BOND ETFs

iShares can help you rethink your fixed income portfolio.

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Multi story glass building

Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.


NOW IS NO TIME TO YIELD

The volatile markets of the past three years caused many investors to move money into a less volatile asset — cash. While cash has provided income temporarily during periods of uncertainty, holding too much can hurt portfolio returns by missing out on better opportunities.

Now, with sustained higher rates, bond yields have surged to attractive levels after a decade of lows, creating an appealing entry point to reallocate back into fixed income.1

Bond ETFs are among the powerful tools within the investor tool kit because they can offer the efficiency and precision needed to navigate this market environment (See Granular Product Selection below)*. Remarkably, 72% of wealth managers globally increased their use of bond ETFs in 2023.2

iSHARES IS THE INVESTMENT PARTNER THAT CAN HELP EVOLVE YOUR BOND PORTFOLIO

WHAT ROLE CAN BOND ETFs PLAY IN THE NEW MARKET LANDSCAPE?

Interest rates are now at some of the highest levels they have been in the last decade, offering investors many income opportunities to pursue. In an effort to build durable, resilient portfolios, investors are now able to use low-cost index exposures at the core, while employing active strategies to seek enhanced returns.

FIXED INCOME ASSETS

For the first time since 2007, more than 80% of fixed income sectors are yielding over 4%.3

HOW CAN iSHARES HELP?

By investing with iShares, you tap into BlackRock’s fixed income expertise, helping to shape and strengthen your entire portfolio.

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EVALUATE

Evaluate your existing fixed income allocation to help you understand what could drive risk and return in your portfolio.

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EVOLVE

Evolve your portfolio by identifying areas to enhance overall efficiency, or to incorporate new investment themes beyond your area of expertise, such as sustainable fixed income or China bonds.

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BUILD

Build efficient portfolios. The choice of instruments is key when moving from strategic portfolio construction to a holistic implementation approach. Investors should use all available tools in the box.

HOW CAN I GET MORE GRANULAR IN MY FIXED INCOME ALLOCATION TO CAPTURE PRECISE SOURCES OF RETURNS?

*With over 2,300 bond ETFs globally, investors today have more choices and tools than ever. Newer bond ETFs are slicing the fixed income marketplace into ever more granular exposures that can be blended into highly customisable portfolios.4

HOW CAN iSHARES HELP?

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CHOICE

iShares offers the broadest range of Europe-domiciled bond UCITS ETFs, with over 100 funds covering nearly all parts of the fixed income market.5

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ACCESSIBILITY

iShares bond ETFs bring strategies once reserved for large institutions to all investors, offering a flexible toolkit that meets a wide range of income, return, and risk objectives.

DID YOU KNOW YOU CAN LOCK IN YIELDS WITH iBONDS ETFs?

Holding bonds until maturity can help lock in current yields, but iBonds ETFs offer a more efficient alternative. These fixed maturity ETFs combine the benefits of individual bonds and traditional ETF trading. iBonds mature like bonds while offering low-cost, diversification and exchange-traded flexibility.

HOW CAN I REALIGN MY FIXED INCOME ALLOCATION TO INTEGRATE SUSTAINABLE AND TRANSITION FACTORS?

Bond ETFs are increasingly becoming a tool of choice for investors looking to improve their portfolios’ sustainability characteristics and fulfil carbon reduction targets.

The rules-based methodology inherent in indexed ETFs provides visibility and transparency. This, along with cost-effectiveness, liquidity and the overall efficiency of the ETF wrapper have contributed to growing adoption.

SUSTAINABLE BOND ETF AUM HAS SURGED 80+ TIMES

Global sustainable bond ETFs AUM has surged more than 80 times since 2015.6

HOW CAN iSHARES HELP?

Investors who plan to include sustainability and transition considerations in their portfolio may need a partner to help them rethink their fixed income allocations. Backed by BlackRock, iShares bond ETFs platform, can help investors navigate this change.

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CHOICE

iShares offers one of the widest range of sustainable and transition bond ETFs funds globally, spanning credit, government bonds & emerging market debt.7

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EXPERTISE

When investing with iShares, investors access a sustainable ETF platform backed by 30+ years of BlackRock's fixed income expertise.

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VISIBILITY AND TRANSPARENCY

Our iShares range tracks sustainable fixed income indices that are built with an objective, rules-based approach, giving investors clear visibility into the sustainable considerations used for bond inclusion.