iShares 1-5 Year Investment Grade Corporate Bond ETF (IGSB)

Overview

The company manages a fund focused on investing in investment-grade corporate bonds that are both issued by U.S. and non-U.S. entities but are denominated in U.S. dollars and publicly issued in the U.S. domestic market. The criteria for the bonds included in the fund's portfolio are very specific: they must have a remaining maturity of at least one year but less than five years. The strategic approach of the fund is to mimic the performance of a particular index that tracks these types of bonds, ensuring that a significant portion of its assets, at least 80%, is invested directly in the securities that comprise the benchmark index. Additionally, to maintain a high level of fidelity to the underlying index's performance, the fund commits to allocating at least 90% of its assets in fixed income securities similar to those found in the index, as determined by BFA's (presumably BlackRock Fund Advisors) analysis to be conducive for the fund's objectives.

Products and Services

• Investment in Investment-Grade Corporate Bonds

  The fund focuses on investing in corporate bonds that have been rated as investment-grade, signifying a lower risk of default. These bonds are issued by both U.S. and non-U.S. companies, but are required to be U.S. dollar-denominated and publicly issued in the U.S. market, providing a mix of security and accessibility for investors looking for reliable income streams with minimal risk.

• Index Tracking Investment Strategy

  One of the key strategies of the fund is to track the performance of a specific index that measures the performance of the described corporate bonds. By investing at least 80% of its assets directly in the securities that make up the index, the fund aims to closely replicate the index's returns. This approach provides investors with a transparent and predictable investment mechanism that aligns with the performance of the broader bond market within its defined maturity and credit quality constraints.

• High Allocation to Fixed Income Securities

  In addition to the specific securities that comprise the index, the fund dedicates a significant portion of its portfolio, at least 90%, to other fixed income securities that fit the criteria of the underlying index as interpreted by BFA. This high allocation to fixed income securities is a testament to the fund's commitment to maintaining stability and pursuing a conservative investment approach that aligns with the fund's goal of tracking the index while seeking to minimize risk and volatility.