GBF Fund Description

The iShares Government/Credit Bond ETF tracks a market-value weighted index of US Treasury, agency, and investment grade corporate bonds, excluding securitized debt instruments.

GBF ETF.com Insight

GBF is the only one-stop option available that excludes securitized debt from a broad-market allocation to investment grade US debt. The reweighting of the remainder of the US bond marketGBF is the only one-stop option available that excludes securitized debt pumps up GBF’s exposure to Treasurys and corporate debt, which together make up over 80% of GBF’s assets. GBF delivers a yield of just under 2%, just a bit less than our benchmark, due to exposure to short-term securities. Otherwise, the fund accurately reflects the space. GBF comes at a reasonable cost (20 bps), but trading the fund can pose challenges, due to its thin volume and elevated spreads. Traders may want to consider AGG or BND as alternative choices, but should be cognizant of those funds’ heavy allocation to securitized debt. (Insight updated 06/30/2014)

1 Year

Performance [as of 12/18/14]
1 Month
3 Month
YTD
1 Year
3 Years
5 Years
10 Years

GBF
1.09% 2.47% 5.96% 5.81% 2.61% 4.28% --

GBF (NAV)
0.51% 1.86% 5.42% 5.10% 2.43% 4.17% --

-- -- -- -- -- -- --
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

GBF Top 10 Countries

GBF Top 10 Sectors

GBF Top 10 Holdings

GBF Summary Data

Issuer BlackRock

A company that produces and manages ETFs.

Inception Date 01/05/07

The first date of a fund's operations, as documented by the issuer.

Legal Structure Open-Ended Fund

The organizational structure of the fund or ETN.

Expense Ratio 0.20%

The net total annual fee a fund holder pays to the issuer.

Assets Under Management $136.12 M

The market value of total assets that a fund has accumulated and now manages on behalf of investors.

Average Daily $ Volume $1.43 M

It is the daily dollar value of shares traded, averaged over the past 45 trading days.

(60-Day) | The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 60 days, as a percent." href="javascript:void(0)" class="term">Average Spread (60-Day) 0.15%

The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 60 days, as a percent.

GBF Portfolio Data

Duration 5.8

Price sensitivity in percentage to a 100 basis point parallel shift (up or down) in interest rates.

Weighted Avg. Maturity 7.9 Years

The weighted average of remaining time until maturity for all securities in the portfolio.

Yield to Maturity 2.07%

The weighted average yield if all securities in the portfolio were held until maturity. Assumes that interest can be reinvested at YTM rate.

Next Ex-Dividend Date 12/24/14

The date on which a security's price excludes an upcoming dividend.

Number of Holdings 831

The number of securities held in the fund as of ETF.com’s analysis date, based on issuer portfolios or the creation basket. If an ETF holds other ETFs, we count every constituent, looking through the ETF wrapper.

GBF Index Data

Index Tracked Barclays U.S. Government
/ Credit Bond Index

This is the benchmark an ETF is desigend to track or replicate.

Index Weighting Methodology Market Value

A set of rules that the underlying index provider follows to weight its constituent securities.

Index Selection Methodology Market Value

A set of rules that the underlying index provider follows to select its constituent securities.

Segment Benchmark Barclays U.S. Government
/ Credit Bond Index

This is the index that we have chosen as the best-in-class gauge for each segment's broad market.

Related ETFs to GBF

Top Competing ETFs N/A

ETFs from within the same segment or closely related segments with similar investment objectives or market exposures.

GBF Commentary & News

GBF ETF.com Efficiency Insight

At 20 bps, GBF is reasonably priced. Overall, the fund's heavily optimized portfolio has been well-managed. The fund's median tracking difference was slightly higher than its expense ratio, with little variability over the past two years. GBF has a steady following, with over $100M in AUM, making closure unlikely. (Insight updated 06/30/2014)

Total Return - 09/30/2014

Performance [as of 09/30/14]
1 Month
3 Month
YTD
1 Year
3 Years
5 Years
10 Years

GBF
-0.97% 0.53% 3.90% 4.81% 2.40% 3.96% --

GBF (NAV)
-0.92% 0.11% 3.96% 3.91% 2.31% 4.02% --

Barclays U.S. Government / Credit Bond Index
-0.90% 0.17% 4.12% 4.08% 2.54% 4.27% 4.59%

Barclays U.S. Government / Credit Bond Index
-0.90% 0.17% 4.12% 4.08% 2.54% 4.27% 4.59%
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

GBF Portfolio Management

Expense Ratio 0.20%

The net total annual fee a fund holder pays to the issuer.

(12 Mo) | Compares returns of the fund's NAV to its underlying index for a daily series of overlapping 12 month periods. The median is the middle value of the results." href="javascript:void(0)" class="term">Median Tracking Difference (12 Mo) -0.18%

Compares returns of the fund's NAV to its underlying index for a daily series of overlapping 12 month periods. The median is the middle value of the results.

GBF Tax exposures

Max LT/ST Capital Gains Rate 20.00% / 39.60%

The maximum long-term and short-term U.S. tax rates applicable to a realized capital gain.

Tax on Distributions N/A

IRS treatment of the majority of the fund's distributions.

Distributes K1 No

ETFs that are structured as commodities pools and classified as limited partnerships by the IRS will issue K-1 forms to holders.

GBF Fund Structure

Legal Structure Open-Ended Fund

The organizational structure of the fund or ETN.

OTC Derivative Use No

An indicator of whether a fund uses over-the-counter derivatives such as swaps or forwards to achieve its objectives.

Securities Lending Active Yes

An indicator of whether or not a fund actively lends its portfolio holdings.

ETN Counterparty N/A

The institution responsible for providing the return of the stated index and whose credit is the sole backing of the ETN.

ETN Counterparty Risk N/A

The risk of default by the ETN counterparty.

Fund Closure Risk Low

The likelihood that an issuer will shut down a fund for business or regulatory reasons.

Portfolio Disclosure Daily

The frequency of an issuer's disclosure of all fund holdings.

GBF ETF.com Tradability Insight

GBF's liquidity leaves much room for improvement. With less than $500K changing hands most days and spreads averaging 17 bps, retail investors should use limit orders and watch iNAV to avoid unnecessary trading costs. Block trading can be difficult and expensive too, requiring shopping around with liquidity providers for the best execution. Frequent traders should consider AGG or BND in the US Broad Market segment. (Insight updated 06/30/2014)

Average Spread

Premium/Discount

Volume

GBF ETF.com/ Block LiquidityAs of 12/19/2014

5
4
3
2
1

This measurement shows how easy it is to trade 25,000 shares of GBF. GBF is rated a 4 out of 5.

GBF Tradability

Avg. Daily Share Volume 12,567

It is the daily number of shares traded, averaged over the past 45 trading days.

Average Daily $ Volume $1.43 M

It is the daily dollar value of shares traded, averaged over the past 45 trading days.

Median Daily Share Volume 5,090

Median number of shares traded over the past 45 trading days.

(%) | The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 45 days, as a percent." href="javascript:void(0)" class="term">Average Spread (%) 0.15%

The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 45 days, as a percent.

($) | The difference between the highest and lowest posted prices for an ETF, averaged over the past 45 days, in dollars." href="javascript:void(0)" class="term">Average Spread ($) $0.17

The difference between the highest and lowest posted prices for an ETF, averaged over the past 45 days, in dollars.

(12 Mo) | The greatest amount that the market price exceeded (premium) and fell below (discount) its fair value/net asset value (NAV) over a maximum 12-month period." href="javascript:void(0)" class="term">Max. Premium / Discount (12 Mo) 0.78% / -0.47%

The greatest amount that the market price exceeded (premium) and fell below (discount) its fair value/net asset value (NAV) over a maximum 12-month period.

Impediment to Creations None

This flags whether there is currently a systemic issue that has restricted the ability to create or redeem shares of the fund. This may be imposed by the fund's issuer, or by external circumstances.

Market Hours Overlap 100.00%

The percent of time that the underlying securities of an ETF are open to trading while US exchanges are open.

(Shares) | The smallest block of ETF shares that an Authorized Participant can either create or redeem at net asset value (NAV) with the issuer in exchange for the underlying shares of the fund." href="javascript:void(0)" class="term">Creation Unit Size (Shares) 100,000

The smallest block of ETF shares that an Authorized Participant can either create or redeem at net asset value (NAV) with the issuer in exchange for the underlying shares of the fund.

(45 Day Average) | The median 45 day share volume divided by the creation unit size of the fund. The higher the number, the more likely that liquidity providers will trade the fund in size, or in odd lots." href="javascript:void(0)" class="term">Creation Unit/Day (45 Day Average) 0.05

The median 45 day share volume divided by the creation unit size of the fund. The higher the number, the more likely that liquidity providers will trade the fund in size, or in odd lots.

(%) | The standard fee to create or redeem 1 creation unit of an ETF as a percentage of the dollar value of 1 creation unit." href="javascript:void(0)" class="term">Creation Unit Cost (%) 0.00%

The standard fee to create or redeem 1 creation unit of an ETF as a percentage of the dollar value of 1 creation unit.

Open Interest on ETF Options --

The total number of net outstanding options contracts for an ETF.

ETF.com Implied Liquidity 4

An estimate of liquidity for the underlying baskets of securities, scaled 1 to 5.

GBF ETF.com Fit Insight

GBF Fits the US investment-grade government/credit space very well. The exclusion of MBSs makes the portfolio's weighting to Treasurys and corporate debt more pronounced (over 80% of the portfolio). The only meaningful difference comes in a slightly lower yield and a correspondingly lower duration. Otherwise, investors looking to ignore MBSs get an excellent, albeit heavily optimized representation of the space. (Insight updated 06/30/2014)

GBF Sector/Industry Breakdown

Sector GBF Segment Benchmark
Treasury 51.83% 52.91%

Corporate 34.09% 32.99%

Non-Corporate 8.63% 9.17%

Agency 5.18% 4.62%

Cash 0.00% 0.30%

MBS Pass-throughs 0.23% 0.00%

Revenue 0.03% 0.00%

General Obligation 0.01% 0.00%

GBF Top 5 Countries

United States 85.49% 85.66%

Supranational 2.35% 2.51%

Canada 2.19% 2.16%

United Kingdom 1.55% 1.58%

Germany 1.19% 1.15%

GBF Top 5 Currencies

USD 100.00% 100.00%

Developed Market Currencies 100.00% 100.00%

GBF Performance Statistics

Beta 1.00

The sensitivity of the returns of the fund to the movement of the ETF.com segment benchmark. Beta of 1.0 means magnitude of fund returns equals that of IU benchmark returns.

Up Beta 1.00

The comparison of a fund's return to our benchmark's for days when the benchmark is up. Ideally down beta is less than up beta while beta of 1.0 means they're equal.

Down Beta 1.00

The comparison of a fund's return to our benchmark's for days when the benchmark is down. Ideally down beta is less than up beta while beta of 1.0 means they're equal.

Downside Standard Deviation 0.00%

A measure of the variability between the fund's returns and the ETF.com segment benchmark returns on days when the fund underperforms the benchmark.

GBF Holdings Statistics

Sector GBF Segment Benchmark
Weighted Avg. Maturity 8.06 7.89

The weighted average of remaining time until maturity for all securities in the portfolio.

Effective Duration 5.95 5.85

A measure of interest rate risk. Estimates change in value to the portfolio based on a 1% parallel shift in the yield curve.

(2 year) | A measure of interest rate risk. Estimates the portfolio's sensitivity to changes in 2 year interest rates holding other rates constant." href="javascript:void(0)" class="term">Key Rate Duration (2 year) 0.34 0.29

A measure of interest rate risk. Estimates the portfolio's sensitivity to changes in 2 year interest rates holding other rates constant.

(10 year) | A measure of interest rate risk. Estimates the portfolio's sensitivity to changes in 10 year interest rates holding other rates constant." href="javascript:void(0)" class="term">Key Rate Duration (10 year) 3.36 3.33

A measure of interest rate risk. Estimates the portfolio's sensitivity to changes in 10 year interest rates holding other rates constant.

Yield to Maturity 2.14% 2.07%

The weighted average yield if all securities in the portfolio were held until maturity. Assumes that interest can be reinvested at YTM rate.

Credit Spread Duration 3.13 3.17

Price sensitivity in percentage to a 100 basis point change (widening or narrowing) of spread relative to Treasury spot curve.

Concentration Low Low

The Herfindahl Index number – a metric of portfolio concentration where higher numbers mean higher concentration of holdings.

Number of Holdings 6,836 831

The number of securities held in the fund as of ETF.com’s analysis date, based on issuer portfolios or the creation basket. If an ETF holds other ETFs, we count every constituent, looking through the ETF wrapper.

Weighted Avg. Credit A A

Market–value–weighted average credit quality of the portfolio.

GBF Maturity Distribution

0 - 1 Year 0.01% 2.43%

Percent of the portfolio's exposure to securities with 0 - 1 years until maturity.

1 - 3 Years 33.10% 30.21%

Percent of the portfolio's exposure to securities with 1 - 3 years until maturity.

3 - 5 Years 21.32% 25.43%

Percent of the portfolio's exposure to securities with 3 - 5 years until maturity.

5 - 7 Years 13.53% 7.34%

Percent of the portfolio's exposure to securities with 5 - 7 years until maturity.

7 - 10 Years 12.59% 14.95%

Percent of the portfolio's exposure to securities with 7 - 10 years until maturity

10+ Years 19.45% 19.64%

Percent of the portfolio's exposure to securities with 10+ years until maturity.

GBF Credit Breakdown

AAA 61.02% 61.70%

Percent of portfolio's exposure to AAA rated bonds (Investment Grade).

AA 5.16% 5.89%

Percent of portfolio's exposure to AA rated bonds (Investment Grade).

A 16.60% 16.18%

Percent of portfolio's exposure to A rated bonds (Investment Grade).

BBB 17.21% 16.21%

Percent of portfolio's exposure to BBB rated bonds (Investment Grade).

BB 0.00% 0.02%

Percent of portfolio's exposure to BB rated bonds (High Yield).

B 0.00% 0.00%

Percent of portfolio's exposure to B rated bonds (High Yield).

CCC 0.00% 0.00%

Percent of portfolio's exposure to CCC rated bonds (High Yield).

CC 0.00% 0.00%

Percent of portfolio's exposure to CC rated bonds (High Yield).

C 0.00% 0.00%

Percent of portfolio's exposure to C rated bonds (High Yield).