BlackRock has expanded its range of iShares iBonds UCITS ETFs with the launch of eight new vehicles based on exposures to investment-grade corporate bonds, increasing the iShares range of fixed-maturity UCITS ETFs to 25 funds with maturities between 2025 and 2034. According to the asset manager, these new ETFs aim to provide affordable access to the corporate bond market, enhanced by cost efficiency, transparency, liquidity, and diversification through ETFs.
“The iBonds ETFs hold a variety of bonds with similar maturity dates. Each ETF provides regular interest payments and distributes a final payment in its set maturity year. Designed to mature like a bond, trade like a stock, and diversify like a fund, the iBonds ETFs simplify bond laddering with just a few ETFs instead of searching for and buying numerous individual bonds,” BlackRock has emphasized.
These new iBonds ETFs add additional maturities in IG corporate debt to the iBonds range, across multiple countries and sectors in each ETF. The ETFs offer four defined maturity dates in December of 2031, 2032, 2033, and 2034, in both U.S. dollars and euros in IG, giving investors flexibility between currencies, maturities, and countries.
“As the range of iBonds UCITS ETFs expands, investors will be able to benefit from greater versatility to meet specific needs of their portfolios and expand use cases, such as bond laddering. These new iBonds ETFs provide an additional option for clients seeking to lock in yields at a specific point on the curve, along with the operational efficiency and convenience of the ETF vehicle,” said Brett Pybus, Co-Global Director of Fixed Income iShares ETFs at BlackRock.
The iBonds ETFs can be used by investors to complement existing investment vehicles, in an easy-to-understand structure that aims to achieve performance through a combination of capital appreciation and income derived from coupon payments on the underlying bonds. The set of ETFs can also be used to add scale to bond portfolios offered by investment advisors and improve operational simplicity. The iBonds are available through wealth management platforms, including digital ones, and brokers across Europe.
“Investors can also use these iBonds UCITS to build scalable and diversified bond ladders. By buying bonds with different maturity dates, investors can stagger the final payments and reinvest in funds with subsequent consecutive maturities, creating bond ladders. The unique structure of the iBonds ETFs makes it easier for investors to structure their investments to meet shorter-term objectives and achieve defined returns over specified investment periods,” concludes the entity.
