BlackRock has introduced new target maturity ‘iBonds’ ETFs in Europe providing exposure to portfolios of US and Italian government bonds maturing in a given year.
Brett Pybus, Global Co-Head of iShares Fixed Income ETFs at BlackRock.
Unlike the majority of fixed income ETFs, which hold bonds for a limited period of time to maintain a specific maturity exposure, BlackRock’s iBonds ETFs hold underlying bonds until maturity at which point the funds liquidate.
iBonds ETFs offer a regular income as well as a cash distribution at termination, thereby acting like individual bonds.
Investors further benefit from increased liquidity due to the ETF structure.
Designed to mature like a bond, trade like a stock, and diversify like a fund, iBonds ETFs make bond laddering simpler with only a few ETFs rather than researching and purchasing numerous individual bonds.
The recent expansion of BlackRock’s iBonds suite in…
