With interest rates poised to rise multiple times this year, fixed income investors may want to consider alternatives to traditional aggregate bond ETFs. The iShares Edge U.S. Fixed Income Balanced Risk ETF (CBOE: FIBR) can be a smart alternative to prosaic bond ETFs.
The iShares Edge U.S. Fixed Income Balanced Risk ETF seeks to balance interest rate risk and credit risk, the two primary drivers of bond returns. Additionally, the active ETF also helps address investors’ need for income and their concern about rising rate risks ahead.
FIBR, which debuted in 2015, follows the Bloomberg Barclays U.S. Fixed Income Balanced Risk Index and holds 782 bonds. That index is “composed of taxable U.S. dollar-denominated bonds and U.S. Treasury futures, which targets an equal allocation between interest rate and credit spread risk,” according to iShares.