 IBCE
is an iShares iBonds ETF that seeks to track the investment results of
the ICE BofAML 2023 (EX-FIN) 5-10 Year Corporate Index. This ETF
invests in a diversified portfolio of investment-grade corporate bonds
maturing in March 2023 and excludes financial sector issuers, with the
aim of providing income and preserving capital.
As of September
2021, the ETF had a net asset value of approximately $119 million and
an expense ratio of 0.10%. The fund's holdings are primarily in the
industrial and utility sectors, and the top ten holdings make up
approximately 27% of the portfolio.
One potential benefit of
IBCE is that it provides a target date maturity, allowing investors to
plan for potential cash flows or to use it as part of a laddered bond
strategy. Additionally, the exclusion of financial sector issuers can
provide additional diversification benefits for investors seeking to
limit their exposure to this sector.
It is important to note
that like all bond funds, IBCE carries some risks, including interest
rate risk, credit risk, and market risk. Changes in interest rates can
affect the value of the fund's holdings, while credit risk refers to
the possibility of issuers defaulting on their debt obligations.
Market risk refers to the risk of the bond market experiencing
volatility, which can impact the value of the ETF. Investors should
carefully consider their investment objectives, risk tolerance, and
consult with a financial professional before making any investment
decisions.
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