Global asset manager BlackRock (NYSE:BLK) has launched five new exchange-traded funds (ETFs) as part of its fixed maturity iBonds range, including Europe's first fixed maturity U.S. Treasury ETF. The launch comes after the successful debut of the iBonds range in Europe last month, which followed its introduction in the U.S. three years ago.
IT25 tracks the ICE (NYSE:ICE) 2025 Maturity US Treasury UCITS index, which had a yield of 4.99% as of Monday. The other four corporate bond ETFs track respective Bloomberg indices implementing an ESG screen, meaning they are classified as Article 8 under the Sustainable Financial Disclosure Regulation (SFDR). The iShares iBonds Dec 2025 Term $ Corp UCITS ETF (ID25) and iShares iBonds Dec 2027 Term $ Corp UCITS ETF (ID27) have yields to maturity of 4.08% and 4.04%, respectively, while the euro-denominated counterparts IB25 and IB27 have yields of 5.68% and 5.38%.
“iBonds ETFs are designed to mature like a bond, trade like a stock and diversify like a fund, all in an 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.”
The five ETFs offer exposure to investment-grade corporate bonds across various countries and sectors, and U.S. Treasuries, with fixed maturity dates in December 2025 and 2028. The ETFs are available in both US-dollar and euro-denominated debt.
The newly launched ETFs are listed on European exchanges, including the London Stock Exchange, Deutsche Boerse (ETR:DB1Gn), and Euronext Paris. They carry fees of 0.12%, except for the iShares iBonds Dec 2025 Term $ Treasury UCITS ETF (IT25), which has a total expense ratio (TER) of 0.10%.
This expansion follows BlackRock's unveiling of Europe's first fixed maturity ETFs in August, which also offered exposure to investment-grade corporate bonds with maturities of December 2026 and 2028.
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