iShares USD Short Duration Corp Bond

ETF description

This ETF focuses on providing exposure to short‑term corporate bonds issued by companies. These bonds have relatively short maturities, typically less than five years, which can make them less sensitive to changes in interest rates compared to longer‑term bonds. By investing in a broad selection of corporate bonds, this ETF seeks to capture income from the interest payments these bonds generate while maintaining lower risk levels associated with shorter durations.

Investors who are looking for a way to earn income from corporate bonds but want to limit the impact of interest rate fluctuations may find this ETF appealing. It may also suit those seeking to complement a portfolio with fixed‑income assets, as the short duration of the bonds can provide greater stability compared to bonds with longer maturities.

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 USD Liquid Investment Grade 0 – 5 Index is a market‑value weighted index of liquid USD investment grade bonds with a short duration. The index is designed to provide a balanced representation of the USD denominated short duration investment grade corporate bond universe.