From today (7 September0, three new ETFs available on the London Stock Exchange, investing in US treasuries and investment grade corporate bonds.
The iBonds range debuted in Europe last month, three years after BlackRock launched the range in the US.
Among those launched today, the iShares iBonds Dec 2025 Term $ Treasury UCITS ETF provides exposure to US government debt through the ICE 2025 Maturity US Treasury UCITS index and is classified as Article 6.
ESG bond market on track to reach $1trn total issuance in 2023
The index yield to maturity sits at 4.99% as of 4 September, according to BlackRock.
The other two, both classified as Article 8, are the iShares iBonds Dec 2025 Term $ Corp UCITS ETF and iShares iBonds Dec 2027 Term $ Corp UCITS ETF.
Their index yield to maturity is 5.68% and 5.38% respectively, and they track the Bloomberg MSCI December 2025 Maturity USD Corporate ESG Screened index and the Bloomberg MSCI December 2027 Maturity USD Corporate ESG Screened index.
The iShares iBonds Dec 2025 Term $ Treasury UCITS ETF has a total expense ratio of 0.1%, while the other two funds have a TER of 0.12%.
Two other funds, the iShares iBonds Dec 2025 Term € Corp UCITS ETF and iShares iBonds Dec 2027 Term € Corp UCITS ETF, were also launched today, available on Xetra and Euronext Paris.
“iBonds ETFs are designed to mature like a bond, trade like a stock and diversify like a fund, all in a cost-efficient and transparent ETF wrapper,” said Brett Pybus, global co-head of iShares fixed income ETFs at BlackRock.
“As the pool of iBonds UCITS ETFs grows, investors will be able to enjoy additional versatility, enabling them to curate portfolios to meet their needs.”
