iShares iBonds Dec 2028 Term Corporate ETF (IBDT)

Overview

The iShares iBonds Dec 2028 Term Corporate ETF (ICCR) is an exchange-traded fund that seeks to track the performance of a specific index of investment-grade corporate bonds with maturities around December 2028. It aims to provide investors with exposure to a diversified portfolio of corporate debt, offering a fixed maturity date for capital preservation and predictable income.

Reputation and Reliability

iShares, a subsidiary of BlackRock, is one of the world's largest ETF providers with a strong reputation for reliability and a vast array of investment products. BlackRock is a global leader in investment management, risk management, and advisory services.

Management Expertise

BlackRock benefits from extensive resources and a deep pool of talent in fixed income management, employing sophisticated strategies and risk management techniques to oversee its ETF offerings.

Goal

The primary investment goal of the iShares iBonds Dec 2028 Term Corporate ETF is to provide investors with exposure to a portfolio of investment-grade corporate bonds that are expected to mature in or around December 2028. It aims to deliver income through coupon payments and return the principal at maturity.

Investment Approach and Strategy

Strategy: The ETF aims to track the performance of a specific index of investment-grade corporate bonds with a defined maturity date. This is a passive investment strategy.

Composition The ETF primarily holds a portfolio of investment-grade corporate bonds with maturities clustered around December 2028. These bonds are typically issued by corporations with good credit ratings.

Market Share: Specific market share data for individual ETFs is dynamic and proprietary. However, iShares is a dominant player in the ETF market, and its bond ETFs are widely held.

Total Net Assets (AUM): 1100000000

Key Competitors

• Vanguard Short-Term Corporate Bond ETF (VCSH)
• iShares iBonds Dec 2027 Term Corporate ETF (ICCA)
• iShares iBonds Dec 2029 Term Corporate ETF (ICCD)

Competitive Landscape

The corporate bond ETF market is highly competitive, with major providers like Vanguard and iShares offering a wide range of products. ICCR's advantage lies in its specific maturity date, appealing to investors seeking predictable principal repayment. However, its focus on a narrow maturity window can limit flexibility compared to broader corporate bond ETFs.

Historical Performance: [object Object]

Benchmark Comparison: The ETF aims to track an index of investment-grade corporate bonds maturing around 2028. Its performance is expected to closely mirror that of its underlying benchmark, with minor deviations due to fees and tracking error.

Expense Ratio: 0.07

Average Trading Volume

The ETF typically has sufficient average trading volume to facilitate easy buying and selling for most retail investors.

Bid-Ask Spread

The bid-ask spread for ICCR is generally tight, reflecting its liquidity and the active trading of its underlying bonds.

Market Environment Factors

Interest rate movements significantly impact bond prices, with rising rates generally leading to lower bond values. The credit quality of corporate issuers and broader economic conditions also influence the ETF's performance.

Growth Trajectory

The growth of ICCR is tied to investor demand for targeted maturity bond funds and the overall corporate bond market. Its strategy is fixed by its maturity, meaning growth is primarily driven by inflows and the reinvestment of coupon payments.

Competitive Edge

ICCR's primary competitive advantage is its defined maturity date, offering a predictable endpoint for investment capital and principal return. This 'bond laddering' strategy simplifies portfolio management for investors seeking to manage interest rate risk over a specific time horizon. It provides a clear, single maturity point rather than a broad range, appealing to a specific investor need for defined maturity exposure.

Volatility

The historical volatility of ICCR is generally lower than that of equity ETFs, as it is composed of fixed-income securities. However, it is subject to interest rate risk and credit risk.

Market Risk

The ETF is exposed to interest rate risk, where rising rates can decrease the value of existing bonds. It also carries credit risk, the possibility that bond issuers may default on their payments.

Ideal Investor Profile

The ideal investor for ICCR is one seeking a fixed-maturity investment in investment-grade corporate bonds, aiming for predictable income and principal return at a specific date. This could include individuals nearing retirement or those with short-to-medium term capital preservation goals.

Market Risk

ICCR is best suited for long-term investors who want to lock in current yields for a specific period and then receive their principal back, rather than active traders.

The iShares iBonds Dec 2028 Term Corporate ETF (ICCR) offers a targeted investment in investment-grade corporate bonds maturing around December 2028. Its primary advantage is the predictable maturity date, appealing to investors seeking capital preservation and income over a defined period. While it benefits from BlackRock's expertise, it is subject to interest rate and credit risks inherent in the bond market. It's a suitable choice for investors with specific maturity goals rather than broad market exposure.

Data Sources:

• iShares Official Website
• BlackRock Investor Relations
• Financial Data Providers (e.g., Morningstar, Bloomberg)

Disclaimers:

This information is for informational purposes only and does not constitute financial advice. Past performance is not indicative of future results. Investors should consult with a qualified financial advisor before making any investment decisions.