iShares iBonds Dec 2028 Term $ Corp UCITS ETF GBP Hedged (Dist)

Issuer: iShares

Asset Class: Fixed Income

TER: 15bps

Trading Currency: GBP

Pays Income: False

Listing Date: 23 Feb 2024

Ticker: D28G

ISIN: IE000VVQWC23

This financial instrument offers a modern approach to bond investing, functioning much like an individual bond but with the diversification benefits of a fund. It holds a portfolio of investment-grade corporate bonds that are all scheduled to mature in 2028. This target-maturity structure provides investors with a clear and predictable investment horizon, helping to mitigate the uncertainty of interest rate fluctuations over the life of the investment. As the underlying bonds mature, the fund is designed to terminate and distribute its final net assets to the shareholders, making it an effective tool for planning specific, date-driven financial goals.

The portfolio is globally diversified across various sectors and issuers primarily within developed markets, which significantly reduces the credit risk associated with holding a single corporate bond. This particular share class is also currency-hedged, aiming to minimize the impact of exchange rate volatility between the US dollar-denominated assets and the investor's home currency. This feature adds a layer of predictability for those seeking to protect their capital from adverse currency movements.

Furthermore, the investment strategy incorporates an Environmental, Social, and Governance (ESG) screen. The underlying index excludes companies involved in certain controversial industries, such as thermal coal, oil sands, and controversial weapons. This aligns the investment with the principles of socially responsible investing, allowing individuals to pursue their financial objectives while adhering to their sustainability values. It represents a comprehensive solution for those seeking predictable income, capital preservation over a set timeframe, and a responsible investment mandate.