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What are bond ETFs?

Bond ETFs are a type of exchange-traded fund that invests in bonds. Bond ETFs can hold a portfolio of bonds with different strategies ranging from U.S. Treasuries to high yields, from long-term to short-term maturities.

Benefits of bond ETFs

Cost:
Bond ETFs offer diversified portfolios for a fraction of what is would cost to trade the individual bonds.

Diversification:
One ETF can provide exposure to hundres of bonds so you can achieve diversification in a single trade. For example, the iShares Core Total U.S. Bond Market ETF (AGG) provides access to over 1,700 investment-grade bonds.

Tradability:
iShares ETFs are exchange traded - they give you the ability to get in and out when you want.



iShares has a range of bond ETFs to help you navigate today's challenging landscape and meet your investment goals. Here’s a look into our different bond ETF strategies.

Prepare for Rising Interest Rates

With global interest rates near historic lows, rates have only one way to go. We have four bond-investing strategies you can use to prepare for rising rates.

Compare four bond ETF strategies


High-Yield Bond ETFs

Enhance your portfolio’s return potential with our high-yield bond ETFs.

Explore adding high-yield bond ETFs to your portfolio


iBonds® ETFs

Build a diversified portfolio of bond ETFs that mature on a specific end date with a single trade. Learn about our products and how you can use them in your portfolio.

Evaluate iBond ETFs


Municipal Bond ETFs

Generally exempt from federal taxes, muni bond ETFs offer a way to potentially generate income and save on taxes.

Understand muni bond ETFs

 


Go Deeper on ETF Mechanics


Looking for a Home for your Fixed Income?

Explore the breadth and depth of iShares bond ETFs


Buying iShares ETFs

Buying iShares funds is easy. Here are some ways to get started:

For more information, visit How to Buy iShares ETFs.

Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses, which may be obtained by visiting the iShares ETF and BlackRock Fund prospectus pages. Read the prospectus carefully before investing.

Investing involves risk, including possible loss of principal.

Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments.

Non-investment-grade debt securities (high-yield/junk bonds) may be subject to greater market fluctuations, risk of default or loss of income and principal than higher-rated securities.

There may be less information on the financial condition of municipal issuers than for public corporations. The market for municipal bonds may be less liquid than for taxable bonds. Some investors may be subject to federal or state income taxes or the Alternative Minimum Tax (AMT). Capital gains distributions, if any, are taxable.

When comparing stocks or bonds and iShares Funds, it should be remembered that management fees associated with fund investments, like iShares Funds, are not borne by investors in individual stocks or bonds.

Transactions in shares of ETFs will result in brokerage commissions and will generate tax consequences. All regulated investment companies are obliged to distribute portfolio gains to shareholders.

Diversification and asset allocation may not protect against market risk or loss of principal.

There can be no assurance that an active trading market for shares of an ETF will develop or be maintained.

The Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

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