG trades with adequate liquidity given that it’s built to be held, not traded actively. In all, the fund provides a viable means to access a diverse pool of US high yield bonds while mimicking the life cycle of an individual bond. (Insight updated 06/30/2014)

1 Year
Performance [as of 10/17/14] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years
BSJG -0.91% -1.25% 0.90% 2.66% -- -- --
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

BSJG Top 10 Countries

BSJG Top 10 Sectors

BSJG Top 10 Holdings

BSJG Summary Data

Guggenheim

A company that produces and manages ETFs.

04/25/12

The first date of a fund's operations, as documented by the issuer.

Open-Ended Fund

The organizational structure of the fund or ETN.

0.42%

The net total annual fee a fund holder pays to the issuer.

$630.94 M

The market value of total assets that a fund has accumulated and now manages on behalf of investors.

$3.67 M

It is the daily dollar value of shares traded, averaged over the past 45 trading days.

0.08%

The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 60 days, as a percent.

BSJG Portfolio Data

2.7

Price sensitivity in percentage to a 100 basis point parallel shift (up or down) in interest rates.

4.9 Years

The weighted average of remaining time until maturity for all securities in the portfolio.

6.18%

The weighted average yield if all securities in the portfolio were held until maturity. Assumes that interest can be reinvested at YTM rate.

11/03/14

The date on which a security's price excludes an upcoming dividend.

130

The number of securities held in the fund as of ETF.com’s analysis date, based on issuer portfolios or the creation basket. If an ETF holds other ETFs, we count every constituent, looking through the ETF wrapper.

BSJG Index Data

BulletShares USD High Yield Corporate Bond 2016 Index

This is the benchmark an ETF is desigend to track or replicate.

Market Value

A set of rules that the underlying index provider follows to weight its constituent securities.

Maturity

A set of rules that the underlying index provider follows to select its constituent securities.

BC US High
Yield 350M Cash Pay 0-5Y 2% Cap Index

This is the index that we have chosen as the best-in-class gauge for each segment's broad market.

Related ETFs to BSJG

BSJF

ETFs from within the same segment or closely related segments with similar investment objectives or market exposures.

BSJG ETF.com Efficiency Insight

BSJG charges 42 bps, same as the rest of Guggenheim’s BulletShares suite. However, the fund struggles in tracking its index consistently–its tracking error is several times its stated fees at times. The growing asset base is enough to ward off any closure risk prior to its planned liquidation date. (Insight updated 06/30/2014)

Total Return - 09/30/2014
Performance [as of 09/30/14] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years
BSJG -1.41% -1.92% 1.12% 3.91% -- -- --
BSJG (NAV) -1.52% -1.70% 1.33% 4.18% -- -- --
BulletShares USD High Yield Corporate Bond 2016 Index -1.42% -1.72% 1.37% 3.95% 9.82% -- --
BC US High Yield 350M Cash Pay 0-5Y 2% Cap Index -1.48% -1.58% 1.42% 4.20% -- -- --
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

BSJG Portfolio Management

0.42%

The net total annual fee a fund holder pays to the issuer.

0.02%

Compares returns of the fund's NAV to its underlying index for a daily series of overlapping 12 month periods. The median is the middle value of the results.

0.87%

Largest deviation in a positive direction of a fund's returns vs. its underlying index over the past 12 months.

-0.90%

Largest deviation in a negative direction of a fund's returns vs. its underlying index over the past 12 months.

BSJG Tax exposures

20.00% / 39.60%

The maximum long-term and short-term U.S. tax rates applicable to a realized capital gain.

--

The average capital gains paid out to shareholders in the past 36 months, measured as a percent of net asset value (NAV) at the time.

N/A

IRS treatment of the majority of the fund's distributions.

No

ETFs that are structured as commodities pools and classified as limited partnerships by the IRS will issue K-1 forms to holders.

BSJG Fund Structure

Open-Ended Fund

The organizational structure of the fund or ETN.

No

An indicator of whether a fund uses over-the-counter derivatives such as swaps or forwards to achieve its objectives.

Yes

An indicator of whether or not a fund actively lends its portfolio holdings.

100% / 0%

The division of securities lending revenue between the fund and the issuer.

N/A

The institution responsible for providing the return of the stated index and whose credit is the sole backing of the ETN.

N/A

The risk of default by the ETN counterparty.

Low

The likelihood that an issuer will shut down a fund for business or regulatory reasons.

Daily

The frequency of an issuer's disclosure of all fund holdings.

BSJG ETF.com Tradability Insight

BSJG isn't designed for active trading since target-maturity ETFs are built to be held to maturity. This means that liquidity is important but not mission critical. Trading volume and spreads matter, but investors might only need to trade once to buy in (and then wait for liquidation) which effectively cuts trading spreads in half. For larger investors, creation/redemption can move the prices adversely due to poor underlying liquidity in the high yield bond space. Institutions should work with market makers for block trades. (Insight updated 06/30/2014)



Average Spread
Premium/Discount
Volume

BSJG ETF.com/ Block LiquidityAs of 10/20/2014

5
4
3
2
1

This measurement shows how easy it is to trade 25,000 shares of BSJG. BSJG is rated a 2 out of 5.

BSJG Tradability

137,187

It is the daily number of shares traded, averaged over the past 45 trading days.

$3.67 M

It is the daily dollar value of shares traded, averaged over the past 45 trading days.

110,104

Median number of shares traded over the past 45 trading days.

$2.94 M

Median dollar value of shares traded over the past 45 trading days.

0.08%

The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 45 days, as a percent.

$0.02

The difference between the highest and lowest posted prices for an ETF, averaged over the past 45 days, in dollars.

0.29%

The middle value in the ranked set of all premium/discount values over a maximum 12-month period.

0.52% / -0.56%

The greatest amount that the market price exceeded (premium) and fell below (discount) its fair value/net asset value (NAV) over a maximum 12-month period.

None

This flags whether there is currently a systemic issue that has restricted the ability to create or redeem shares of the fund. This may be imposed by the fund's issuer, or by external circumstances.

100.00%

The percent of time that the underlying securities of an ETF are open to trading while US exchanges are open.

100,000

The smallest block of ETF shares that an Authorized Participant can either create or redeem at net asset value (NAV) with the issuer in exchange for the underlying shares of the fund.

1.10

The median 45 day share volume divided by the creation unit size of the fund. The higher the number, the more likely that liquidity providers will trade the fund in size, or in odd lots.

0.02%

The standard fee to create or redeem 1 creation unit of an ETF as a percentage of the dollar value of 1 creation unit.

--

The total number of net outstanding options contracts for an ETF.

$26.51

The total market value of the assets that an ETF holds less fund expenses.

2

An estimate of liquidity for the underlying baskets of securities, scaled 1 to 5.

BSJG ETF.com Fit Insight

Unlike perpetual maturity bond funds, BSJG provides bullet maturity exposure. The fund is designed to unwind and return all capital in Dec 2016, just like an individual bond. As the fund approach its target date, its maturity, duration, and YTM will continue to decline. (Any exposure to bonds outside of its target maturity are callable bonds expected to be called away prior to fund’s target maturity date.) The fund is on track to provide the target maturity it promises. (Insight updated 06/30/2014)

BSJG Sector/Industry Breakdown

BSJG Segment Benchmark
79.33% 84.84%

5.86% 10.54%

14.81% 4.62%

BSJG Top 5 Countries

79.89% 90.93%

4.73% 3.08%

1.46% 1.32%

1.44% 1.28%

0.17% 1.19%

BSJG Top 5 Currencies

100.00% 100.00%

100.00% 100.00%

BSJG Performance Statistics

0.18

The degree to which the fund and its segment benchmark move up and down in unison.

1.14

The sensitivity of the returns of the fund to the movement of the ETF.com segment benchmark. Beta of 1.0 means magnitude of fund returns equals that of IU benchmark returns.

1.31

The comparison of a fund's return to our benchmark's for days when the benchmark is up. Ideally down beta is less than up beta while beta of 1.0 means they're equal.

1.10

The comparison of a fund's return to our benchmark's for days when the benchmark is down. Ideally down beta is less than up beta while beta of 1.0 means they're equal.

0.21%

A measure of the variability between the fund's returns and the ETF.com segment benchmark returns on days when the fund underperforms the benchmark.

BSJG Holdings Statistics

BSJG Segment Benchmark
3.41 4.86

The weighted average of remaining time until maturity for all securities in the portfolio.

2.42 2.71

A measure of interest rate risk. Estimates change in value to the portfolio based on a 1% parallel shift in the yield curve.

0.33 0.49

A measure of interest rate risk. Estimates the portfolio's sensitivity to changes in 2 year interest rates holding other rates constant.

0.00 0.01

A measure of interest rate risk. Estimates the portfolio's sensitivity to changes in 10 year interest rates holding other rates constant.

6.28% 6.18%

The weighted average yield if all securities in the portfolio were held until maturity. Assumes that interest can be reinvested at YTM rate.

2.39 2.68

Price sensitivity in percentage to a 100 basis point change (widening or narrowing) of spread relative to Treasury spot curve.

Low Low

The Herfindahl Index number – a metric of portfolio concentration where higher numbers mean higher concentration of holdings.

509 130

The number of securities held in the fund as of ETF.com’s analysis date, based on issuer portfolios or the creation basket. If an ETF holds other ETFs, we count every constituent, looking through the ETF wrapper.

B B

Market–value–weighted average credit quality of the portfolio.

BSJG Maturity Distribution

7.09% 1.52%

Percent of the portfolio's exposure to securities with 0 - 1 years until maturity.

22.56% 27.16%

Percent of the portfolio's exposure to securities with 1 - 3 years until maturity.

70.35% 1.42%

Percent of the portfolio's exposure to securities with 3 - 5 years until maturity.

0.00% 66.18%

Percent of the portfolio's exposure to securities with 5 - 7 years until maturity.

0.00% 3.72%

Percent of the portfolio's exposure to securities with 7 - 10 years until maturity

0.00% 0.00%

Percent of the portfolio's exposure to securities with 10+ years until maturity.

BSJG Credit Breakdown

0.00% 0.00%

Percent of portfolio's exposure to AAA rated bonds (Investment Grade).

0.00% 0.00%

Percent of portfolio's exposure to AA rated bonds (Investment Grade).

0.00% 0.00%

Percent of portfolio's exposure to A rated bonds (Investment Grade).

0.82% 0.01%

Percent of portfolio's exposure to BBB rated bonds (Investment Grade).

40.35% 34.93%

Percent of portfolio's exposure to BB rated bonds (High Yield).

40.17% 44.15%

Percent of portfolio's exposure to B rated bonds (High Yield).

17.31% 20.77%

Percent of portfolio's exposure to CCC rated bonds (High Yield).

0.46% 0.14%

Percent of portfolio's exposure to CC rated bonds (High Yield).

0.33% 0.00%

Percent of portfolio's exposure to C rated bonds (High Yield).