Whether your clients' goals are equity diversification, capital preservation or income, iShares bond ETFs can help you meet their needs.
iSHARES BOND ETFS: A LOW-COST FIXED INCOME SOLUTION
Video 01:44
Investing with Bond ETFs
iShares bond ETFs are a fixed income solution that strive to help portfolios diversify equity risk, preserve capital and seek income.
It is tough navigating bonds today.
What you pay in expenses really matters, since high fees can eat up a big chunk of your income.
So, how do you steer through the choppy waters? How can you pursue lower fees, higher income and still potentially generate competitive total returns?
Many investors have arrived at a simple solution. Just as they’ve used ETFs for stock investments to seek attractive returns and lower fees, they are taking the same approach with bonds.
In fact, bond ETFs are the fastest growing segment of the bond market.
We believe by 2030, bond ETFs will represent six trillion dollars in assets under management globally.
Like mutual funds, bond ETFs provide exposure to 100s of bonds in one easy trade. But, since they seek to track an index, they charge lower fees, freeing up more income and providing you with diversified bond exposure to seek attractive returns.
iShares is a market leader in bond ETFs, managing more bond ETF assets than anyone else and we pioneered the industry launching the first bond ETF in 2002. So, whether you are seeking bonds to diversify your stock portfolio or to pursue high income, there’s an ETF for you.
You can’t control the tides, but you can make sure your bond portfolio is prepared.
Consider using iShares bond ETFs to help steer through the waves.
Visit www.iShares.com to view a prospectus, which includes investment objectives, risks, fees, expenses and other information that you should read and consider carefully before investing. Investing involves risk, including possible loss of principal.
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THE BENEFITS OF BOND ETFs
Competitive performance
iShares bond ETFs have outperformed the majority of their peers over the last 10 years.1
Low cost
On average, iShares bond ETFs cost 78% less than active mutual funds.2
Liquidity
Bond ETFs trade thousands of times throughout the day on the exchange, while individual bonds may not trade daily.3
NAVIGATE MARKETS WITH BOND ETFS
Performance data represents past performance and does not guarantee future results. Investment return and principal value will fluctuate with market conditions and may be lower or higher when you sell your shares. Current performance may differ from the performance shown. For most recent month-end performance and standardized performance, click on the fund ticker above.
BUILD BOND LADDERS WITH iSHARES® iBONDS® ETFS
iBonds ETFs are diversified portfolios of individual bonds that mature in the same year in an ETF wrapper - giving you the look and feel of owning an individual bond without the headache. See how they can help scale your practice below.
Mature like a bond
Like individual bonds, iBonds ETFs have a specified maturity date. They can also be used to seek income and manage interest rate risk.
Trade like a stock
iBonds ETFs trade throughout the day on the exchange, so you do not have to trade in the over-the-counter market.
Diversify like a fund
Exposure to hundreds of bonds in a single fund, diversified across sectors, ratings, and revenue sources.
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1 Source: BlackRock calculation using fund performance rankings from Morningstar, as of 12/31/2024. Comparison universe is ETFs and mutual funds in the Morningstar category and uses total return. Overall figure is a weighted average of the percentage of funds that the iShares bond ETFs have outperformed in each Morningstar category, weighted based on the number of funds in the Morningstar category. The funds outperformed 46%, 55%, 45% and 56% of peers on a 1-, 3-, 5- and 10-year basis, respectively. Performance may be different for other time periods.
2 Source: Morningstar as of 12/31/2024. Comparison is between the Prospectus Net Expense Ratio for the average Fixed Income iShares ETF (0.19%) and the average Fixed Income Open-End Mutual Fund (0.85%) available in the U.S. ex-money market funds.
3 Source: TRACE and Markit iBoxx from 12/01/2021 to 12/31/2024.
Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses which may be obtained visiting www.iShares.com or www.blackrock.com. Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal.
Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments.
Non-investment-grade debt securities (high-yield/junk bonds) may be subject to greater market fluctuations, risk of default or loss of income and principal than higher-rated securities. There may be less information on the financial condition of municipal issuers than for public corporations. The market for municipal bonds may be less liquid than for taxable bonds. Some investors may be subject to federal or state income taxes or the Alternative Minimum Tax (AMT). Capital gains distributions, if any, are taxable.
Preferred stocks are not necessarily correlated with securities markets generally. Rising interest rates may cause the value of the Fund’s investments to decline significantly. Removal of stocks from the index due to maturity, redemption, call features or conversion may cause a decrease in the yield of the index and the Fund.
International investing involves risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. These risks often are heightened for investments in emerging/ developing markets or in concentrations of single countries.
Diversification and asset allocation may not protect against market risk or loss of principal.
The BlackRock Short Maturity Bond ETF will invest in privately issued securities that have not been registered under the Securities Act of 1933 and as a result are subject to legal restrictions on resale. Privately issued securities are not traded on established markets and may be illiquid, difficult to value and subject to wide fluctuations in value. Delay or difficulty in selling such securities may result in a loss to the BlackRock Short Maturity Bond ETF. The Fund may invest in asset-backed (“ABS”) and mortgage-backed securities (“MBS”) which are subject to credit, prepayment and extension risk, and react differently to changes in interest rates than other bonds. Small movements in interest rates may quickly reduce the value of certain ABS and MBS.
Shares of ETFs may be bought and sold throughout the day on the exchange through any brokerage account. Shares are not individually redeemable from the ETF, however, shares may be redeemed directly from an ETF by Authorized Participants, in very large creation/redemption units.
Transactions in shares of ETFs may result in brokerage commissions and will generate tax consequences. All regulated investment companies are obliged to distribute portfolio gains to shareholders.
There can be no assurance that an active trading market for shares of an ETF will develop or be maintained.
This material does not constitute any specific legal, tax or accounting advice. Please consult with qualified professionals for this type of advice.
The tool, and any data used by the tool, is provided on an "as-is" basis. BlackRock expressly disclaims all warranties, express or implied, statutory or otherwise with respect to the tool (and any data used by the tool and the results obtained from use of the tool) including, without limitation, all warranties or merchantability, fitness for a particular purpose or use, accuracy, completeness, originality and/or non-infringement. In no event shall BlackRock have any liability for any claims, damages, obligations, liabilities or losses relating to the tool including, without limitation, any liability for any direct, indirect, special, incidental, punitive and/or consequential damages (including loss of profits or principal).
This information should not be relied upon as research, investment advice, or a recommendation regarding any products, strategies, or any security in particular. This material is strictly for illustrative, educational, or informational purposes and is subject to change.
Prepared by BlackRock Investments, LLC,member FINRA.
© 2025 BlackRock, Inc or its affiliates. All Rights Reserved. BLACKROCK, iSHARES, iBONDS, LIFEPATH, ALADDIN and the iShares Core Graphic are trademarks of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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