On Thursday, BlackRock released the BlackRock Enhanced Short-Term Bond ETF (CSHP ) and the iShares U.S. Manufacturing ETF (MADE ), the latest additions to its dominant lineup of exchange-traded funds.
Bond Returns
CSHP’s goal is to provide total return in excess of the ICE BofA 3-Month U.S. Treasury Bill Index. The fund operates with a net expense ratio of 0.20%.
The fund invests in bond instruments that rated either BBB- or higher. These bond options can be U.S. and non-U.S. dollar denominated. This includes corporate bonds, U.S. Treasury bonds, munis, and money market instruments, among other options.
As a short-term bond fund, CHSP aims to keep the average maturity of the portfolio at about a year or less. Additionally, the fund seeks to preserve a dollar-weighted average maturity of less than a year.
Growth in Manufacturing
For investors looking to magnify their manufacturing exposure, MADE might do just the job. With a net expense ratio of 0.40%, the fund aims to track the results of the S&P U.S. Manufacturing Select Index.
This index measures the performance of U.S.-based companies that are engaged in either manufacturing or manufacturing-related industries. To qualify for inclusion in the index, companies must pass factor thresholds, including manufacturing industry and amount of revenue derived from the United States.
Through a vigorous portfolio construction process, MADE aims to provide growth opportunities using companies that could more reshoring production and domestic manufacturing output. As a portfolio addition, the fund expands beyond a traditional industrials position to capture momentum behind manufacturing companies.
“Growing geopolitical uncertainty and global policy power moves have made the domestic manufacturing space increasingly attractive as an investment theme,” added Kirsten Chang, VettaFi Senior Industry Analyst. “This new ETF underscores the broader U.S. reshoring thesis BlackRock has pushed in its midyear outlook, and is set to span a range of industries beyond just your typical infrastructure and industrials.”
As one of the largest ETF providers on the U.S. stock market, BlackRock has over 440 ETFs currently listed. Furthermore, these funds currently have over $2.9 trillion in total assets under management.
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