IGOV Profile
The iShares International Treasury Bond ETF is designed to provide investors with exposure to sovereign debt from developed international markets, excluding the U.S. The fund tracks an underlying index that measures the performance of fixed-rate, local currency, investment-grade government bonds issued by developed countries. By focusing on these high-quality sovereign bonds, the ETF aims to offer a stable source of income with a lower risk profile compared to other types of bonds.
Under normal market conditions, the ETF investsat least 80% of its assets in securities that comprise its benchmark index. This index is composed of fixed-rate, local currency, investment-grade government bonds from selected developed markets outside the U.S. Additionally, the fund ensures that at least 90% of its assets are allocated to fixed income securities that are included in the index. This strategy aligns the fund’s holdings closely with the performance of the index, providing investors with targeted international fixed income exposure.
The iShares International Treasury Bond ETF offers diversification across multiple sovereign issuers, reducing concentration risk by holding bonds from various developed countries. This diversification can help mitigate the impact of economic fluctuations in any single country and enhance the stability of returns. The focus on investment-grade bonds further ensures a high level of credit quality, reflecting the low-risk nature of the fund’s investment strategy.
Managed by iShares, a leading provider of exchange-traded funds, the ETF benefits from a robust management infrastructure and a disciplined investment approach. The fund is non-diversified, meaning it may have significant exposure to a smaller number of countries or securities compared to more broadly diversified funds. However, this focused strategy allows for more precise targeting of international government debt, catering to investors seeking exposure to high-quality sovereign bonds from developed economies.
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