IBIE Profile
The iShares iBonds Oct 2028 Term TIPS ETF (IBIE), launched by BlackRock on September 13, 2023, is an exchange-traded fund primarily focused on investment grade fixed income securities. IBIE aims to replicate the performance of a market value-weighted index comprising U.S. Treasury inflation-protected securities (TIPS) with maturities falling between January and October 2028. This ETF is designed to provide investors with exposure to a specific segment of the fixed income market that hedges against inflation.
The underlying index tracked by IBIE consists of inflation-protected public obligations issued by the U.S. Treasury, commonly referred to as TIPS, ensuring a concentration on securities that adjust for inflation based on the Consumer Price Index. IBIE is structured to conclude operations upon the maturity of its constituent securities in October 2028, 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 constitute the index, aiming to closely mirror its performance.
Investors in IBIE benefit from its targeted exposure to TIPS maturing within the specified timeframe, providing a precise instrument for managing inflation risk in investment portfolios. By focusing on securities issued directly by the U.S. Treasury and employing a market value-weighted methodology, IBIE offers a transparent and potentially less volatile investment opportunity compared to traditional bonds amidst varying economic conditions.
Managed by BlackRock, a global leader in asset management, IBIE exemplifies the firm's commitment to offering accessible and efficient investment solutions that cater to evolving investor preferences. Leveraging extensive expertise in the fixed income market, BlackRock ensures that IBIE is well-positioned to effectively track the performance of its designated index, offering investors a reliable tool for implementing inflation-linked investment strategies.
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