IBIA Profile
The iShares iBonds Oct 2024 Term TIPS ETF (IBIA), launched by BlackRock on September 13, 2023, is an exchange-traded fund primarily investing in investment grade fixed income securities. IBIA aims to mirror the performance of a market value-weighted index comprising U.S. Treasury inflation-protected securities (TIPS) maturing between January and October 2024. This ETF is designed to provide investors with exposure to the specific segment of the fixed income market that seeks to hedge against inflation.
The underlying index that IBIA tracks includes inflation-protected public obligations issued by the U.S. Treasury, ensuring a focus on securities that adjust for inflation as measured by the Consumer Price Index. As of the launch date, IBIA is set to terminate upon the maturity of its constituent securities in October 2024, aligning its investment horizon with the maturity dates of the included TIPS. The fund adheres to a strategy where at least 80% of its assets are invested in the TIPS that make up the index, thereby aiming to closely replicate its performance.
Investors in IBIA benefit from its targeted exposure to TIPS with maturities within the specified timeframe, providing a precise instrument for those seeking to manage inflation risk in their investment portfolios. By focusing on securities directly issued by the U.S. Treasury and following a market value-weighted approach, IBIA offers a transparent and potentially less volatile investment opportunity compared to traditional bonds in fluctuating economic environments.
Managed by BlackRock, a global leader in asset management, IBIA reflects the firm's commitment to providing accessible and efficient investment vehicles that align with evolving investor needs. BlackRock's extensive expertise in fixed income markets ensures that IBIA is positioned to deliver on its objective of tracking the performance of its designated index, offering investors a reliable tool for managing inflation-linked investment strategies.
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