IBDX Profile
The iShares iBonds Dec 2032 Term Corporate ETF is designed to provide investors with exposure to a diversified portfolio of corporate bonds that are set to mature in December 2032. Under normal market conditions, the fund will invest at least 80% of its assets in the securities that comprise its underlying index. This index is composed of corporate bonds issued by a range of entities, offering a targeted investment strategy that focuses on bonds maturing within a specified timeframe.
The fund aims to closely track the performance of the index by investing in securities that mirror the index’s economic characteristics. To achieve this, it will allocate at least 90% of its assets to fixed income securities that are included in the index. These investments primarily consist of corporate bonds that are rated investment grade or higher, providing a balance between yield and credit quality. This approach helps ensure that the fund's performance is closely aligned with the index's performance, except during the final months of the fund's operation.
The ETF's investment strategy involves a concentration on corporate bonds with a fixed maturity date in December 2032. This specific maturity profile allows the fund to target bonds that will mature within a set period, offering predictable returns and reduced interest rate risk as the maturity date approaches. The fund's strategy includes a diversified selection of corporate issuers, aimed at providing a stable income stream while managing credit risk through diversification across different sectors and issuers.
As a non-diversified fund, the iShares iBonds Dec 2032 Term Corporate ETF focuses exclusively on bonds within its index, without investing in other asset classes. This concentration on corporate bonds provides investors with a targeted exposure to investment-grade corporate debt maturing in December 2032. The fund’s design is suitable for investors seeking to match their investment horizon with the fund's maturity date, providing a predictable and stable return profile while mitigating the risks associated with longer-term bonds and broader market fluctuations.
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