- Three new ETFs seek to provide targeted exposure to BB, B, and CCC1 rated segments of the U.S. corporate bond market
LARKSPUR, Calif., May 26, 2022 /PRNewswire/ — BondBloxx Investment Management, launched in October of 2021 to provide precision ETF exposures for fixed income investors, announced the launch of three new ETFs which begin trading today on NYSE Arca. The ETFs track ratings-specific sub-indices of the ICE BofA US Cash Pay High Yield Constrained Index2. The new BondBloxx products add to seven sector-specific high yield ETFs launched earlier this year.
“We founded BondBloxx to provide modern tools for modern markets,” said BondBloxx co-founder Tony Kelly. “And our targeted products make it possible for investors to finally execute sophisticated investment views through ETFs – which are a time-honored tool to access liquidity and efficient exposure, especially in today’s volatile markets.”
“As rising rates and volatility continue to impact the corporate bond market, the need for new tools to manage fixed income exposure is becoming even more critical,” said BondBloxx co-founder and portfolio manager Elya Schwartzman.
The new products listing today are:
BondBloxx BB Rated USD High Yield Corporate Bond ETF
Ticker: XBB
Seeks to invest in bonds rated BB1 through BB3.
BondBloxx B Rated USD High Yield Corporate Bond ETF
Ticker: XB
Seeks to invest in bonds rated B1 through B3.
BondBloxx CCC Rated USD High Yield Corporate Bond ETF
Ticker: XCCC
Seeks to invest in bonds rated CCC1 through CCC3.
To learn more about BondBloxx, visit BondBloxxETF.com.
1 Credit ratings reflect the credit quality of the underlying securities in the Fund’s portfolio and not that of the fund itself. Quality ratings are subject to change. A triple-A (AAA) is the highest credit quality, and C or D (depending on the agency issuing the rating) is the lowest or junk quality.
2 ICE BofA US High Yield Index tracks the performance of US dollar denominated below investment grade rated corporate debt publicly issued in the US domestic market. Investors cannot directly invest in an index.
About BondBloxx Investment Management Corporation
BondBloxx Investment Management Corporation (“BondBloxx”), a registered investment adviser, is the first ETF issuer focused solely on addressing the needs of fixed income investors. BondBloxx will seek to design and launch ETFs that offer precise market exposures to fixed income asset classes. For more information, go to BondBloxxETF.com.
This shall not constitute or serve as an offer to sell products or services in any country or jurisdiction by BondBloxx. For informational purposes only. All information is given in good faith and without warranty and should not be considered investment advice or an offer of any security for sale.
Carefully consider the Funds’ investment objectives, risks, charges, and expenses before investing. This and other information can be found in the Funds’ prospectus or, if available, the summary prospectus, which may be obtained by visiting bondbloxxetf.com. Read the prospectus carefully before investing.
Securities that are rated below investment-grade (sometimes referred to as “junk bonds,” which may include those bonds rated below “BBB-” by S&P Global Ratings and Fitch or below “Baa3” by Moody’s), or similar securities that are unrated, may be deemed speculative, may involve greater levels of risk than higher-rated securities of similar maturity and may be more likely to default. The Fund’s income may decline if interest rates fall. An increase in interest rates will generally cause the value of securities held by the Fund to decline, may lead to heightened volatility in the fixed income markets and may adversely affect the liquidity of certain fixed-income investments, including those held by the Fund. Debt issuers and other counterparties may be unable or unwilling to make timely interest and/or principal payments when due or otherwise honor their obligations. Investing in mortgage- and asset-backed securities involves interest rate, credit, valuation, extension and liquidity risks and the risk that payments on the underlying assets are delayed, prepaid, subordinated, or defaulted on.
Distributor: Foreside Fund Services, LLC.
SOURCE BondBloxx
