Complements iShares low-cost investment grade corporate bond ETFs...
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BlackRock has expanded its line-up of iShares corporate bond ETFs with the introduction of iShares 5-10 Year Investment Grade Corporate Bond ETF (Bats: MLQD) and iShares 10+ Year Investment Grade Corporate Bond ETF (Bats: LLQD).
MLQD and LLQD complete iShares suite of low-cost investment grade corporate bond ETFs designed to help investors manage interest rate risk by targeting one of the three major sections of the yield curve.
“We revolutionized the fixed income market fifteen years ago with a liquid, transparent ETF for investors to access investment grade bond exposure,” said Steve Laipply, Head of U.S. iShares Fixed Income Strategy at BlackRock. “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.” MLQD seeks to track the Markit iBoxx USD Liquid Investment Grade Intermediate Index, while LLQD seeks to track the Markit iBoxx USD Liquid Investment Grade Long Index.
MLQD and LLQD complement existing investment grade corporate bond offerings, iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSE Arca: LQD) and iShares 0-5 Year Investment Grade Corporate Bond ETF (Nasdaq: SLQD). It has been a record year for inflows into LQD, with $9.3B gathered through September 12, 2017. MLQD and LLQD begin trading today, each with an expense ratio of 0.06%.
iShares iBonds Dec 2027 Term Corporate ETF In addition to MLQD and LLQD, BlackRock has added iShares iBonds Dec 2027 Term Corporate ETF (NYSE Arca: IBDS).
IBDS seeks investment results of an index composed of U.S. dollar-denominated, investmentgrade corporate bonds maturing in 2027. The Fund will seek to meet its investment objective generally by investing in individual securities which satisfy the criteria of the Barclays December 2027 Maturity Corporate Index.
iShares iBonds® Corporate Bond ETFs are designed to offer investors exposure to investment grade corporate bonds with potential benefits of both ETFs and bonds. Each fund contains a diversified set of securities and seeks to track a Barclays Maturity Corporate Index, and can be bought and sold daily on an exchange. Like a bond, each fund has periodic distributions of income and a pre-determined date when the fund will close and distribute proceeds to shareholders.