ILTB Profile
The iShares Core 10+ Year USD Bond ETF is designed to track the performance of the Bloomberg U.S. 10-20 Year Government/Credit Bond Index, which includes U.S. dollar-denominated taxable bonds with remaining maturities exceeding ten years. This index encompasses both investment-grade and high-yield bonds, offering broad exposure to long-term fixed-income securities. By focusing on bonds with extended maturities, the ETF aims to provide investors with access to higher yields and potential income over a longer duration while capturing the performance of a diverse range of U.S. dollar-denominated bonds.
The fund commits to investing at least 80% of its assets in the securities that comprise its underlying index or in investments with comparable economic characteristics. This strategy ensures that the ETF's portfolio closely aligns with the index's composition, reflecting its performance and risk profile. The ETF may also invest in Mortgage-Backed Securities (MBS) and other instruments that have similar economic attributes to maintain alignment with the index, providing flexibility in managing liquidity and interest rate risk.
The Bloomberg U.S. 10-20 Year Government/Credit Bond Index includes a broad array of U.S. Treasury, government agency, and corporate bonds with long maturities. This extensive coverage allows the ETF to capture the performance of bonds across various sectors and credit qualities. By including both investment-grade and high-yield bonds, the index offers a balanced exposure to long-term fixed-income securities, catering to investors seeking stable income with the potential for higher returns associated with longer-duration bonds.
Managed by BlackRock, the iShares Core 10+ Year USD Bond ETF benefits from the firm's global investment expertise and resources. BlackRock’s sophisticated investment strategies are employed to enhance the ETF’s performance and manage interest rate and credit risks effectively. Investors looking to diversify their fixed-income portfolios with long-duration bonds may find this ETF a strategic choice, providing exposure to a wide range of U.S. dollar-denominated bonds with extended maturities.
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