iShares Adds To iBonds Junk Bond ETF Lineup

July 09, 2021

iShares added another high yield corporate bond fund to its stable with the launch of the iShares iBonds 2027 Term High Yield And Income ETF (IBHG) today.

The fund aims to invest primarily in junk bonds and other shorter-term securities through December 15, 2027, when it will liquidate.

The bonds in IBHG’s underlying index are drawn from a custom index composed of members of the Bloomberg Barclays U.S. High Yield Index and the Bloomberg Barclays U.S. Corporate Index that are set to mature beyond the fund’s closing date, and they carry a face value above $250 million.

The fund also rebalances at the end of each month until late June 2027.

In effect, IBHG is the successor to the iShares iBonds 2021 Term High Yield and Income ETF (IBHA), which is identical in strategy and expires this December.

Like the other funds in the family, IBHG carries an expense ratio of 0.35%, putting it 7 basis points cheaper than the Invesco BulletShares 2027 High Yield Corporate Bond ETF (BSJR).

Contact Dan Mika at [email protected], and follow him on Twitter

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