Julie Cooling from RIA Channel, interviews Bill Belden, Managing Director and Head of ETF Business Development of Guggenheim Investments. Cooling and Belden discuss creating predictable income by laddering bond ETFs.
Unlike traditional single issue laddering, ETFs provide the necessary diversification and liquidity advisors demand as they construct lower risk portfolios for clients. Bond interest payments provide cash flow, and advisors can better manage risk through laddering across broad yield exposure.
Hypothetical laddering tools allow advisors to experiment with various yield, duration, yield-to-maturity and other factors aimed to achieve certain portfolio characteristics. Allocation tools make laddering simple, save time and take the guess-work out of portfolio construction.