IBCD ETF — Holdings & Analysis

For informational purposes only. Not financial advice.

Quick Answer

The iShares iBonds Mar 2020 Term Corporate ex-Financials ETF (IBCD) is designed to track the investment results of the Bloomberg Barclays 2020 Maturity High Quality Corporate Index, focusing on U.S.

dollar-denominated, investment-grade corporate bonds, excluding financials, maturing before April 1, 2020. IBCD offers a targeted maturity date, which can be attractive for investors seeking to align bond investments with specific financial goals. The ETF's strategy provides exposure to a diversified portfolio of corporate bonds while excluding the financial sector.

iShares iBonds Mar 2020 Term Corporate ex-Financials ETF (IBCD) ETF — Price, Holdings & Analysis

The iShares iBonds Mar 2020 Term Corporate ex-Financials ETF (IBCD) is designed to track the investment results of the Bloomberg Barclays 2020 Maturity High Quality Corporate Index, focusing on U.S. dollar-denominated, investment-grade corporate bonds, excluding financials, maturing before April 1, 2020. IBCD offers a targeted maturity date, which can be attractive for investors seeking to align bond investments with specific financial goals. The ETF's strategy provides exposure to a diversified portfolio of corporate bonds while excluding the financial sector.

ETF Overview

The investment seeks to track the investment results of the Bloomberg Barclays 2020 Maturity High Quality Corporate Index which is composed of U.S. dollar-denominated, investment-grade corporate bonds, excluding financials, maturing after March 31, 2019 and before April 1, 2020. The fund generally will invest at least 90% of its assets in the component securities of the underlying index, and may invest up to 10% of its assets in certain futures, options and swap contracts, cash and cash equivalents, as well as in securities not included in the underlying index.

IBCD aims to replicate the performance of the Bloomberg Barclays 2020 Maturity High Quality Corporate Index, which consists of U.S. dollar-denominated, investment-grade corporate bonds, excluding those from the financial sector, maturing after March 31, 2019, and before April 1, 2020. The fund invests at least 90% of its assets in the component securities of the underlying index. By excluding financials, IBCD provides a specific sector focus within the corporate bond market. This targeted approach allows investors to fine-tune their fixed-income exposure based on maturity and sector preferences. The ETF may also invest up to 10% of its assets in futures, options, swap contracts, cash, cash equivalents, and securities not included in the underlying index, providing some flexibility in managing the portfolio. IBCD is designed for investors seeking a defined maturity date and exposure to investment-grade corporate bonds outside the financial sector.

Risk Metrics

IBCD carries a relatively low beta of 0.08 (3Y), indicating lower volatility compared to the broader market. However, the exclusion of the financial sector introduces a degree of concentration risk, as the portfolio's performance is more dependent on the non-financial corporate bond market. Investors should be aware of the potential impact of interest rate changes and credit risk associated with corporate bonds. While the fund focuses on investment-grade bonds, there is still a risk of default or downgrade. The fund's targeted maturity date also means that its composition will change over time as bonds mature, potentially affecting its risk profile. Past performance does not guarantee future results.

Dividend Yield

1.95%

iShares Russell 2000 ETF (IWM) — 0.19% expense ratio
ARK Innovation ETF (ARKK) — 0.75% expense ratio
State Street Technology Select Sector SPDR ETF (XLK) — 0.08% expense ratio
Invesco QQQ Trust, Series 1 (QQQ) — 0.18% expense ratio
iShares MSCI Emerging Markets ETF (EEM) — 0.72% expense ratio
iShares MSCI EAFE ETF (EFA) — 0.32% expense ratio
State Street Energy Select Sector SPDR ETF (XLE) — 0.08% expense ratio
State Street SPDR S&P 500 ETF (SPY) — 0.09% expense ratio

Risk Metrics

Beta: 0.08

Questions & Answers

What is IBCD and what does it track?

The iShares iBonds Mar 2020 Term Corporate ex-Financials ETF (IBCD) is an exchange-traded fund designed to track the investment results of the Bloomberg Barclays 2020 Maturity High Quality Corporate Index. This index is composed of U.S.

dollar-denominated, investment-grade corporate bonds, specifically excluding those issued by financial institutions.

Is IBCD a good long-term investment?

IBCD's suitability as a long-term investment depends on an investor's specific goals and risk tolerance. Given its targeted maturity date of March 2020, IBCD is not designed as a long-term investment vehicle.

The fund's strategy focuses on holding bonds that mature within a specific timeframe, and as those bonds mature, the fund's composition will change.

How does IBCD compare to similar ETFs?

However, IBCD's unique focus on investment-grade corporate bonds, excluding financials, maturing in 2020 differentiates it from broader corporate bond ETFs. When comparing ETFs, factors such as expense ratios, AUM, tracking error, and investment strategy may be worth researching.

ETFs with similar maturity dates and credit quality may be suitable alternatives, but it's important to assess their specific sector exposures and risk profiles.

Does IBCD pay dividends?

Yes, IBCD has a dividend yield of 1.95%. This means that investors in IBCD receive income payments based on the fund's underlying holdings. The dividend yield represents the annual dividend income as a percentage of the fund's share price.

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

Data provided for informational purposes only.

Written by machine, not reviewed page by page. Editorial oversight is systemic: the rules and the sources are checked, individual pages are not.