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Rating:iShares Grows its Bond ETF Lineup Not Rated 0.0 Email Routing List Email & Route  Print Print
Wednesday, July 10, 2013

iShares Grows its Bond ETF Lineup

Reported by Tommy Fernandez

When you catch hold of a good thing, it pays to run with it.

Capitalizing on growing demand for ETFs that provide broad access to fixed-income securities, BlackRock [profile] has expanded its iSharesBonds lineup of defined maturity ETFs with the addition of four corporate term ETFs.

For investors who are concerned about rising rates, the interest rate sensitivity of the iSharesBonds Corporate Term ETFs will decline through time as the funds approach maturity. If iSharesBonds are held until maturity, investors can expect to experience a yield that is similar to the yield to maturity of the underlying bonds held in the ETF. iSharesBonds can be utilized to target and manage interest rate risk, just like with a portfolio of individual bonds. Investors can also construct a bond ladder using iSharesBonds to help achieve a well-diversified portfolio for investments of almost any size.  

The new products launched today are:
iSharesBond 2016 Corporate Term ETF (NYSEArca: IBDA)
iSharesBond 2018 Corporate Term ETF (NYSEArca: IBDB)
iSharesBond 2020 Corporate Term ETF (NYSEArca: IBDC)
iSharesBond 2023 Corporate Term ETF (NYSEArca: IBDD)

  iShares previously launched four iSharesBonds Corporate ex-Financials Term ETFs in April 2013. In the two months since launch the funds’ assets under management have grown over 30 percent.

Matthew Tucker, head of iShares fixed income investment strategy stated that “iSharesBonds give investors an entirely new way to access the bond market, one that combines the benefits of both individual bonds and traditional ETFs. We expect the funds to be used by any investor who would use individual bonds, for building diversified portfolios, managing interest rate risk, and constructing bond ladders.

Here is the press release:
Company Press Release

BlackRock Expands iSharesBondsTM Suite of Defined Maturity ETFs

  iSharesBonds provide efficient access to corporate credit with a defined maturity date

    10 July 2013, New York – BlackRock, Inc. (NYSE: BLK) announced today that its iShares Exchange Traded Funds (ETFs) business, the world’s largest manager of ETFs[i], has expanded its suite of iSharesBondsTM with four new Corporate Term ETFs. These new products offer investors efficient access to a diversified pool of investment grade corporate credit securities with a defined maturity date, daily liquidity and price transparency.

  For investors who are concerned about rising rates, the interest rate sensitivity of the iSharesBonds Corporate Term ETFs will decline through time as the funds approach maturity. If iSharesBonds are held until maturity, investors can expect to experience a yield that is similar to the yield to maturity of the underlying bonds held in the ETF. iSharesBonds can be utilized to target and manage interest rate risk, just like with a portfolio of individual bonds. Investors can also construct a bond ladder using iSharesBonds to help achieve a well-diversified portfolio for investments of almost any size.

  The four iSharesBonds launched today are as follows:

  ·         iSharesBond 2016 Corporate Term ETF (NYSEArca: IBDA)

·         iSharesBond 2018 Corporate Term ETF (NYSEArca: IBDB)

·         iSharesBond 2020 Corporate Term ETF (NYSEArca: IBDC)

·         iSharesBond 2023 Corporate Term ETF (NYSEArca: IBDD)

  iShares previously launched four iSharesBonds Corporate ex-Financials Term ETFs in April 2013. In the two months since launch the funds’ Assets Under Management (AUM) have grown over 30%, illustrating the strong demand investors have for iSharesBonds defined maturity ETFs.

  Matthew Tucker, Head of iShares Fixed Income Investment Strategy commented:

“iSharesBonds give investors an entirely new way to access the bond market, one that combines the benefits of both individual bonds and traditional ETFs. We expect the funds to be used by any investor who would use individual bonds, for building diversified portfolios, managing interest rate risk, and constructing bond ladders.

  “Meeting our clients’ needs for efficient access to fixed income lies at the heart of the innovation of iSharesBonds. The launch of these four new iSharesBonds Corporate Term ETFs represents our continued commitment to innovation and bringing the best of BlackRock to our clients.”

  About BlackRock

BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. At March 31, 2013, BlackRock’s AUM was $3.936 trillion.  BlackRock helps clients meet their goals and overcome challenges with a range of products that include separate accounts, mutual funds,iShares® (exchange-traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions®. Headquartered in New York City, as of March 31, 2013, the firm has approximately 10,600 employees in 30 countries and a major presence in key global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit the Company's website at www.blackrock.com.

?About iShares

iShares is a global product leader in exchange traded funds with over 600 funds globally across equities, fixed income and commodities, which trade on 20 exchanges worldwide. The iShares Funds are bought and sold like common stocks on securities exchanges. The iShares Funds are attractive to many individual and institutional investors and financial intermediaries because of their relative low cost, tax efficiency and trading flexibility. Investors can purchase and sell shares through any brokerage firm, financial advisor, or online broker, and hold the funds in any type of brokerage account. The iShares customer base consists of the institutional segment of pension plans and fund managers, as well as the retail segment of financial advisors and high net worth individuals.
 

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