ETF Watch: iShares Plans New ‘iBonds’ Fund

BlackRock’s iShares to add a new ETF to its lineup of target-maturity fixed-income products.

ETF.com
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Reviewed by: etf.com Staff
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Edited by: etf.com Staff

iShares has filed for another addition to its family of target-maturity bond ETFs. The firm already has 10 such products targeting the investment-grade corporate bond space; the iShares iBonds Dec 2026 Term Corporate ETF would bring the number to 11 if it launches before the 2016 ETF closes.

Each iBonds ETF invests in bonds that mature in a specific year, making them ideal for laddering strategies. The iBonds corporate bond series currently covers each year from 2016 through 2025, while the municipal bond series covers 2016 through 2022.

Although the filing did not include an expense ratio, the odds are high that the proposed fund will charge 0.10%, just like the 10 other funds in the ETF family. Given the alphabetical nature of the fund family’s tickers, it also seems likely the ticker will be IBDR. And with all the other iBonds ETFs listed on the NYSE Arca, that seems the proposed fund’s likely listing destination.

The family of target-maturity corporate bond ETFs maturing in December of their respective years currently has nearly $1 billion in assets under management.

Guggenheim’s similar family of BulletShares also covers the years 2016 through 2025, and costs more than twice as much as the iShares products, at 0.24%. The firm also has a high-yield corporate debt family of target-maturity funds that cover 2016 through 2023.

Contact Heather Bell at [email protected].

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