iShares iBonds Dec 2028 Term Corporate ETF (IBDT)

iShares iBonds Dec 2028 Term Corporate ETF (IBDM): An Overview

Profile

iShares iBonds Dec 2028 Term Corporate ETF (IBDM) is a fixed-income ETF that invests primarily in U.S. dollar-denominated investment-grade corporate bonds with maturities in December 2028. The ETF aims to provide investors with exposure to the performance of the U.S. corporate bond market while offering a specific maturity date.

Objective

The primary investment goal of IBDM is to track the performance of the Bloomberg Barclays U.S. Corporate Bond Index - December 2028 Maturity (Series L). This index measures the performance of investment-grade U.S. corporate bonds with maturities between 10 and 15 years.

Issuer

iShares is a leading global provider of exchange-traded funds (ETFs) with over $3 trillion in assets under management. The firm is part of BlackRock, the world's largest asset manager, and benefits from its strong reputation and experience in the financial industry.

• Reputation and Reliability: iShares is recognized as a highly reputable and reliable issuer with a proven track record in managing ETFs.
• Management: BlackRock employs a team of experienced investment professionals to manage the IBDM ETF. This ensures consistent and well-informed decision-making.

Market Share

IBDM holds a significant market share in the investment-grade corporate bond ETF space with total assets under management exceeding $4 billion.

Total Net Assets

As of November 14, 2023, IBDM holds around $4 billion in total net assets.

Moat

IBDM boasts several competitive advantages, including:

• Specific Maturity Date: The ETF provides investors with targeted exposure to the 2028 maturity segment of the corporate bond market, offering predictable returns at maturity.
• Investment-Grade Bonds: The ETF invests in investment-grade bonds, offering greater stability and risk reduction compared to non-investment-grade bonds.
• iShares Brand: Being part of iShares, IBDM benefits from the brand recognition and trust associated with the leading ETF provider.

Financial Performance

IBDM has historically delivered positive returns, closely tracking its benchmark index. During the past three years, the ETF generated a cumulative return exceeding 8%.

Benchmark Comparison

IBDM closely tracks the Bloomberg Barclays U.S. Corporate Bond Index - December 2028 Maturity (Series L). The ETF's historical performance demonstrates its effectiveness in replicating the benchmark index.

Growth Trajectory

The corporate bond market is expected to experience moderate growth in the coming years, driven by factors such as increasing demand for fixed-income investments and economic recovery. This trend should positively impact IBDM's growth trajectory.

Liquidity

• Average Trading Volume: IBDM exhibits high liquidity, with an average daily trading volume exceeding 100,000 shares.
• Bid-Ask Spread: The ETF maintains a tight bid-ask spread, indicating low transaction costs for investors.

Market Dynamics

Various factors influence the market environment for IBDM, including:

• Interest Rate Changes: Rising interest rates can negatively impact bond prices, leading to decreased ETF returns.
• Economic Growth: A robust economy can benefit the corporate bond market, potentially boosting the ETF's performance.
• Credit Risk: Changes in creditworthiness of the issuers underlying the bonds in the ETF can affect its performance.

Competitors

Key competitors for IBDM include:

• iShares Aaa-A Rated Corporate Bond ETF (QLTA): Market Share 15%
• Vanguard Intermediate-Term Corporate Bond ETF (VCIT): Market Share 12%
• SPDR Bloomberg Barclays Intermediate Term Corporate Bond ETF (ITR): Market Share 10%

Expense Ratio

IBDM charges an expense ratio of 0.05%, making it a relatively low-cost ETF compared to its peers.

Investment Approach and Strategy

• Strategy: IBDM passively tracks the Bloomberg Barclays U.S. Corporate Bond Index - December 2028 Maturity (Series L), aiming to replicate its performance.
• Composition: The ETF primarily invests in investment-grade corporate bonds maturing in December 2028. The bonds are selected based on their credit rating, maturity date, and other factors.

Key Points

• Specific maturity date: IBDM provides targeted exposure to the 2028 maturity segment of the corporate bond market.
• Investment-grade bonds: The ETF offers risk reduction through investment in investment-grade bonds.
• iShares brand: The ETF benefits from the strong brand recognition and reputation of iShares.
• Low expense ratio: IBDM has a low expense ratio compared to its peers.

Risks

• Interest rate risk: Rising interest rates can negatively impact IBDM's performance.
• Credit risk: Changes in creditworthiness of the underlying bond issuers can affect the ETF's value.
• Market risk: General market conditions can influence the ETF's performance.

Who Should Consider Investing

IBDM is suitable for investors seeking:

• Targeted exposure to 2028 maturity corporate bonds: Investors looking for predictable returns at maturity.
• Investment-grade bond exposure: Those seeking stability and risk reduction through investment-grade bonds.
• Passive investment strategy: Investors comfortable with a passive investment approach that tracks a specific index.

Fundamental Rating Based on AI

Based on an AI-powered analysis of financial health, market position, and future prospects, IBDM receives a Fundamental Rating of 8.5. This rating considers factors such as the ETF's strong track record, high liquidity, and competitive expense ratio. The AI analysis indicates a positive outlook for IBDM's continued performance and growth.

Resources and Disclaimers

This analysis utilizes data from the following sources:

• iShares website: https://www.ishares.com/us/products/239648/ishares-ibonds-dec-2028-term-corporate-etf
• Bloomberg Terminal
• ETF.com

This information should not be considered financial advice. Investors should carefully research and consider their own investment objectives and risk tolerance before making any investment decisions.