IBHJ Profile
iShares iBonds 2030 Term High Yield and Income ETF is an exchange-traded fund designed to provide investors with exposure to a well-defined segment of the corporate bond market. The fund invests at least 80% of its assets in the component securities of its underlying index, which is specifically structured to include U.S. dollar-denominated, taxable, fixed-rate corporate bonds. These bonds are typically rated high-yield (below investment grade) and investment-grade, with maturities extending up to 2030. The fund’s investment strategy focuses on aligning its portfolio closely with the index to achieve its targeted performance.
In addition to its primary investment in index components, the iShares iBonds 2030 Term High Yield and Income ETF allocates at least 90% of its assets to fixed-income securities that are similar to those in the underlying index. This approach ensures that the fund maintains a high degree of correlation with the index, thereby enhancing its ability to track the index’s performance. By concentrating on fixed-income securities that match the index’s criteria, the fund seeks to provide investors with a reliable income stream and potential capital appreciation.
The ETF is structured to include a mix of high-yield bonds, which offer higher returns due to increased credit risk, and investment-grade bonds, which provide greater stability. This dual approach helps to balance the potential for higher yields with the need for risk management. The fund’s focus on bonds maturing by 2030 provides a clear investment horizon, catering to investors seeking a defined end date for their bond investments.
As a non-diversified fund, the iShares iBonds 2030 Term High Yield and Income ETF is concentrated in a specific segment of the fixed-income market. This concentration allows the fund to closely track its underlying index while targeting a specific maturity profile. The ETF is ideal for investors looking for targeted exposure to high-yield and investment-grade corporate bonds with a fixed maturity date, combining the potential for attractive income with a strategic investment timeline.
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