IBDY Targets Investment Grade Corporate Bonds Maturing In 2033

BlackRock has listed the iShares iBonds Dec 2033 Term Corporate ETF (NYSE Arca: IBDY) on the New York Stock Exchange. The new iShares ETF provides access to a portfolio of investment-grade corporate bonds.

IBDY seeks to track the investment results of the Bloomberg December 2033 Maturity Corporate Index. The index holds U.S. dollar-denominated, investment-grade corporate bonds maturing in 2033.

According to BlackRock, the fund combines the defined maturity and regular income distribution characteristics of a bond with the transparency and tradability of a stock. It aims to help investors seek income, build a bond ladder, and manage interest rate risk.

See more: “BlackRock Adds to ETF Suite With Large-Cap Value & Flexible Income Funds

“Advisors are increasingly turning to target maturity ETFs to manage their client interest rate risk,” said VettaFi’s head of research Todd Rosenbluth. “Bond laddering is made easier through the ETF structure with diversification and liquidity benefits.”

The launch of IBDY follows last month’s launch of two actively managed BlackRock ETFs on the NYSE. The BlackRock Large Cap Value ETF (BLCV) invests in large-cap U.S. equities that exhibit value characteristics. Meanwhile, the BlackRock Flexible Income ETF (BINC) targets debt and income-producing securities.

IBDY carries an expense ratio of 0.10%.

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