LARKSPUR, Calif., Feb. 17, 2022 /PRNewswire/ — Today, BondBloxx Investment Management launched its first product suite of 7 exchange traded funds (ETFs). The fixed income funds, which begin trading today on NYSE Arca, offer precise, index-based exposure to the high yield asset class and allow investors the opportunity to diversify and manage risk to industry sector.
“Until today, fixed income investors could not execute sector-specific views in high yield bonds through ETFs. We are excited to bring the ETF benefits of efficiency, transparency, and liquidity to fixed income investors with first-to-market products that enable what we believe is a more precise portfolio construction,” said BondBloxx founder Leland Clemons.
The funds are passively managed and track rules-based sub-indices of the ICE BofA US Cash Pay High Yield Constrained Index.2
BondBloxx US High Yield Energy Sector ETF
Energy sector including the exploration & production, gas distribution, oil field equipment & services, and oil refining & marketing sub-sectors
BondBloxx US High Yield Industrial Sector ETF
Basic materials, capital goods, transportation and services sub-sectors
BondBloxx US High Yield Financial and REIT Sector ETF
Banking, financial services, insurance, and REIT sub-sectors
BondBloxx US High Yield Telecom Media & Technology Sector ETF
Telecom, media and technology sector, including the telecommunications, communication services, technology & electronics, and media sub-sectors
BondBloxx US High Yield Healthcare Sector ETF
Healthcare sector, including the health facilities, health services, managed care, medical products, and pharmaceuticals sub-sectors
BondBloxx US High Yield Consumer Cyclicals Sector ETF
Consumer cyclicals sector, including the automotive, leisure, real estate development & management, department stores, and specialty retail sub-sectors
BondBloxx US High Yield Consumer Non-Cyclicals Sector ETF
Consumer non-cyclicals sector, including the consumer goods, discount stores, food & drug retail, restaurants, and utilities sub-sectors
BondBloxx was founded by ETF industry leaders Leland Clemons, Joanna Gallegos, Elya Schwartzman, Mark Miller, Brian O’Donnell and Tony Kelly. The team has collectively built and launched over 350 ETFs at firms including BlackRock, J.P. Morgan, State Street, Northern Trust and HSBC.
“Our conversations with investors have reinforced what we already knew – there is significant demand for more targeted fixed income products,” said BondBloxx co-founder Tony Kelly. “Our initial product suites aim to create a full toolkit for high yield investors looking to implement their specific views on the market, and we anticipate extending this approach to other fixed income asset classes.”
The funds launching today have an annual expense ratio of 0.35%. BondBloxx has filed a prospectus with the SEC with proposed details of the second set of funds.
To learn more about BondBloxx, visit BondBloxxETF.com.
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.
There are risks associated with investing, including possible loss of principal. Fixed income investments are subject to interest rate risk; their value will normally decline as interest rates rise. Fixed income investments are also subject to credit risk, the risk that the issuer of a bond will fail to pay interest and principal in a timely manner, or that negative perceptions of the issuer’s ability to make such payments will cause the price of that bond to decline. 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.
1 INFORMATION CONTAINED HEREIN IS SUBJECT TO COMPLETION OR AMENDMENT. A REGISTRATION STATEMENT RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BUT HAS NOT YET BECOME EFFECTIVE. THESE SECURITIES MAY NOT BE SOLD NOR MAY OFFERS TO BUY BE ACCEPTED PRIOR TO THE TIME THE REGISTRATION STATEMENT BECOMES EFFECTIVE. THIS COMMUNICATION SHALL NOT CONSTITUTE AN OFFER TO BUY OR THE SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THESE SECURITIES IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER SECURITIES LAWS OF ANY SUCH STATE.
AN INDICATION OF INTEREST IN RESPONSE TO THIS ADVERTISEMENT WILL INVOLVE NO OBLIGATION OR COMMITMENT OF ANY KIND.
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.