Invest with Fixed Income ETFs
FIXED INCOME

IT’S TIME TO RETHINK YOUR FIXED INCOME WITH BOND ETFS

Investors are increasingly turning to bond ETFs for more precise fixed income exposures that allow investors to customise portfolios, hedge risks, and capture opportunities.
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EXPECT 2023 TO LOOK BRIGHTER FOR FIXED INCOME MARKETS

The global macroeconomic backdrop is looking more favourable for allocating to fixed income. Inflation pressures are now showing early signs of easing, economic growth is slowing in response to higher interest rates, and central banks are stepping down the pace of their rate hikes.

APPROACH FIXED INCOME DIFFERENTLY

INTRODUCING THE BLACKROCK BOND PYRAMID

Fixed income plays an important part in all portfolios, but its role changes depending on the investor’s objective. Importantly no one bond fund can do it all. Consider first what role each fund plays, and then optimise your bond mix based on your larger asset allocation.

Your overall asset allocation determines the mix of funds you should hold in your bond pyramid. The more aggressive the overall portfolio gets, the more conservative the bonds may need to be.

BlacRock Bond Pyramid
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SO WHY BOND ETFS?

With experience showing that asset allocation drives most of the portfolio risk and return, investors are increasingly using ETFs as building blocks in asset allocation, offering investors an efficient, liquid, and diversified access to global and local fixed income markets.

WHY iSHARES BOND ETFS?

Transparency

Transparency

Full visibility on list of funds included in each ETF, coupled with full transparency of cost.

Quality

Quality

Bond ETFs are built for these times as they are carefully crafted to be used as efficient, diversified building blocks which provide greater transparency over portfolio risks.

Cost efficiency

Cost efficiency

Bond ETFs are cost-efficient, generally due to lower management charges compared to active managed funds.

FOCUS ON BETTER PORTFOLIO OUTCOMES

INDEX YOUR BONDS

Forget the 'active versus passive' debate – all investment decisions are active ones. Investors are recognising the advantages of blending bond ETFs with actively managed strategies to achieve better portfolio outcomes.

By using all the 'tools in the toolbox', investors can focus on the role of fixed income in their portfolios and their intended outcomes and goals.

Bond ETFs are carefully crafted to offer efficient, cost effective, diversified building blocks which provide greater transparency and clarity of portfolio risks allowing investors to build portfolios more tailored to their objectives.

OUR iSHARES FIXED INCOME ETF RANGE

GENERATE INCOME

Potential to seek a higher level of income with investment grade corporate bonds, high yield bonds or emerging market debt.

Performance

Net Asset Value
AUD 91.76

Sustainability

MSCI ESG Fund Rating (AAA-CCC)
A
MSCI ESG Quality Score (0-10)
6.80
MSCI Weighted Average Carbon Intensity (Tons CO2E/$M SALES)
205.53
MSCI Weighted Average Carbon Intensity % Coverage
93.92%

Performance

Net Asset Value
AUD 93.70
YTD Nav Return
0.17%

Sustainability

MSCI ESG Fund Rating (AAA-CCC)
AA
MSCI ESG Quality Score (0-10)
7.24
MSCI Weighted Average Carbon Intensity (Tons CO2E/$M SALES)
103.85
MSCI Weighted Average Carbon Intensity % Coverage
83.69%

Performance

Net Asset Value
AUD 92.78

Sustainability

MSCI ESG Fund Rating (AAA-CCC)
A
MSCI ESG Quality Score (0-10)
5.82
MSCI Weighted Average Carbon Intensity (Tons CO2E/$M SALES)
152.50
MSCI Weighted Average Carbon Intensity % Coverage
85.45%

Performance

Net Asset Value
AUD 75.00

Sustainability

MSCI ESG Fund Rating (AAA-CCC)
BB
MSCI ESG Quality Score (0-10)
3.94
MSCI Weighted Average Carbon Intensity (Tons CO2E/$M SALES)
990.03
MSCI Weighted Average Carbon Intensity % Coverage
10.52%
PRESERVE CAPITAL

Giving your cash more earning potential.

Performance

Net Asset Value
AUD 100.60
YTD Nav Return
0.64%

Sustainability

MSCI ESG Fund Rating (AAA-CCC)
AA
MSCI ESG Quality Score (0-10)
7.79
MSCI Weighted Average Carbon Intensity (Tons CO2E/$M SALES)
3.82
MSCI Weighted Average Carbon Intensity % Coverage
71.69%

Performance

Net Asset Value
AUD 100.65
YTD Nav Return
0.65%

Sustainability

MSCI ESG Fund Rating (AAA-CCC)
AA
MSCI ESG Quality Score (0-10)
7.57
MSCI Weighted Average Carbon Intensity (Tons CO2E/$M SALES)
7.51
MSCI Weighted Average Carbon Intensity % Coverage
83.63%

Performance

Net Asset Value
AUD 98.85
YTD Nav Return
0.66%

Sustainability

MSCI ESG Fund Rating (AAA-CCC)
AA
MSCI ESG Quality Score (0-10)
7.55
MSCI Weighted Average Carbon Intensity (Tons CO2E/$M SALES)
70.24
MSCI Weighted Average Carbon Intensity % Coverage
79.14%
DIVERSIFY EQUITIES

Helping to add some stability to your equity allocation with fixed income ETFs that cover the broad market.

Performance

Net Asset Value
AUD 100.77
YTD Nav Return
-0.40%

Sustainability

MSCI ESG Fund Rating (AAA-CCC)
AA
MSCI ESG Quality Score (0-10)
7.17
MSCI Weighted Average Carbon Intensity (Tons CO2E/$M SALES)
41.15
MSCI Weighted Average Carbon Intensity % Coverage
16.31%

Performance

Net Asset Value
AUD 97.48
YTD Nav Return
-0.55%

Sustainability

MSCI ESG Fund Rating (AAA-CCC)
AA
MSCI ESG Quality Score (0-10)
7.15
MSCI Weighted Average Carbon Intensity (Tons CO2E/$M SALES)
-
MSCI Weighted Average Carbon Intensity % Coverage
0.00%

Performance

Net Asset Value
AUD 125.28
YTD Nav Return
-1.26%

Sustainability

MSCI ESG Fund Rating (AAA-CCC)
A
MSCI ESG Quality Score (0-10)
7.05
MSCI Weighted Average Carbon Intensity (Tons CO2E/$M SALES)
-
MSCI Weighted Average Carbon Intensity % Coverage
0.00%

Performance

Net Asset Value
AUD 95.78

Sustainability

MSCI ESG Fund Rating (AAA-CCC)
A
MSCI ESG Quality Score (0-10)
6.28
MSCI Weighted Average Carbon Intensity (Tons CO2E/$M SALES)
119.71
MSCI Weighted Average Carbon Intensity % Coverage
26.92%

Performance

Net Asset Value
AUD 101.44
YTD Nav Return
-1.93%

Sustainability

MSCI ESG Fund Rating (AAA-CCC)
A
MSCI ESG Quality Score (0-10)
5.72
MSCI Weighted Average Carbon Intensity (Tons CO2E/$M SALES)
4.28
MSCI Weighted Average Carbon Intensity % Coverage
0.09%
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READY TO TAKE THE NEXT STEP?

Book a meeting with your local Relationship Manager or sign up for an upcoming educational workshop.