Two iShares Bond ETFs to Swap Indices
Two iShares fixed income exchange traded funds will transition to new indices on Tuesday.
The iShares Core Short-Term U.S. Bond ETF (ISTB) will track the Barclays US 1-5yr Universal Index while the iShares Core Long-Term US Bond ETF (ILTB) . The index changes were announced in March.
“The changes are being implemented in order to expand the funds’ diversification,” said iShares in a statement.
ISTB holds “dollar-denominated government, government-related and investment-grade U.S. corporate bonds with remaining maturities between one and five years,” according to iShares.
The ETF, which debuted in October 2012 as part of the iShares core suite of ETFs, has $135.6 million in assets under management.
ISTB has a 30-day SEC yield of 0.78% and an effective duration of 2.64 years.
ILTB holds investment-grade government and corporate bonds with remaining maturities in excess of 10 years.
That ETF debuted in December 2009 and has $42.6 million in assets under management with an effective duration of 13.66 years and a 30-day SEC yield of 3.96%.
ETF Trends editorial team contributed to this post.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.
