BlackRock Launches Innovative iBonds Fixed Maturity ETFs in Europe

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BlackRock has introduced a groundbreaking suite of iBonds ETFs in Europe, revolutionizing the fixed income market. These ETFs, the first of their kind, behave like bonds and mature on specific dates. They offer a diversified portfolio of investment-grade corporate bonds with similar maturity dates, providing investors with cost-effective access to the corporate bond market while maintaining the transparency, liquidity, and diversification benefits of ETFs.

These iBonds ETFs, which come in four variations, offer exposure to investment-grade corporate bonds across various countries and sectors. With defined maturity dates in both USD and EUR (December 2026 and 2028), these ETFs give investors the flexibility to choose across currencies, maturities, and countries, making them an attractive addition to savings accounts.

Designed to be easily understood, iBonds ETFs aim to achieve returns through a combination of capital growth and income from underlying bonds’ coupon payments. They are not only suitable for individual investors looking to complement their savings but also for investment advisors aiming to enhance bond portfolios with operational simplicity. Each iBonds ETF holds a diversified basket of bonds, reducing the need to source and manage individual bonds.

Brett Pybus, Global Co-Head of iShares Fixed Income ETFs at BlackRock, highlighted that iBonds ETFs provide clarity into yield expectations and investment horizons. These ETFs have gained significant demand, with substantial inflows in recent years, showcasing their appeal to investors seeking efficient fixed income solutions. BlackRock’s expansion of this successful concept from the US to Europe further demonstrates their commitment to helping clients achieve their investment goals.

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