Guggenheim Returns to ETFs with Two Active Bond Funds

Guggenheim Investments on June 15 launched two actively managed fixed-income exchange-traded funds: the Guggenheim Securitized Income ETF (GISC), which focuses on structured credit, and the Guggenheim Ultra Short Income ETF (GCSH), a low-duration investment-grade fund.

GISC carries a net expense ratio of 47 basis points (0.47%). The fund seeks to deliver high income and potential total return by investing across structured credit markets. Holdings may include collateralized loan obligations, mortgage-backed securities, asset-backed securities and other structured instruments.

GCSH has a net expense ratio of 0.25% and aims to generate dynamic income while preserving capital by keeping average portfolio duration at one year or less. The fund can invest in a range of investment-grade debt, including corporate bonds, U.S. government securities, sovereign debt, mortgage- and asset-backed securities and municipal bonds.

The launches add actively managed fixed-income ETFs to Guggenheim’s product lineup and represent the firm’s return to the exchange-traded product market after selling its prior ETF business to Invesco in 2017 for $1.2 billion. Guggenheim was the original sponsor of the Invesco S&P 500 Equal Weight ETF (RSP) before that sale.

Dina DiLorenzo, president and head of Guggenheim Investments, described the return to the ETF market as “a natural extension of Guggenheim’s commitment to delivering innovative investment solutions,” and added the firm intends to grow in the ETF segment.

Regulatory filings and fund documents list portfolio limits and risks, including credit and liquidity risks tied to structured securities and interest-rate and credit exposures in short-term debt. Fund materials provide further details on holdings, portfolio construction and risks for advisers and investors evaluating the funds as sources of income and short-duration cash alternatives.