Why? Because these ETFs offer a cost-effective combination of precision, liquidity, and transparency.
Bond ETFs Are Hard to Beat
Whether deploying cash or rebalancing your portfolio, bond ETFs offer several key advantages:
Efficiency and Liquidity. They let you buy and sell portfolios of thousands of bonds with a single trade, making them a powerful tool for managing fixed income exposure in a portfolio. And they often trade at a fraction of the cost of individual bonds.
Diversification and Customisation. With over 2300 bond ETFs on offer, you have more choices than ever.5 Whether you’re looking to invest in sovereign bonds, corporate bonds, or emerging market debt, there will be an ETF for you. You can build a broad portfolio with aggregate bond ETFs or customise your exposure across sectors, maturities, and credit ratings.
Innovation. Bond ETFs are constantly evolving. Take iBonds ETFs, for example. These were the world’s first fixed maturity ETFs. They trade like a stock, diversify like a fund, and mature like an individual bond. They are a unique way to manage risk and return in your portfolio.
Advanced Portfolio Construction. Newer bond ETFs are also slicing the fixed income market more precisely, allowing for highly customisable portfolios. Hitherto institutional-only strategies are now accessible to everyone, enabling many more investors to build portfolios capable of weathering various market conditions.
Sources
1 BlackRock Global Business Intelligence, as of 31 Dec 2023
2 Broadridge for Mutual Fund data, GBI iShares for ETFs, as of 31 Jan 2024, and Hedge Fund Research (HFR) for Global Hedge Funds as of 31 Dec 2023. Closed ended funds excluded.
3 Simfund for US money market funds; Broadridge for non-US money market funds, both as of 31 Dec 2023
4 From proprietary research. BlackRock projections as of 31 March 2024. Subject to change. The figures are for illustrative purposes only and there is no guarantee the projections will come to pass
5 BlackRock Global Business Intelligence, total number of bond ETFs globally is 2,392, as of 31 March 2024
Risk Warnings
Capital at risk.
Marketing material.
The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.
Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.
Changes in the rates of exchange between currencies may cause the value of investments to diminish or increase. Fluctuation may be particularly marked in the case of a higher volatility fund and the value of an investment may fall suddenly and substantially. Levels and basis of taxation may change from time to time and depend on personal individual circumstances.
Regulatory Information
