IGLB Profile
The iShares 10+ Year Investment Grade Corporate Bond ETF is designed to provide investors with exposure to long-term, high-quality corporate bonds. Managed by BlackRock Fund Advisors (BFA), the fund seeks to track the performance of an index composed of investment-grade corporate bonds with maturities of ten years or more. This index includes bonds issued by both U.S. and non-U.S. entities, all of which are denominated in U.S. dollars and publicly issued within the U.S. market.
In order to align closely with the performance of its benchmark, the fund commits to investing at least 80% of its assets in securities that are part of the index. This strategic allocation ensures that the fund’s holdings mirror the index's composition, providing investors with a representative exposure to long-term investment-grade corporate bonds. Additionally, the fund will invest at least 90% of its assets in fixed income securities similar to those included in the underlying index, adhering to BFA's guidelines to enhance tracking accuracy.
To further support its objective of closely tracking the index, the fund may invest in derivatives such as futures, options, and swaps. These instruments are used to manage interest rate and credit risks and to optimize the fund's ability to mirror the index's performance. However, the fund limits these investments to a maximum of 10% of its assets to maintain its focus on direct bond holdings while managing tracking error.
The ETF is tailored for investors seeking exposure to long-term corporate bonds with high credit quality. By focusing on bonds with maturities exceeding ten years, the fund targets a segment of the bond market that is less sensitive to short-term fluctuations but offers potentially higher yields. The investment strategy emphasizes both diversification and adherence to index performance, aiming to provide stable returns and income over the long term.
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