BlackRock has expanded its suite of ‘iBonds’ ETFs in Europe, offering investors exposure to portfolios of investment-grade corporate bonds that mature in a specific year.

Brett Pybus, Global Co-Head of iShares Fixed Income ETFs at BlackRock.

Unlike most fixed-income ETFs, which rebalance their holdings to maintain a specific maturity profile, BlackRock’s iBonds ETFs hold their underlying bonds until maturity, at which point the funds are liquidated. This approach enables the funds to deliver regular income and a cash distribution at termination, effectively replicating the behavior of individual bonds within the ETF structure.

The iBonds ETFs combine the characteristics of bonds, stocks, and funds: they mature like bonds, trade like stocks, and provide diversification like traditional ETFs. This design simplifies bond laddering by allowing investors to construct a diversified portfolio of target maturities using just a handful of ETFs, rather than sourcing and managing numerous individual bonds. Additionally, the ETF structure enhances liquidity compared to individual bonds.

Each new ETF has an expense ratio of 0.12% and is available in both accumulating and distributing share classes, providing flexibility for different investor preferences. The USD iBonds ETFs are listed on the London Stock Exchange in US dollars, while the EUR iBonds ETFs are listed on Xetra in euros.

Beyond investment-grade corporate credit, BlackRock’s iBonds suite also includes funds targeting Italian government bonds and US Treasuries, with the latter priced slightly lower at 0.10%.

The iBonds ETF suite has gained significant traction, currently managing over $6.3 billion in assets in Europe. Year-to-date through October, the suite has attracted $4.2 billion in net inflows, accounting for 8% of all fixed-income ETF flows in Europe during this period. These figures underscore the growing appeal of the target maturity ETF approach among investors seeking predictable cash flows and simplified portfolio construction.

Brett Pybus, Global Co-Head of iShares Fixed Income ETFs at BlackRock, commented: “As the range of iBonds UCITS ETFs grows, investors will be able to benefit from additional versatility to meet specific portfolio needs and expanding use-cases such as bond laddering. These new iBonds ETFs provide additional choice to clients who aim to lock in yields targeting a specific point on the curve coupled with the operational efficiency and convenience of the ETF wrapper.”

The new iBonds ETFs are outlined below:

iShares iBonds Dec 2031 Term $ Corp UCITS ETF
iShares iBonds Dec 2032 Term $ Corp UCITS ETF
iShares iBonds Dec 2033 Term $ Corp UCITS ETF
iShares iBonds Dec 2034 Term $ Corp UCITS ETF

iShares iBonds Dec 2031 Term € Corp UCITS ETF
iShares iBonds Dec 2032 Term € Corp UCITS ETF
iShares iBonds Dec 2033 Term € Corp UCITS ETF
iShares iBonds Dec 2034 Term € Corp UCITS ETF