IUSB Profile
The iShares Core Total USD Bond Market ETF is designed to offer investors broad exposure to the U.S. dollar-denominated taxable bond market. The fund tracks an index that encompasses a wide range of bonds, including those rated investment-grade as well as high-yield securities. This comprehensive approach allows investors to gain diversified exposure across various segments of the U.S. bond market, capturing the performance of a broad array of fixed-income securities.
The ETF aims to invest at least 80% of its assets in the securities that make up its underlying index, along with to-be-announced transactions (TBAs) that exhibit economic characteristics substantially similar to those of the index's components. TBAs are forward contracts used in the mortgage-backed securities market, providing additional liquidity and flexibility to the fund's investment strategy. This method ensures that the fund maintains close alignment with the performance of its benchmark index while efficiently managing its bond portfolio.
The underlying index measures the performance of U.S. dollar-denominated taxable bonds, which includes a diverse range of fixed-income instruments. These instruments span various credit qualities and maturities, allowing the fund to capture both investment-grade and high-yield bonds. By including a broad spectrum of bonds, the fund aims to provide investors with a balanced exposure to different segments of the bond market, potentially enhancing returns while managing risk.
Managed by BlackRock Fund Advisors (BFA), a prominent global asset management firm, the iShares Core Total USD Bond Market ETF benefits from BFA's extensive experience and resources in managing fixed-income investments. BFA's expertise in bond market analysis and portfolio management supports the fund's objective of tracking its index effectively. The ETF offers a cost-efficient way for investors to access the entire U.S. bond market, making it a valuable tool for those seeking broad, diversified exposure to taxable bonds.
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