The three key elements of a bond ETF

Matthew Tucker, head of Americas iShares Fixed Income Strategy, explores common misconceptions about bond ETFs and provides three things every investor should know about this investment vehicle.

 

Our Experts

Peter Fisher, Senior Director of The BlackRock Investment Institute and former U.S. Treasury Under Secretary for Domestic Finance

Barbara Novick, BlackRock Vice Chairman

Richie Prager, BlackRock Head of Trading & Liquidity Strategies

Matthew Tucker, BlackRock Head of Americas iShares Fixed Income Strategy

Mark Wiedman, BlackRock Global Head of iShares

Media Contacts:

Melissa Garville
+1 212 810 5528
Paul Young
+1 212 810 8142

Bond ETFs to the Rescue

Thumbnail: WSJ Bond ETFs Op Ed

Read this Wall Street Journal Op Ed by Mark Wiedman, Global Head of iShares, and Richie Prager head of BlackRock’s Trading & Liquidity Strategies Group.

Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses which may be obtained visiting the iShares ETF and BlackRock Mutual Fund prospectus pages. Read the prospectus carefully before investing.

Investing involves risk, including possible loss of principal.

Bond values fluctuate in price so the value of your investment can go down depending on market conditions.

The two main risks related to fixed income investing are interest-rate risk and credit risk. Typically, when interest rates rise, there is a corresponding decline in the market value of bonds. Credit risk refers to the possibility that the issuer of the bond will not be able to make principal and interest payments.

Securities with floating or variable interest rates may decline in value if their coupon rates do not keep pace with comparable market interest rates. The Fund’s income may decline when interest rates fall because most of the debt instruments held by the Fund will have floating or variable rates.

International investing involves risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. These risks often are heightened for investments in emerging/ developing markets, in concentrations of single countries or smaller capital markets.

Although market makers will generally take advantage of differences between the NAV and the trading price of iShares Fund shares through arbitrage opportunities, there is no guarantee that they will do so. There can be no assurance that an active trading market for shares of an ETF will develop or be maintained.

Diversification and asset allocation may not protect against market risk or loss of principal.

The Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

©2014 BlackRock, Inc. All rights reserved. BLACKROCK, BLACKROCK SOLUTIONS, ALADDIN, iSHARES, iSHARESBONDS, iSHARES CONNECT, LIFEPATH, SO WHAT DO I DO WITH MY MONEY, INVESTING FOR A NEW WORLD, BUILT FOR THESE TIMES, CoRI and the CoRI logo are registered and unregistered trademarks of BlackRock, Inc., or its subsidiaries in the United States and elsewhere. All other marks are the property of their respective owners.

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