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Asset-Backed Opportunity: The Case For GISC

BY | ETF Database
6:32 am ET 11/03/26 | 12 VIEWS
Naturally, investors that are trying to build a more balanced fixed income portfolio will look to invest in a variety of different fixed income strategies. That may include investing in asset-backed securities (ABS).Key Takeaways: Given the current fixed income environment and interest rate cycle, building a balanced income portfolio can be advantageous. Asset-backed securities (ABS) offer plenty of value, due to perks like deep income potential, structural protections, and more. Investors can leverage the benefits of an actively managed ABS approach through the Guggenheim Securitized Income ETF (GISC) Asset-backed securities can offer plenty of compelling investment advantages over traditional bond approaches. To start, a disciplined ABS portfolio may be able to tap into stronger income opportunities than one is able to achieve with investment-grade bonds. Furthermore, asset-backed securities offer defensive potential through structural protections and interest rate hedging. Of course, the crucial question is: what asset-backed securities should investors be interested in? Recently, the team at Guggenheim Investments explored this topic in their Fourth Quarter 2026 Fixed-Income Sector Views. See More: Blend Market Upside & Defensive Yield With Equity Income As the report noted, ABS credit spreads have tightened as of late, due to broader market rally. In response, Guggenheim advised investors to be selective when choosing ABS to invest in. “We continue to prefer senior commercial ABS backed by durable, cash-generative assets, including franchise royalties, fiber networks, and aircraft,” the Guggenheim team added. “Within consumer ABS, we see value in subsectors such as home improvement loans, where stronger borrower profiles, amortization, and credit enhancement provide downside protection. In digital infrastructure, we remain selective as heavy capital spending drives elevated issuance and new capacity.” See More: Tackle CLO Momentum With Actively Managed CLO ExposureGISC: The Guggenheim Take on Structured CreditFor those looking for a vehicle to tap into Guggenheim’s approach to structured credit, the Guggenheim Securitized Income ETF (GISC) can help. GISC is an actively managed fund from Guggenheim that invests in a variety of different securities within the structured credit markets, including ABS, mortgage-backed securities (MBS), and collateralized loan obligations (CLOs). Active management can be very advantageous within the fixed income market, especially given the current interest rate environment we find ourselves in. The Guggenheim team can leverage its knowledge to opportunistically chase yield in advantageous moments, or play defense when needed. The end result is a fund that is providing extremely compelling yield, befitting a strategy that invests in asset-backed securities. As of September 30, 2026, GISC has a 30-day SEC yield of 6.27%. For more news, information, and analysis, visit the Fixed Income Content Hub.

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