BlackRock expands iBonds UCITS ETF range

BlackRock today launches another five iBonds ETFs, extending the range of fixed maturity UCITS ETFs to nine funds, now with maturities ranging from 2025 to 2028. iBonds are ETFs that behave similarly to bonds and mature on a defined date. The funds hold a diversified set of bonds with similar maturity dates. After a fixed period, the ETFs will mature and return a final payout to investors. The funds provide cost-effective access to the bond market, with the diversification, transparency, and liquidity benefits of ETFs.

These five new iBonds ETFs provide exposure to investment grade (IG) corporate bonds across various countries and sectors in each ETF, and US treasuries. The ETFs offer two defined maturity dates respectively, in December 2025 and 2027, across $ and € in IG, giving investors flexibility across currencies, maturities, and countries. The UCITS range now includes maturity dates in December 2025, 2026, 2027, and 2028 in IG corporate bonds. Furthermore, this launch broadens options for investors by adding exposure to US government debt through the iShares iBonds Dec 2025 Term $ Treasury UCITS ETF.

iBonds ETFs can be used by investors to complement existing investment vehicles, in an easily understood structure, which aims to achieve a return through a combination of capital growth and the income on the fund’s assets which is derived from the underlying bonds’ coupon payments. The ETF suite can also be used to add scale to bond portfolios offered by investment advisors and enhance operational simplicity. Each iBonds ETF holds a diversified basket of bonds and can replace a large number of holdings, minimizing the need to source and manage individual bonds. iBonds are available through wealth management platforms and brokerages across Europe. 

With the launch of these five further funds in the UCITS iBonds range, investors in selected European countries will now be able to create scalable, diversified bond ladders using the fixed maturity ETFs. By buying bonds with differing maturity dates, investors can stagger final payouts, and reinvest into funds with subsequent consecutive maturities – creating bond ladders. The unique structure of iBonds ETFs makes it easier to create bond ladders with only a few ETFs, rather than trading numerous bonds. Investors can use them to structure their investments to meet shorter-term goals and capture defined yields over set investment periods.

“iBonds ETFs are designed to mature like a bond, trade like a stock, and diversify like a fund, all in a cost-efficient and transparent ETF wrapper. As the pool of iBonds UCITS ETFs grows, investors will be able to enjoy additional versatility, enabling them to curate portfolios to meet their needs”.

Brett Pybus, Global Co-Head of iShares Fixed Income ETFs at BlackRock. 

BlackRock launched the first iBonds ETF in the US in 2010. Recently, we have seen significant demand for these funds, with inflows of $8.1 Billion over 2022, and $5.2 Billion over 2023, per end of July. BlackRock is now bringing this innovation to Europe via a UCITS ETF wrapper, helping clients achieve their investment goals.