IGIB Profile
The iShares 5-10 Year Investment Grade Corporate Bond ETF is a targeted exchange-traded fund designed to provide investors with exposure to high-quality, intermediate-term corporate bonds. Managed by BlackRock Fund Advisors (BFA), the fund aims to replicate the performance of its underlying index, which focuses on investment-grade corporate bonds with maturities ranging from five to ten years.
To achieve its investment objectives, the fund will allocate at least 80% of its assets to securities that are constituents of the index. This ensures that the fund closely tracks the performance of its benchmark by maintaining a significant portion of its holdings in bonds that meet the index's criteria. Additionally, the fund will invest at least 90% of its total assets in fixed income securities similar to those in the underlying index, adhering to the guidelines set by BFA to maintain alignment with the index's performance.
The fund may utilize up to 10% of its assets in derivatives such as futures, options, and swaps. These financial instruments are employed to help manage the fund’s exposure to interest rate and credit risks, thereby aiding in its ability to track the index more accurately. Furthermore, the fund may invest in fixed income securities outside the scope of the index if these investments are deemed beneficial for tracking the index's performance.
This ETF is specifically designed for investors seeking a stable income stream from high-quality corporate bonds with a medium-term maturity profile. The fund’s investment strategy focuses on delivering consistent returns while managing interest rate and credit risk through a well-diversified portfolio of investment-grade corporate bonds. The strategic use of derivatives and selective investments outside the index aim to enhance tracking efficiency and minimize tracking error, providing investors with a reliable tool for fixed income exposure.
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