Nasdaq launched eight new BulletShares indexes in early October, including one line focused on investment grade and the other on junk credits, with each line further divided into an ultra-short and short-term ladder. Each of the indexes also comes in a straight-return and total-return series.
The launch of the new indexes comes in the wake of a co-branding announcement in June between Nasdaq and Accretive Asset Management, the asset manager that created the BulletShares indexes.
The new indexes don’t have specific years attached to them because each is the basis for what amounts to a perpetual, or “laddered” bond portfolio. The ultra-short line is a zero- to three-year ladder, while the short extends to five years.
The new BulletShares indexes are equal-weighted and are rebalanced annually in December so that they have equal weightings across portfolio constituents.