Simple answer is no. It's not a real bond ladder since they just roll the bonds over, they don't hold anything to maturity. So in reality these aren't actually laddered, just another lame attempt at trying to clone the real thing.
Claymore 1 to 5 Year Laddered ETF's
Greetings all,
was wondering if anyone had insight into how the Claymore Laddered ETF's should perform relative to other Bond ETF's and Bond funds.
I'm guessing that this feature should help reduce the risk that interest rates go up right after you buy into a bond fund and clobber your returns, though other bond funds may also hold bonds of different maturities. Still, this laddering of the Claymore ETF's should make them less volatile, right?
Also, one of the concerns with Bond funds that I've always heard (in addition to the MER's) has always been that you don't have a guaranteed return, unlike the case with buying a bond. Does the laddering help with that at all?
was wondering if anyone had insight into how the Claymore Laddered ETF's should perform relative to other Bond ETF's and Bond funds.
I'm guessing that this feature should help reduce the risk that interest rates go up right after you buy into a bond fund and clobber your returns, though other bond funds may also hold bonds of different maturities. Still, this laddering of the Claymore ETF's should make them less volatile, right?
Also, one of the concerns with Bond funds that I've always heard (in addition to the MER's) has always been that you don't have a guaranteed return, unlike the case with buying a bond. Does the laddering help with that at all?
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