IMTB Profile
The iShares Core 5-10 Year USD Bond ETF is designed to track the performance of U.S. dollar-denominated taxable bonds with remaining maturities between five and ten years. The fund is structured to provide exposure to a broad range of bonds, including those rated both investment-grade and high yield, offering a diversified approach to fixed-income investing. By focusing on bonds within this specific maturity range, the ETF seeks to balance yield and interest rate risk, making it an appealing option for investors looking for stable income over a medium-term horizon.
The ETF commits to investing at least 80% of its assets in the component securities of the underlying index, as well as in To-Be-Announced (TBA) securities that exhibit economic characteristics substantially identical to those of the index components. This strategy ensures that the fund closely tracks the performance of its benchmark, which measures the U.S. bond market's intermediate-term segment. The fund's holdings typically include a mix of government, corporate, and securitized bonds, providing broad exposure to the fixed-income market.
As part of its investment strategy, the iShares Core 5-10 Year USD Bond ETF may include a variety of bonds, such as U.S. Treasuries, government-related securities, corporate bonds, and mortgage-backed securities. The inclusion of both investment-grade and high-yield bonds allows the fund to capture a wider range of market opportunities, though it also introduces a level of credit risk that investors should consider. The ETF's focus on intermediate-term bonds helps manage duration risk, which is particularly important in varying interest rate environments.
Managed by BlackRock, a leading global asset management firm, the iShares Core 5-10 Year USD Bond ETF is part of the iShares Core series, which is designed to provide cost-efficient, broad-market exposure for long-term investors. The fund's diversified approach and emphasis on intermediate-term bonds make it suitable for investors seeking a balance between income generation and capital preservation. As a core holding in a fixed-income portfolio, the ETF offers a stable and reliable way to gain exposure to the U.S. bond market's key segments.
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