iShares EUR Corp Bond 1 – 5yr

ETF description

This ETF focuses on investment‑grade corporate bonds with maturities between one and five years. Investment‑grade bonds are issued by companies that have higher credit ratings, indicating a lower risk of default compared to lower‑rated bonds. By concentrating on bonds with shorter maturities, this fund is designed to offer a balance between income generation and reduced sensitivity to interest rate changes, as shorter‑term bonds are generally less affected by rising or falling interest rates.

The bonds included in this fund are denominated in euros, making it particularly relevant for investors who are seeking exposure to the European corporate debt market and want to avoid currency exchange risks associated with other regions.

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 Bloomberg Euro Area Liquid Corporates 1 – 5 Year Total Return Index is a market capitalization weighted index. This Index represents liquid corporate bonds with a time to maturity of at least 1 year, but no more than 5 years, issued by investment grade companies. Debt issued by financial and nonfinancial companies are eligible for the index. The issuer domicile is relevant and only an issuer from a Eurozone country, issuing in EUR is included. The bonds are valued daily based on Bid prices, however on rebalancing new bonds enter the index at the Ask price and they are removed based on the Bid Price. The index is rebalanced on a monthly basis.