FIBR Profile
iShares U.S. Fixed Income Balanced Risk Factor ETF is designed to offer investors exposure to a balanced risk approach within the U.S. fixed income market. The fund tracks an underlying index that measures the performance of the corporate and mortgage segments of the Bloomberg U.S. Universal Index, with a specific focus on balancing interest rate and credit spread risks. This strategy aims to provide a more stable risk profile by targeting an equal allocation between these two key sources of risk within the fixed income market.
The underlying index of the ETF is structured to include a diverse array of corporate and mortgage-backed securities, reflecting the broader U.S. fixed income market while emphasizing a balanced approach to risk. The fund’s investment strategy involves allocating at least 80% of its assets to the component securities of this index, as well as to To-Be-Announced (TBA) transactions. These TBA transactions are structured to have economic characteristics similar to those of the underlying index components, ensuring that the fund’s exposure remains closely aligned with its benchmark.
Managed by iShares, a leading provider of exchange-traded funds, the ETF benefits from the firm’s extensive expertise in fixed income investing and risk management. iShares employs a sophisticated approach to tracking the underlying index, utilizing advanced portfolio management techniques to maintain the fund’s alignment with its risk targets. The firm’s investment team continuously monitors market conditions and adjusts the fund’s holdings as needed to manage interest rate and credit spread exposures effectively.
The iShares U.S. Fixed Income Balanced Risk Factor ETF is designed to appeal to investors seeking a diversified fixed income solution that balances exposure to interest rate and credit spread risks. By investing in a broad range of corporate and mortgage-backed securities, the fund aims to deliver stable performance while mitigating the impact of market fluctuations. The management team’s focus on maintaining an equal risk allocation helps to provide a more consistent investment experience for those looking to navigate the complexities of the fixed income market.
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