BlackRock has begun rolling out its ‘iBonds’ ETFs in Europe.
Brett Pybus, Global Co-Head of iShares Fixed Income ETFs at BlackRock.
A first for the continent, the suite consists of fixed income ETFs that target bonds maturing in a specific year.
Unlike conventional fixed income ETFs, which hold bonds for a limited period of time to maintain a specific maturity exposure, iBonds ETFs hold their underlying bonds until maturity at which point the fund liquidates.
iBonds ETFs offer regular income (distributions are made quarterly) as well as a lump sum payment at termination, thereby acting similarly to individual bonds but with increased liquidity due to the ETF structure.
By combining iBonds ETFs of varying maturities, investors can build portfolios that meet their future cash requirements.
Brett Pybus, Global Co-Head of iShares Fixed Income ETFs at BlackRock,…
