A bond ETF is a portfolio of bonds that trades on an exchange like a stock. Today, investors of all types — from sophisticated institutions, financial advisors, and personal investors — are investing with bond ETFs because they make investing in bonds easy and simple.
Seek to add stability to your equity allocation with bond ETFs that cover the broad market.
Seek a higher level of income with high yield bonds, emerging market debt, or preferred stocks.
Try to earn a little more from your cash with short duration bond ETFs.
Create scalable, diversified, bond ladders with ease using iShares iBonds® ETFs.
1 Source: Morningstar, as of 3/31/18. Based on the returns of AGG, LQD, MUB, TIP, EMB, and HYG for the 10 year period. The return percentile ranking for AGG was 63% in the Morningstar Open-End Intermediate-Term Bond Category which included 235 funds. The return percentile ranking for LQD was 24% in the Morningstar Open-End Corporate Bond Category which included 29 funds. The return percentile ranking for MUB was 24% in the Morningstar Open-End Muni National Intermediate Bond Category which included 72 funds. The return percentile ranking for TIP was 28% in the Morningstar Open-End Inflation Protected Bond Category which included 32 funds. The return percentile ranking for EMB was 39% in the Morningstar Open-End Emerging Market Bond Category which included 14 funds. The return percentile ranking for HYG was 74% in the Morningstar Open-End High Yield Bond Category which included 113 funds. Past performance does not guarantee future results. For more information about the differences between ETFs and mutual funds, please click here.
2 Source: Morningstar, as of 3/31/18. Comparison is between the average Prospectus Net Expense Ratio for the iShares Bond ETFs (0.21%) and the fixed income active open-end mutual funds (0.92%) available in the U.S. (excluding money market funds).
3 Source: Morningstar, as of 12/31/17. Past distributions are not indicative of future distributions.
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 Fund 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.
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.
Shares of ETFs trade at market price, which may be greater or less than net asset value. The iShares® iBonds® ETFs (“Funds”) will terminate within the month and year in each Fund’s name. An investment in the Fund(s) is not guaranteed, and an investor may experience losses and/or tax consequences, including near or at the termination date. In the final months of each Fund's operation, its portfolio will transition to cash and cash-like instruments. As a result, its yield will tend to move toward prevailing money market rates, and may be lower than the yields of the bonds previously held by the Fund and lower than prevailing yields in the bond market.
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.
Preferred stocks are not necessarily correlated with securities markets generally. Rising interest rates may cause the value of the Fund’s investments to decline significantly. Removal of stocks from the index due to maturity, redemption, call features or conversion may cause a decrease in the yield of the index and the Fund.
Diversification and asset allocation may not protect against market risk or loss of principal.
There is no guarantee that dividends will be paid.
The strategies discussed are strictly for illustrative and educational purposes and are not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. There is no guarantee that any strategies discussed will be effective.
This document contains general information only and does not take into account an individual's financial circumstances. This information should not be relied upon as a primary basis for an investment decision. Rather, an assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial advisor before making an investment decision.
The information provided is not intended to be tax advice. Investors should be urged to consult their tax professionals or financial advisors for more information regarding their specific tax situations.
The Funds are distributed by BlackRock Investments, LLC (together with its affiliates, "BlackRock").
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Barclays, Bloomberg Finance L.P., BlackRock Index Services, LLC, Cohen & Steers Capital Management, Inc., European Public Real Estate Association (“EPRA® ”), FTSE International Limited (“FTSE”), ICE Data Services, LLC, 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 or S&P Dow Jones Indices LLC. None of these companies make any representation regarding the advisability of investing in the Funds. With the exception of BlackRock Index Services, LLC, who is an affiliate, BlackRock Investments, LLC is not affiliated with the companies listed above.
Neither FTSE nor NAREIT makes any warranty regarding the FTSE NAREIT Equity REITS 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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