“For some institutional investors, the idea that an ETF never matures or liquidates has been a hurdle,” Matt Tucker, Head of iShares Fixed Income Investment Strategy, said in a Bloomberg article. “These funds have the pricing and liquidity of an ETF plus the finite life you get with an individual bond portfolio.”
The new iShares defined maturity ETFs will be competing with Guggenheim Investments’ line of BulletShares ETFs, which include both investment grade and speculative corporate debt exposure. [Corporate Bond ETFs Target Specific Maturities]
For more information on new product launches, visit our new ETFs category.
Max Chen contributed to this article.