iShares AAA - A Rated Corporate Bond ETF (0BYY)

Overview

The fund is designed to mirror the performance of a specific segment of the U.S. corporate bond market, with a commitment to investing a significant majority of its assets into the securities that compose its underlying index. This strategy is aimed at tracking the performance of the Aaa to A rated portion of fixed-rate, U.S. dollar-denominated, taxable corporate bonds. By focusing on high-quality investment-grade bonds, the fund aims to provide investors with a balance of income and stability, reflecting the performance of the narrower, higher-rated subset of the broader Bloomberg U.S. Corporate Index.

Products and Services

• Investment in Component Securities

  The fund prioritizes investing at least 80% of its assets in the component securities that make up the underlying index. This focus ensures that the fund's portfolio closely mirrors the targeted segment of the bond market, providing investors with a clear expectation of the fund's investment strategy and the quality of bonds it holds.

• Fixed Income Securities Investment

  In adherence to its strategy of tracking the underlying index, the fund commits at least 90% of its assets to fixed income securities that are represented within the index. Specifically, these securities are within the Aaa - A rated range, underlining the fund’s commitment to maintaining a high credit quality in its investments. BlackRock Fund Advisors (BFA) leverages its expertise to select these securities in a manner that they believe will most effectively help the fund to emulate the underlying index’s performance.