iShares iBonds Dec 2032 Term $ Corp UCITS ETF (Acc)

Issuer: iShares

Asset Class: Fixed Income

TER: 12bps

Trading Currency: USD

Pays Income: False

Listing Date: 07 Nov 2024

Ticker: ID32

ISIN: IE0007YBWBE5

This investment vehicle offers a unique approach to fixed-income investing by combining the features of a traditional bond with the diversification and liquidity of an exchange-traded fund. It holds a portfolio of investment-grade, US dollar-denominated corporate bonds that are scheduled to mature in 2032. This defined-maturity structure provides investors with a clear investment horizon, similar to holding an individual bond to term. At the end of its term in December 2032, the fund will be terminated, and the proceeds will be distributed to the shareholders, providing a predictable return of principal, subject to issuer credit risk. This structure helps mitigate interest rate risk for investors who hold until maturity, as the fund's sensitivity to rate changes decreases as it approaches its termination date.

The fund is designed for investors seeking a specific yield over a known period, making it an effective tool for financial planning, such as saving for retirement or a future liability. By holding a diversified basket of corporate bonds, it significantly reduces the concentration risk associated with investing in a single security. Furthermore, the portfolio incorporates an ESG screening process, excluding companies involved in controversial sectors like weapons, tobacco, and thermal coal, aligning the investment with sustainability-conscious principles. This product is an innovative solution for building a bond ladder, allowing investors to create a predictable stream of maturing assets with the convenience and professional management of an ETF.