After launching five iShares ETFs that invest in U.S. Treasury inflation-protected securities, BlackRock has expanded its iShares iBonds ETF franchise with five more TIPS defined maturity bond ETFs. The total TIPS iBonds ETF suite consists of 10 funds that invest in U.S. TIPS with maturities ranging from 2024 to 2033.
Bond ETFs hold diverse bonds with matching maturity dates. Each fund provides regular interest payments and distributes a final payout in its stated maturity year. iBonds ETFs are designed to mature like a bond, trade like a stock, and diversify like a fund. They make bond laddering simpler, with only a few ETFs rather than researching and purchasing numerous individual bonds.
See more: BlackRock Lists 5 iShares TIPS ETFs
The newly listed funds are:
- Shares iBonds Oct 2029 Term TIPS ETF (NYSE Arca: IBIF) (ICE 2029 Maturity US Inflation-Linked Treasury Index)
- Shares iBonds Oct 2030 Term TIPS ETF (NYSE Arca: IBIG) (ICE 2030 Maturity US Inflation-Linked Treasury Index)
- Shares iBonds Oct 2031 Term TIPS ETF (NYSE Arca: IBIH) (ICE 2031 Maturity US Inflation-Linked Treasury Index)
- Shares iBonds Oct 2032 Term TIPS ETF (NYSE Arca: IBII) (ICE 2032 Maturity US Inflation-Linked Treasury Index)
- Shares iBonds Oct 2033 Term TIPS ETF (NYSE Arca: IBIJ) (ICE 2033 Maturity US Inflation-Linked Treasury Index)
New Tools to Manage Inflation, Interest Rate Risk
“iBonds ETFs have become an essential part of advisors’ toolkits, helping them build bond ladders and better scale their practice across multiple client accounts,” said Karen Veraa, head of U.S. iShares Fixed Income Strategy at BlackRock. “The TIPS iBonds ETF suite provides advisors a new way to navigate this higher-for-longer rate environment while simultaneously providing investors a way to manage inflation risk and access yield.”
BlackRock launched its first iBonds ETFs in 2010. With $23 billion in assets under management, the iBonds ETF franchise spans several asset classes. This includes U.S. Treasuries, municipals, investment grade, high yield, and now, TIPS. Since inception, BlackRock has launched 77 iBonds ETFs, with 47 still active.
“BlackRock has a strong suite of target maturity ETFs to help advisors and clients manage their duration,” said VettaFi’s head of research Todd Rosenbluth. “It’s great to see them expand the lineup to include TIPS-based products too.”
The funds carry an expense ratio of 0.10%.
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