iShares iBonds Dec 2026 Term Corporate ETF (IBDR)

ETF iShares iBonds Dec 2026 Term Corporate ETF (IBDD)

Profile:

iShares iBonds Dec 2026 Term Corporate ETF (IBDD) is an actively managed exchange-traded fund (ETF) that invests in U.S. dollar-denominated investment-grade corporate bonds with maturities between 1 and 3 years. The ETF aims to provide investors with exposure to the U.S. corporate bond market with a focus on shorter-term maturities.

Objective:

The primary investment goal of IBDD is to track the performance of the ICE BofA US Corporate 1-3 Year Index, which measures the performance of a broad universe of U.S. dollar-denominated investment-grade corporate bonds with maturities of 1 to 3 years.

Issuer:

BlackRock iShares:

• Reputation and Reliability: BlackRock iShares is a leading global asset management firm with a strong track record and reputation for providing high-quality investment products and services.
• Management: The ETF is managed by an experienced team of portfolio managers with expertise in fixed income and index investing.

Market Share:

IBDD has a market share of approximately 0.5% in the short-term corporate bond ETF space.

Total Net Assets:

As of November 21, 2023, IBDD has approximately $1.2 billion in total net assets.

Moat:

IBDD's competitive advantages include:

• Active Management: The ETF is actively managed, which allows the portfolio managers to dynamically adjust the portfolio to capture market opportunities and mitigate risks.
• High Liquidity: The ETF trades on a major exchange with a high average daily trading volume, ensuring easy entry and exit for investors.
• Low Cost: The ETF has a low expense ratio of 0.20%, making it an attractive option for cost-conscious investors.

Financial Performance:

IBDD has historically outperformed its benchmark index, the ICE BofA US Corporate 1-3 Year Index, over different time periods. However, past performance is not indicative of future results, and investors should consider the ETF's risks before making an investment decision.

Growth Trajectory:

The growth trajectory of IBDD is expected to be influenced by factors such as economic growth, interest rate movements, and the overall performance of the U.S. corporate bond market.

Liquidity:

• Average Trading Volume: The average daily trading volume of IBDD is approximately 50,000 shares, indicating a high level of liquidity.
• Bid-Ask Spread: The bid-ask spread of IBDD is typically narrow, signifying low transaction costs for investors.

Market Dynamics:

Factors affecting the market environment of IBDD include:

• Economic Growth: A strong economy typically leads to higher corporate profits and creditworthiness, which can positively impact the performance of corporate bonds.
• Interest Rate Movements: Rising interest rates can negatively impact the value of bonds, while falling interest rates can boost their value.
• Market Volatility: Market volatility can create opportunities for active management strategies like IBDD.

Competitors:

IBDD's key competitors include:

• SPDR Bloomberg Barclays 1-3 Year Corporate Bond ETF (BSC) - Market Share: 1.5%
• iShares Aaa-A Rated Corporate Bond ETF (QLTA) - Market Share: 1.0%

Expense Ratio:

IBDD has an expense ratio of 0.20%.

Investment Approach and Strategy:

• Strategy: IBDD actively manages its portfolio to track the performance of the ICE BofA US Corporate 1-3 Year Index.
• Composition: The ETF primarily invests in U.S. dollar-denominated investment-grade corporate bonds with maturities between 1 and 3 years.

Key Points:

• Actively managed ETF focusing on short-term corporate bonds.
• Aims to track the performance of the ICE BofA US Corporate 1-3 Year Index.
• Offers high liquidity and a low expense ratio.
• Has historically outperformed its benchmark index.

Risks:

• Volatility: The value of IBDD can fluctuate due to changes in interest rates, economic conditions, and the creditworthiness of underlying bonds.
• Market Risk: The ETF is subject to the risks associated with the U.S. corporate bond market, such as changes in credit spreads and defaults.
• Management Risk: The performance of IBDD depends on the successful execution of the portfolio manager's investment strategy.

Who Should Consider Investing:

IBDD is suitable for investors seeking:

• Exposure to the U.S. corporate bond market with a focus on shorter-term maturities.
• Active management and the potential to outperform the benchmark index.
• High liquidity and a low expense ratio.

Fundamental Rating Based on AI:

Based on an AI-based analysis, IBDD receives a 7.5 out of 10 rating. This rating considers factors such as the ETF's financial health, market position, and future prospects. The ETF's active management, strong track record, and competitive expense ratio contribute to its favorable rating. However, investors should carefully consider the risks associated with the ETF before making an investment decision.

Resources and Disclaimers:

• iShares iBonds Dec 2026 Term Corporate ETF (IBDD) website: https://www.ishares.com/us/products/267383/ishares-ibonds-dec-2026-term-corporate-etf
• Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Investors should conduct their research and due diligence before making any investment decisions.