iShares, the exchange-traded fund (ETF) business of BlackRock, is planning to launch three interest-rate-hedged ETFs for investors worried about rising interest rates.
BlackRock recently filed with the Securities and Exchange Commission (SEC) for three actively managed bond ETFs.
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The proposed set of products from iShares include an interest-rate-hedged zero- to five-year high-yield bond ETF, an interest-rate-hedged 10-plus year credit bond ETF, and an interest-rate-hedged emerging- markets bond ETF and.
According to a filing, the iShares Interest Rate Hedged Emerging Markets Bond ETF will try to mitigate interest rate risk of a portfolio composed of US dollar-denominated, emerging market bonds. The fund will include bonds from the iShares JP Morgan USD Emerging Markets Bond ETF but hedge against rate risk by going short US Treasuries.
The iShares Interest Rate Hedged 10+ Year Credit Bond ETF will try to mitigate the interest rate risk of a portfolio composed of investment-grade US corporate bonds and US dollar-denominated bonds, including those of non-US corporations and governments, with remaining maturities greater than ten years.
The iShares Interest Rate Hedged 0-5 Year High Yield Bond ETF will try to mitigate the interest rate risk of a portfolio composed of U.S. dollar-denominated, high yield corporate bonds with remaining maturities of less than five years. The fund will hold bonds from the iShares 0-5 Year High Yield Corporate Bond ETF but hedges against rate risk through short positions in US Treasuries.
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By GlobalData
