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iShares Launches Seven Fixed-Income ETFs
The new ETFs include:
• iShares Aaa – A Rated Corporate Bond Fund – This ETF will provide single-trade access to corporate debt issuers, broadly diversified across sectors and maturities. The fund is designed to track the Barclays Capital U.S. Corporate Aaa – A Capped Index.
• iShares Barclays U.S. Treasury Bond Fund – Offers exposure to a broad range of U.S. Treasuries maturities (1-30 years) in one trade. Designed to track the Barclays Capital U.S. Treasury Bond Index, the new fund allows investors to shift toward U.S. Treasuries in times of negative market sentiment.
• iShares Barclays CMBS Bond Fund – The ETF provides exposure to investment-grade commercial mortgage-backed securities. The new iShares ETF can complement the iShares Barclays MBS Bond Fund and help investors express tactical views on the commercial real estate market.
• iShares Barclays GNMA Bond Fund – The ETF offers a flexible and cost-efficient way to invest in a diversified portfolio of fixed-rate, mortgage-backed securities issued by the Government National Mortgage Association (GNMA). GNMAs are the only mortgage securities explicitly supported by the full faith and credit of the U.S. government.
• iShares Financials Sector Bond Fund – This ETF has targeted exposure to investment-grade U.S. corporate financial sector bonds. Today 33% of the U.S. corporate bond market comprises financials sector bonds. The new fund is designed to track the Barclays Capital U.S. Financial Institutions Capped Bond Index.
• iShares Industrials Sector Bond Fund – This ETF expresses a view on the industrial sector, which comprises 56% of the U.S. corporate bond market. The new fund is designed to track the Barclays Capital U.S. Industrial Bond Index.
• iShares Utilities Sector Bond Fund – This ETF provides a flexible and cost-efficient way to express a view on the U.S. utility corporate bond sector. It is designed to track the Barclays Capital U.S. Utility Bond Index.
“We are launching these new iShares ETFs specifically in response to growing demand for liquid and transparent fixed-income investments that are easy to buy and trade. Investors have shown a clear interest in ETFs as they readjust their fixed-income portfolios,” said Matt Tucker, Head of iShares Fixed Income Investment Strategy at BlackRock.