BlackRock has extended its fixed maturity iBonds range with the launch of eight investment grade (IG) credit ETFs.
The new products provide additional maturities, both in dollars and euros, for IG credit across a diversified range of geographies and sectors:
iShares iBonds Dec 2031 Term $ Corp UCITS ETF (31ID)
iShares iBonds Dec 2032 Term $ Corp UCITS ETF (32ID)
iShares iBonds Dec 2033 Term $ Corp UCITS ETF (33ID)
iShares iBonds Dec 2034 Term $ Corp UCITS ETF (34ID)
iShares iBonds Dec 2031 Term € Corp UCITS ETF (31IG)
iShares iBonds Dec 2032 Term € Corp UCITS ETF (32XG)
iShares iBonds Dec 2033 Term € Corp UCITS ETF (33GI)
iShares iBonds Dec 2034 Term € Corp UCITS ETF (34GI)
The US dollar ETFs have listed on Euronext Amersterdam and the euro products on Deutsche Boerse. All debut with a total expense ratio (TER) of 0.12%.
As at the end of October, the Europe-domiciled iBonds range had booked year-to-date inflows of $4.2bn – around 8% of all fixed income UCITS ETF flows, according to BlackRock figures.
The launch expands the Europe-domiciled iBonds range to 25, 20 of which provide exposure to IG credit.
“As the range of iBonds UCITS ETFs grows, investors will be able to benefit from additional versatility to meet specific portfolio needs and expanding use-cases such as bond laddering,” said Brett Pybus (pictured), global co-head of iShares fixed income ETFs at BlackRock.
“These new iBonds ETFs provide additional choice to clients who aim to lock in yields targeting a specific point on the curve coupled with the operational efficiency and convenience of the ETF wrapper,” he added.
Fixed maturity ETFs hold a diverse range of bonds with similar maturity dates. They make regular interest payments over the fund’s life before a final payout in its stated maturity year.
The new iBonds products track a family of ESG-screened corporate bond indices constructed by Bloomberg Indices and MSCI providing IG exposure to the relevant maturity date and currency.
In April, BlackRock launched a fixed maturity ETFs providing exposure to US and Italian government bonds.
