BlackRock has launched five iShares ETFs that invest in U.S. Treasury Inflation-Protected Securities (TIPS) of varying maturities. Investors can use the TIPS funds to seek inflation protection, build a bond ladder, and manage interest rate risk.
The funds are:
- The iShares iBonds Oct 2024 Term TIPS ETF (NYSE Arca: IBIA)
- The iShares iBonds Oct 2025 Term TIPS ETF (NYSE Arca: IBIB)
- The iShares iBonds Oct 2026 Term TIPS ETF (NYSE Arca: IBIC)
- The iShares iBonds Oct 2027 Term TIPS ETF (NYSE Arca: IBID)
- The iShares iBonds Oct 2028 Term TIPS ETF (NYSE Arca: IBIE)
The funds target TIPS that mature on Oct. 15 of different years. For example, IBIA targets TIPS maturing between January 1, 2024, and October 15, 2024. IBIB, meanwhile, targets TIPS maturing between January 1, 2025, and October 15, 2025. And so on.
The funds join a lineup of established target maturity ETFs that includes the corporate bond-focused iShares iBonds Dec 2024 Term Corporate ETF (IBDP) and the muni-focused iShares iBonds Dec 2024 Term Muni Bond ETF (IBMM). And in June, BlackRock listed the iShares iBonds Dec 2033 Term Corporate ETF (IBDY), which targets investment-grade corporate bonds maturing in 2033.
“BlackRock has a strong suite of target maturity ETFs to help advisors and clients manage their duration,” said VettaFi’s head of research Todd Rosenbluth. “It’s great to see them expand the lineup to include TIPS based products too.”
The funds carry an expense ratio of 0.10%.
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