iShares iBonds 1-5 Year TIPS Ladder ETF (LDRI)

Overview

The investment aims to replicate the performance, before fees and expenses, of the NASDAQ LadderRite® 0-5 Year USD Corporate Bond Index. This fund primarily focuses on investing in a diverse range of U.S. and foreign investment-grade corporate bonds. These bonds form the underlying index, which is designed to reflect the potential returns of a theoretical portfolio consisting of fixed-income securities with remaining maturities of five years or less. The strategy is to maintain at least 80% of its total assets in the bonds that make up the underlying index, ensuring alignment with its investment objective and providing investors with a targeted exposure to the short-term corporate bond market.

Products and Services

• Investment Grade Corporate Bonds

  These are bonds issued by corporations with a high credit quality, deemed to carry lower risk compared to bonds issued by companies with lower credit ratings. The fund invests primarily in U.S. and foreign investment grade corporate bonds, aiming to provide investors with a mix of income and stability within the fixed-income segment of their investment portfolio.

• Theoretical Portfolio Management

  The underlying NASDAQ LadderRite® 0-5 Year USD Corporate Bond Index reflects potential returns of a theoretical portfolio. This portfolio strategy involves selecting fixed income securities that have a remaining maturity of five years or less, tailored to investors seeking less exposure to interest rate fluctuations and shorter investment horizons. The fund’s management approach revolves around replicating the performance of this specific index, aligning the fund’s investments with the calculated yields and durations of the selected bonds within the targeted maturity spectrum.