BlackRock launches new iShares iBonds UCITS ETFs as range crosses $6.3bn in AUM

• iBonds are bond ETFs with fixed maturity dates. iBonds ETFs offer accumulating and distributing share classes and pay a final payout at maturity,
• These iBonds ETFs offer a diversified portfolio of investment grade corporate bonds providing investors access across various countries and sectors
• As of October 2024, European-domiciled iShares iBonds ETFs have raised $4.2B in AUM YTD, with fixed maturity ETFs representing 8% of all Fixed Income UCITS ETF flows YTD2

iShares iBonds Dec 2031 Term $/€ Corp UCITS ETF

iShares iBonds Dec 2032 Term $/€ Corp UCITS ETF

iShares iBonds Dec 2033 Term $/€ Corp UCITS ETF

iShares iBonds Dec 2034 Term $/€ Corp UCITS ETF

BlackRock today expanded its iShares iBonds UCITS ETF franchise with the launch of eight iShares iBonds ETFs based on investment grade (IG) corporate bond exposures, extending the iShares range of fixed maturity UCITS ETFs to 25 funds with maturities ranging from 2025 to 2034. The new iBonds ETFs aim to provide affordable access to the corporate bond market, enhanced by the cost efficiency, transparency, liquidity, and diversification of investing through ETFs.

iBonds ETFs hold diverse bonds with similar maturity dates. Each ETF provides regular interest payments and distributes a final payout in its stated maturity year. Designed to mature like a bond, trade like a stock, and diversify like a fund, iBonds ETFs make bond laddering simpler with only a few ETFs rather than researching and purchasing numerous individual bonds.

These new iBonds ETFs provide additional maturities in IG corporate debt to the iBonds range, across various countries and sectors in each ETF. The ETFs offer four defined maturity dates in December 2031, 2032, 2033 and 2034, across $ and € in IG, giving investors flexibility across currencies, maturities, and countries.

“As the range of iBonds UCITS ETFs grows, investors will be able to benefit from additional versatility to meet specific portfolio needs and expanding use-cases such as bond laddering,” said Brett Pybus, Global Co-Head of iShares Fixed Income ETFs at BlackRock. “These new iBonds ETFs provide additional choice to clients who aim to lock in yields targeting a specific point on the curve coupled with the operational efficiency and convenience of the ETF wrapper.”

iBonds ETFs can be used by investors to complement existing investment vehicles, in an easily understood structure, which aims to achieve a return through a combination of capital growth and the income on the fund’s assets which is derived from the underlying bonds’ coupon payments. The ETF suite can also be used to add scale to bond portfolios offered by investment advisors and enhance operational simplicity. iBonds are available through wealth management platforms, including digital, and brokerages across Europe.

Investors can also use these UCITS iBonds to build scalable, diversified bond ladders. By buying bonds with differing maturity dates, investors can stagger final payouts and reinvest into funds with subsequent consecutive maturities – creating bond ladders. The unique structure of iBonds ETFs makes it easier for investors to structure their investments to meet shorter term goals and capture defined yields over set investment periods.

BlackRock has an over 14-year proven track record in managing iBonds and fixed maturity ETFs, having launched 107 iBonds ETFs3 since inception with $36bn invested across the iBonds franchise globally4 . In EMEA, the iBonds UCITS ETFs had an accelerated and well received launch with over $6.3bn5 raised since August 2023 across 17 products with various maturities.