IBIC Profile
The iShares iBonds Oct 2026 Term TIPS ETF (IBIC), introduced by BlackRock on September 13, 2023, represents an exchange-traded fund specializing in investment grade fixed income securities. IBIC aims to replicate the performance of a market value-weighted index comprising U.S. Treasury inflation-protected securities (TIPS) maturing from January through October 2026. This ETF is tailored to provide investors exposure to a targeted segment of the fixed income market focused on safeguarding against inflation.
The underlying index tracked by IBIC includes inflation-protected public obligations issued by the U.S. Treasury, commonly known as TIPS, ensuring a focus on securities that adjust for inflation based on the Consumer Price Index. IBIC is structured to conclude operations upon the maturity of its constituent securities in October 2026, 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 comprise the index, seeking to closely mirror its performance.
Investors in IBIC benefit from its precise exposure to TIPS maturing within the specified timeframe, providing a targeted instrument for managing inflation risk within investment portfolios. By concentrating on securities issued directly by the U.S. Treasury and employing a market value-weighted approach, IBIC offers a transparent and potentially less volatile investment opportunity compared to conventional bonds in fluctuating economic environments.
Managed by BlackRock, a preeminent global asset management firm, IBIC underscores the firm's commitment to delivering accessible and efficient investment solutions that meet evolving investor needs. BlackRock's deep expertise in the fixed income market ensures IBIC is positioned to effectively track the performance of its designated index, providing investors with a dependable vehicle for implementing inflation-linked investment strategies.
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