iShares UK Corporate Bonds 0 – 5 Years

ETF description

This ETF invests in corporate bonds with maturities of between one and five years, issued by companies from various sectors. Corporate bonds are debt securities that companies use to raise capital, and they typically pay regular interest over a set period. By focusing on bonds with shorter maturities, this ETF aims to reduce sensitivity to changes in interest rates, providing greater price stability compared to longer‑term bonds.

This ETF may appeal to investors who are seeking regular income through bond interest payments but want to minimize the risk associated with longer‑term bonds. It could suit those looking for a relatively conservative investment within the corporate bond market, offering both income and lower price volatility.

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 UK Corporate Bonds 0 – 5 Years index provides investors with targeted exposure to short‑term investment‑grade corporate bonds issued by UK companies, focusing on maturities between 0 and 5 years. By investing in corporate debt with moderate yield potential and low interest rate sensitivity, the index aims to capture the performance of short‑term corporate bonds while maintaining a balance of yield and risk.