Please note: The following article provides insights into BlackRock’s introduction of five iShares ETFs designed to invest in the U.S. Treasury Inflation-Protected Securities (TIPS) with varying maturities. These TIPS funds offer investors opportunities for inflation protection, building bond ladders, and managing interest rate risk.
BlackRock, a prominent financial institution, has recently launched a series of five iShares ETFs, focusing on U.S. Treasury Inflation-Protected Securities (TIPS) with different maturity dates. These TIPS funds serve as valuable tools for investors aiming to safeguard against inflation, construct diversified bond ladders, and effectively manage interest rate-related risks.
The newly introduced iShares ETFs include:
- The iShares iBonds Oct 2024 Term TIPS ETF (NYMARKET:IBIA)
- The iShares iBonds Oct 2025 Term TIPS ETF (NYMARKET:IBIB)
- The iShares iBonds Oct 2026 Term TIPS ETF (NYMARKET:IBIC)
- The iShares iBonds Oct 2027 Term TIPS ETF (NYMARKET:IBID)
- The iShares iBonds Oct 2028 Term TIPS ETF (NYMARKET:IBIE)
Each of these funds is designed to target TIPS with specific maturity dates, specifically those maturing on October 15 of different years. For instance, IBIA is designed to encompass TIPS maturing between January 1, 2024, and October 15, 2024, while IBIB focuses on TIPS with maturities from January 1, 2025, to October 15, 2025, and so forth.
BlackRock’s ETF lineup also includes established target maturity ETFs, such as the iShares iBonds Dec 2024 Term Corporate ETF (IBDP), which focuses on investment-grade corporate bonds, and the iShares iBonds Dec 2024 Term Muni Bond ETF (IBMM), which specializes in municipal bonds. Additionally, BlackRock listed the iShares iBonds Dec 2033 Term Corporate ETF (IBDY) in June, targeting investment-grade corporate bonds maturing in 2033.
Todd Rosenbluth, Head of Research at VettaFi, noted, “BlackRock has a strong suite of target maturity ETFs to help advisors and clients manage their duration. It’s great to see them expand the lineup to include TIPS-based products too.”
These TIPS ETFs come with a competitive expense ratio of 0.10%, making them an appealing choice for investors seeking inflation protection and interest rate risk managementETFs, focusing on U.S. Treasury Inflation-Protected Securities (TIPS) with different maturity dates. These TIPS funds serve as valuable tools for investors aiming to safeguard against inflation, construct diversified bond ladders, and effectively manage interest rate-related risks.
