The Guggenheim Securitized Income ETF (GISC) provides investors with exposure to a diversified portfolio of securitized assets. According to the report, a complexity premium is the additional return that investors demand for holding instruments that are structurally complex, difficult to value, or harder to trade.
Credit quality ratings are measured from AAA (highest) to D (lowest) by a Nationally Recognized Statistical Rating Organization (NRSRO). When ratings are available from more than one NRSRO, the highest rating is used.
Risk Considerations
Investing involves risk, including the possible loss of principal. In general, the value of a fixed-income security falls when interest rates rise and rises when interest rates fall. Longer term bonds are more sensitive to interest rate changes and subject to greater volatility than those with shorter maturities.
Related: Global stocks steady ahead of key data
During periods of declining rates, the interest rates on floating rate securities generally reset downward and their value is unlikely to rise to the same extent as comparable fixed rate securities. Investors in asset-backed securities, including collateralized loan obligations (CLOs), generally receive payments that are part interest and part return of principal.
Asset-Backed Securities
Asset Backed Securities are financial investments, similar to bonds, that are collateralized by a pool of underlying assets—typically loans, leases, or receivables like credit card debt or auto loans. Types of ABS include ABS – Financial, ABS – Aircraft, ABS – Infrastructure, ABS – Whole Business Securitization, ABS – Other, and ABS – Consumer.
Non-Agency Residential Mortgage-Backed Securities (RMBS) are financial investments backed by pools of residential mortgage loans that are issued by private entities, rather than government-sponsored enterprises (like Fannie Mae or Freddie Mac).
Related: Rosenbluth discusses thematics options ETFs on CNBC
Middle-Market Companies are businesses that fall between small enterprises and large corporations, typically generating $10 million to $1 billion in annual revenue. Broadly Syndicated Loans refers to a senior secured corporate debt or debt facility that is distributed across a wide pool of institutional lenders rather than being held by a single bank or investor.
Investors should carefully consider the risks and considerations associated with the GISC before investing. The fund’s prospectus and summary prospectus (if available) contain the fund’s investment objectives, risks, charges, expenses, and other information, which should be considered carefully before investing.
The GISC is managed by Guggenheim Investments, which represents the investment management businesses of Guggenheim Partners, LLC. Investors can obtain a prospectus and summary prospectus (if available) at GuggenheimInvestments.com.
Leave a Reply