Search Form

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.

Read more about this strategy


High-Yield Bond ETFs

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

Learn about adding high-yield bonds to your portfolio


iBonds® ETFs

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

More on iBonds


Municipal Bond ETFs

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

See more on muni bond ETFs

About bonds

Bonds are issued by companies and governments to finance a variety of activities. In buying a bond, an investor loans money to the issuer and receives regular coupon payments in addition to repayment of the face value of the loan when the bond matures.

Benefits of Bond ETFs

Pay less to invest
Bond ETFs offer diversified portfolios for a fraction of what it would cost to trade the individual bonds.

Diversification
One ETF can provide exposure to hundreds 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.

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 Mutual 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”).

BlackRock does not provide tax advice. Please note that (i) any discussion of US tax matters contained in this communication cannot be used by you for the purpose of avoiding tax penalties; (ii) this communication was written to support the promotion or marketing of the matters addressed herein; and (iii) you should seek advice based on your particular circumstances from an independent tax advisor.

©2014 BlackRock, Inc. All rights reserved. BLACKROCK, BLACKROCK SOLUTIONS, ALADDIN, iSHARES, iBONDS, iSHARES CONNECT, LIFEPATH, SO WHAT DO I DO WITH MY MONEY, INVESTING FOR A NEW WORLD, BUILT FOR THESE TIMES, CoRI and the CoRI logo are registered and unregistered trademarks of BlackRock, Inc., or its subsidiaries in the United States and elsewhere. All other marks are the property of their respective owners.

iS-11660