BlackRock launches one new Credit Bond UCITS ETFs on the LSE

iShares $ Intermediate Credit Bond UCITS ETF

The Index aims to reflect the performance of a subset of FI securities within the Bloomberg Barclays US Credit Index. The Index measures the performance of US Dollar denominated, fixed rate, investment grade, taxable corporate and government-related bonds that have a remaining maturity of over 1 and less than 10 years. The Index uses a market capitalisation weighted methodology.

Market capitalisation is the market value of outstanding bond issuance. Currently, the bonds eligible for inclusion in the Index include US Dollar denominated corporate bonds (issued by companies in the industrial, financial and utilities industry sectors) and government-related bonds that: (i) are issued by issuers who have complied with the full listing requirements of the Securities and Exchange Commission for US domestic market listings; (ii) are rated investment grade, taking the middle rating given by Fitch, Moody’s and Standard & Poor’s Ratings Services; and; (iii) have at least US$250 million amount outstanding per individual bond. Bonds that convert from fixed rate to floating rate will be removed from the Index one year prior to conversion. The FI securities will, at the time of inclusion in the Index, be investment grade (i.e. meet a specified level of creditworthiness).

The Parent Index measures the performance of the investment grade, US Dollar denominated, fixed-rate, taxable corporate and government related bond markets. The Parent Index is composed of the Bloomberg Barclays US Corporate Index and a non-corporate component that includes non-US government agencies, sovereigns, supranationals and local authorities.

The Fund uses optimising techniques to achieve a similar return to its Index. These may include the strategic selection of certain securities that make up the Index or other FI securities which provide similar performance to certain constituent securities. These may also include the use of financial derivative instruments (FDIs) (i.e. investments the prices of which are based on one or more underlying assets). FDIs may be used for direct investment purposes.

The Fund may also engage in short-term secured lending of its investments to certain eligible third parties to generate additional income to off-set the costs of the Fund.