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Guggenheim Returns to ETF Market With Two New Income Funds

On Monday, June 15, Guggenheim Investments debuted a pair of new fixed income ETFs. Each of these new funds offers an active take on the fixed income space. This may help investors looking to amplify portfolio yield.Key Takeaways: Guggenheim Investments has launched two new funds, which both offer active takes on income strategies. The Guggenheim Securitized Income ETF (GISC) focuses on structured credit, while the Guggenheim Ultra Short Income ETF (GCSH) offers a path to low-duration income. This marks a notable return to the ETF space for Guggenheim, after Invesco bought their ETF suite for $1.2 billion back in 2017. The first fund on the docket is the Guggenheim Securitized Income ETF (GISC). GISC offers a net expense ratio of 47 basis points. The fund looks to provide high income along with the potential for strong total return.  Primarily, GISC aims to find income and total return by investing across the structured credit markets. This includes investing in CLOs, mortgage-backed securities, and asset-backed securities, among others.  See More: Space Stock Surge: Industrials Offer a Diversified PlayThe Advantages of Short-Duration IncomeMeanwhile, the Guggenheim Ultra Short Income ETF (GCSH) takes a different approach to building income. GCSH has a net expense ratio of 0.25%, and seeks to generate dynamic income that is consistent with preservation of capital.  To do so, the fund invests in investment-grade debt securities with an average duration no longer than one year. It can invest in a variety of vehicles, such as corporate bonds, U.S. government-issued securities, sovereign debt securities, mortgage-backed securities, asset-backed securities, municipal bonds, and more. This approach can help the fund serve as a compelling cash alternative.  See More: S&P Shake-Up: Marvell Technology & Flex to Join the S&P 500 “Our return to the ETF market is a natural extension of Guggenheim’s commitment to delivering innovative investment solutions,” added Dina DiLorenzo, President and Head of Guggenheim Investments. “GISC and GCSH provide investors with access to the active fixed-income capabilities that have long been a cornerstone of our platform, while positioning us for continued growth in one of the industry’s fastest-growing segments.” See More: Boomer Retirement Wave Impacts Muni Bonds As DiLorenzo noted, GISC and GCSH are not the first funds that Guggenheim has piloted on the market. Guggenheim has been involved with a variety of other ETFs in the past, and was the original owner of the Invesco S&P 500 Equal Weight ETF (RSP B+) before Invesco bought Guggenheim’s ETF business out for $1.2 billion back in 2017. Guggenheim’s return to the ETF scene marks an exciting moment for the firm, and may be worth advisors and investors keeping a close eye on in the days to come.  For more news, information, and analysis, visit the Fixed Income Content Hub.

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