Modern Investor - For Professional Investors

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

BlackRock launches two bond ETFs amid record flows

BlackRock launches two bond ETFs amid record flows

BlackRock has launched two fixed income exchange traded funds (ETFs) as investors pour into global bond ETFs.

The iShares $ Intermediate Credit Bond Ucits (ICBU) and iShares $ TIPS 0-5 Ucits ETF (TIP5) ETFs are designed to provide investors with a greater granularity in US bond exposure.

The iShares $ Intermediate Credit Bond Ucits ETF (ICBU) invests in a subset of US investment grade bonds— with a maturity of between one and 10 years. 

The iShares $ TIPS 0-5 Ucits ETF (TIP5) invests in short-term Treasury Inflation-Protected Securities—with the objective of providing an inflation hedge.

The total expense ratios (TER) for the funds are 0.10% for iShares $ TIPS 0-5 UCITS ETF and 0.15% for the iShares $ Intermediate Credit Bond UCITS ETF.

‘Our aim is to empower investors when investing in the bond markets, and more and more clients are coming to us with ideas for product launches,’ said Brett Olson, head of iShares fixed income.

‘This thirst for granularity is symptomatic of a broader shift among asset allocators towards “being active with passive” to meet their desired goals.

'We expect bond ETFs to become more engrained as the tool investors – from funds buyers to bond buyers – look to form part, or in many cases the basis, of their bond allocations.’

The global bond ETF industry achieved its best quarter on record with $44.5 billion (£34.4 billion) inflows in the first quarter of 2017.

 

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Events
  • Citywire Luxembourg Forum

    Citywire Luxembourg Forum

  • Citywire DACH 2017

    Citywire DACH 2017

  • Citywire Italy 2017

    Citywire Italy 2017

  • Citywire Berlin 2017

    Citywire Berlin 2017

  • Citywire Miami 2017

    Citywire Miami 2017

  • Citywire Professional Buyer

    Citywire Professional Buyer

  • Citywire Madrid 2017

    Citywire Madrid 2017

  • Citywire Switzerland Retreat 2017

    Citywire Switzerland Retreat 2017

  • Citywire Amsterdam 2017

    Citywire Amsterdam 2017

  • Citywire Frankfurt 2017

    Citywire Frankfurt 2017

  • Citywire Alternative Ucits Retreat 2017

    Citywire Alternative Ucits Retreat 2017

  • Citywire Paris 2017

    Citywire Paris 2017

  • Citywire Milan 2017

    Citywire Milan 2017

  • Citywire Deutschland 2017

    Citywire Deutschland 2017

  • Citywire DACH 2017

    Citywire DACH 2017

  • Citywire Italy 2016

    Citywire Italy 2016

  • Citywire Milan 2016

    Citywire Milan 2016

  • Citywire Alt Ucits 2016

    Citywire Alt Ucits 2016