BlackRock turns active iShares ETF passive

Feb 15th, 2018 | By | Category: Fixed Income

BlackRock has transitioned its iShares Edge US Fixed Income Balanced Risk ETF (FIBR US) from an actively managed fund to an index-based fund. The move brings FIBR into alignment with the other iShares Edge ETFs, which are all index-based, smart-beta funds.

iShares turns an active ETF passive

iShares turns an active ETF passive

FIBR has adopted the Bloomberg Barclays US Fixed Income Balanced Risk Index as its underlying reference. The index is composed of 780 US dollar-denominated bonds and treasury futures and seeks to balance exposure to interest rate risk and credit risk.

The top weighting is Blackrock Cash CL Inst SL Agency which represents almost 15% of the exposure.

The index has an effective duration of 3.97 years. Its distribution yield, the annual yield an investor would receive if the most recent fund distribution and current fund price stayed the same, is 2.63%.

Since its launch in early 2015, the ETF has amassed almost $150 million in assets under management. Its management fee is 0.25%. 

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