BlackRock’s iShares has expanded its line of corporate debt ETFs to help fixed-income investors better manage their yield curve exposure in a rising rate environment ahead.
The recently launched iShares 5-10 Year Investment Grade Corporate Bond ETF (BATS: MLQD) and iShares 10+ Year Investment Grade Corporate Bond ETF (BATS: LLQD) both come with a 0.06% expense ratio.
“We revolutionized the fixed income market fifteen years ago with a liquid, transparent ETF for investors to access investment grade bond exposure,” Steve Laipply, Head of U.S. iShares Fixed Income Strategy at BlackRock, said in a note. “With yields remaining stubbornly low, demand for bond ETFs hit record levels in the first half of this year and we believe even more investors will utilize bond ETFs to seek income and help manage risk and liquidity going forward.”
The two new corporate bond ETFs will complement the iShares iBoxx $ Investment Grade Corporate Bond ETF (NYESArca: LQD). MLQD shows a 6.35 year duration and LLQD has a 13.68 year duration while LQD has a 8.39 year duration.