iShares EUR Ultrashort Bond

ETF description

This ETF is designed to offer exposure to a diversified range of very short‑term bonds denominated in euros. The bonds in this fund typically have maturities of less than one year, making it a potential option for investors seeking minimal sensitivity to interest rate changes and relatively stable returns. The fund includes bonds issued by a mix of governments, corporations, and other entities with strong credit ratings, aiming to balance security and liquidity.

This ETF may appeal to investors looking for a low‑risk place to allocate funds over a short time horizon. It could be a useful tool for managing cash or as a buffer in a portfolio during periods of market uncertainty. Since it focuses on euro‑denominated bonds, it avoids currency risks for euro‑based investors, adding to its appeal for those seeking stability within the Eurozone.

Issuer details

iShares ETFs are issued and managed by BlackRock, the world’s largest asset management company.

With 800+ products globally and over $2trn in assets (as at June 2024), iShares ETFs are a flexible, low‑cost way for investors to gain exposure to various market segments, including fixed income, emerging markets and broad‑based indexes.

Index details

The Markit iBoxx EUR Liquid Investment Grade Ultrashort Index is designed to provide a balanced representation of the EUR denominated investment grade ultrashort credit market. Currently, the index offers exposure to ultrashort corporate bonds, but is designed to add additional fixed income instruments over time as warranted. The index covers fixed rate bonds maturing between 0 and 1 year and floating rate securities with a time to maturity between 0 and 3 years. The index is rebalanced on a monthly basis and is market‑value weighted with a cap on each issuer of 3%.