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Bonds have long been a staple in investor portfolios, offering the potential for steady income and relatively low volatility. However, the way that investors access bonds has changed over time. Investors are increasingly turning to bond ETFs due to their low cost, tax efficiency, and ease of use.

iShares has a range of bond ETFs to help you navigate today’s challenging landscape and meet your specific investment goals. Here’s a look at some different bond strategies.

Seek Stability

Bonds are often thought of a ballast within a portfolio due their lower level of risk relative to equities. Investors looking for potential protection against stock market volatility while also seeking returns can consider a low cost, diversified bond fund or an allocation to low risk U.S. Treasury bonds.


Search for Yield

Finding income can be difficult in today's low yield environment. Consider investment grade or high yield bonds, which have historically generated greater income than Treasury bonds. Similarly, emerging market bonds have historically offered a higher yield than their developed market counterparts and may be a good solution for investors who are comfortable with a degree of additional risk.



Seek Protection Against Rising Rates

Seek a better balance of risk and return by focusing on credit exposure, which is tied to the health of the companies that issue bonds rather than interest rate movements. Choosing a short duration or interest rate hedged strategy can help reduce the impact of rising rates on your bond allocation.



Other Strategies


Explore the benefits of bond ETFs

PDF: Fixed Income Investor Guide

Fixed Income Investor Guide

Create and analyze a fixed income ETF portfolio

Fixed Income Portfolio Builder

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.

TIPS can provide investors a hedge against inflation, as the inflation adjustment feature helps preserve the purchasing power of the investment. Because of this inflation adjustment feature, inflation protected bonds typically have lower yields than conventional fixed rate bonds and will likely decline in price during periods of deflation, which could result in losses. Government backing applies only to government issued securities, and does not apply to the funds.

There is no guarantee that interest rate risk will be reduced or eliminated within the Fund.

An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency and its return and yield will fluctuate with market conditions.

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.

International investing involves risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. These risks often are heightened for investments in emerging/ developing markets or in concentrations of single countries.

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

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

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.

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Cohen & Steers Capital Management, Inc., European Public Real Estate Association (“EPRA® ”), FTSE International Limited (“FTSE”), India Index Services & Products Limited, JPMorgan Chase & Co., Japan Exchange Group, MSCI Inc., Markit Indices Limited, Morningstar, Inc., The NASDAQ OMX Group, Inc., National Association of Real Estate Investment Trusts (“NAREIT”), New York Stock Exchange, Inc., Russell Investment Group or S&P Dow Jones Indices LLC, nor are they sponsored, endorsed or issued by Barclays Capital Inc. None of these companies make any representation regarding the advisability of investing in the Funds. BlackRock is not affiliated with the companies listed above. Index data related to the underlying indexes is provided by the respective companies above.


Neither FTSE nor NAREIT makes any warranty regarding the FTSE NAREIT Real Estate 50 Index, FTSE NAREIT All Residential Capped Index or FTSE NAREIT All Mortgage Capped Index; all rights vest in NAREIT. Neither FTSE nor NAREIT makes any warranty regarding the FTSE EPRA/NAREIT Developed Real Estate ex-U.S. Index, FTSE EPRA/NAREIT Developed Europe Index or FTSE EPRA/NAREIT Global REIT Index; all rights vest in FTSE, NAREIT and EPRA.“FTSE®” is a trademark of London Stock Exchange Group companies and is used by FTSE under license.

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