Fixed Income Investments

Fixed income is an investing approach focused on preservation of capital and income. If you are seeking a steady and reliable stream of income with lower risk than stocks, you may want to consider
fixed income.


Our fixed income funds offer quality and value

 

88%

 

Strong performance

15 of 25 U.S. bond funds, accounting for 88% of our assets, have 1st quartile performance1

 

88%

 

Low cost

22 of 25 U.S. bond funds, accounting for 88% of our fixed income funds, are priced in the least expensive quartile2

 

#1

 

Largest selection

Largest selection of bond ETFs in the U.S. from low-cost core offerings to targeted exposures3

Learn more about fixed income

Investors trust us with more assets than any other fixed income manager

  • With one of the widest ranges of bond portfolios in the industry, we are trusted to manage $1.85T in assets, more than any other firm.4
  • We are the #1 provider of separately managed accounts providing a customized approach to your investing needs.5
  • Our high-performing, low cost mutual funds feature a diverse range of taxable and municipal strategies.

Fixed income solutions

Achieving your investment goals requires the right tools. We believe the quality, value and breadth of our fixed income solutions sets BlackRock apart from the rest, helping you build a more balanced portfolio that targets your specific needs.

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Actively managed bond strategies have the flexibility to pursue the most attractive opportunities in the fixed income markets while seeking above-benchmark returns. With experts in every sector of the world’s bond markets, BlackRock combines global reach with local expertise to access opportunities wherever they reside.

 

Fund Ticker 5 Year Morningstar Quartile Ranking Least Expensive Quartile2 30-day SEC Yield (subsidized/unsubsidized)
Multi-Sector
Strategic Income Opportunities Fund BSIIX 1st Yes 3.13% / 3.13%
Total Return Fund MAHQX 1st Yes 3.11% / 3.07%
Low Duration Bond Fund BFMSX 2nd Yes 2.68% / 2.67%
Core Bond Fund BFMCX 2nd Yes 2.80% / 2.73%
CoreAlpha Bond Fund BCRIX 2nd Yes 3.06% / 3.04%
Impact Bond Fund BIIIX - Yes 3.11% / 1.95%
Credit
High Yield Bond Fund BHYIX 1st Yes 5.83% / 5.83%
Credit Strategies Income Fund BMSIX 1st Yes 4.24% / 4.05%
Floating Rate Income Fund BFRIX 1st Yes 4.54% / 4.53%
Global
Strategic Global Bond Fund MAWIX 2nd Yes 3.19% / 2.83%
Emerging Markets Flexible Dynamic Bond Fund BEDIX 2nd Yes 6.55% / 6.13%
Emerging Markets Bond Fund BEHIX - Yes 5.41% / 3.92%
Emerging Markets Local Currency Bond Fund BECIX - Yes 5.75% / 3.98%
Government / Agency
GNMA Fund BGNIX 1st Yes 2.74% / 2.52%
U.S. Government Bond Fund PNIGX 1st Yes 2.39% / 2.13%
U.S. Mortgage Fund MSUMX 1st Yes 3.07% / 2.93%
Inflation Protected Bond Fund BPRIX 2nd Yes 4.86% / 4.79%
National Municipal
Strategic Municipal Opportunities Fund MAMTX 1st 2.95% / 2.89%
National Municipal Fund MANLX 1st Yes 2.36% / 2.27%
High Yield Municipal Fund MAYHX 1st Yes 3.33% / 3.27%
Short-Term Municipal Fund MALMX 4th Yes 1.54% / 1.45%
State-Specific Municipal
California Municipal Opportunities Fund MACMX 1st 2.19% / 2.17%
New York Municipal Opportunities Fund MANKX 1st 2.58% / 2.45%
New Jersey Municipal Bond Fund MANJX 1st Yes 2.78% / 2.56%
Pennsylvania Municipal Bond Fund MAPYX 1st Yes 2.42% / 2.22%

 30-day SEC yields as of most recent quarter end.

The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. For fund performance and standardized ranking periods, click on the fund name.

Learn about BlackRock munis

Exchange-traded funds (ETFs) first appealed to equity investors, providing efficient access to the world’s stock markets. Now ETFs are transforming fixed income investing, with assets quadrupling since 2008.8 iShares® has bond ETFs that deliver income while also helping investors seek stability, growth, and other financial outcomes.

 

Fund Ticker Exposure Net/Gross Expense Ratio (%) 30-day SEC Yield (subsidized/unsubsidized)
Diversify Equities
iShares Core U.S. Aggregate Bond ETF AGG Investment Grade 0.05 / 0.06 3.06% / 3.06%
iShares Core Total USD Bond Market ETF IUSB Total Market 0.06 / 0.07 3.31% / 3.30%
iShares iBoxx $ Investment Grade Corporate Bond ETF LQD Investment Grade Credit 0.15 4.12%
iShares National Muni Bond ETF MUB Municipal Bonds 0.07 2.44%
Pursue Income
iShares iBoxx $ High Yield Corporate Bond ETF HYG High Yield 0.49 5.80%
iShares 0-5 Year High Yield Corporate Bond ETF SHYG Short-Term High Yield 0.30 5.76%
iShares J.P. Morgan USD Emerging Markets Bond ETF EMB EM Government Bonds 0.40 5.47%
iShares U.S. Preferred Stock ETF PFF Preferred Stocks 0.47 5.44%
Put Cash to Work
iShares Short Maturity Bond ETF (Active) NEAR Diversified Short-Term Bonds 0.25 2.49%
iShares Short-Term Corporate Bond ETF IGSB 1-5 Year U.S. Corporate Bonds 0.06 3.09%*
iShares 0-5 Year Investment Grade Corporate Bond ETF SLQD Short-Term Investment Grade Credit 0.06 3.21%
iShares Floating Rate Bond ETF FLOT Floating Rate 0.20 2.49%

 

Net expense ratios shown for AGG and IUSB reflect contractual fee waivers in place until 6/30/26 and 2/29/24, respectively.

30-day SEC yield is shown as of most recent quarter end. If the fund only has one yield, the unsubsidized is listed.
*The 30-Day SEC Yield of IGSB as of 6/30/18 is the yield that followed a different investment strategy under the name iShares 1-3 Year Credit Bond ETF. The new investment strategy became effective on 8/1/18.

The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. For fund performance and standardized ranking periods, click on the fund name.

Separately managed accounts (SMAs) give you the opportunity to partner with a dedicated BlackRock portfolio manager6 to help you build fixed income portfolios through a personal and flexible approach. Whether you are looking for income, less volatility or diversification, we offer a range of taxable and municipal investment strategies that can be customized to your unique investment needs.

Access through
an SMA

Municipal and taxable fixed income strategies available

 

Learn more

Leverage as a guide

Paper models for guidance in building your fixed income portfolio

 

Learn more

Implement through
a managed
portfolio strategy

A selection of managed portfolio strategies designed with specific outcomes and risk in mind7

 

Learn more

Want to know more about fixed income?

Hear from Jeff Rosenberg,
BlackRock's Chief Fixed Income Strategist, on what fixed income investments are and the types that exist.

  • View transcript

    Q: What is fixed income?

    Fixed income is nothing more than a fancy word for the world of investing in bonds. And when we think about the stock market, it turns out that the world of investing in bonds is much, much larger. What does bond investing entail? Well it entails interest rates, and government bonds, but so much more than government bonds is available to investors inside the overall bond market. What are some of the other opportunities for investors in bonds include high yield bonds, and investment grade bonds, global opportunities in non-dollar-denominated developed market bonds, and opportunities in emerging markets both across dollar-denominated issues, from sovereign, that’s country issuers, corporate issuers, also typically in dollar form, as well as local currency-denominated emerging market bonds. The world of bonds goes beyond fixed income in the sense of we have floating rate bonds. We have things that are in the bond market that are not bonds, they are called loans. That’s the bank loan market. One of the attractions to the bank loan market is that it is generally a floating rate market. Floating rate means that rather than fixed, as interest rates rise, the coupons on your loans in this case can rise as well.

More about fixed income

What are the potential benefits of fixed income?

Fixed income investments can potentially benefit investors in different ways, depending on their financial goals.

If you are seeking to grow your assets over time to save for retirement or other long-term goals, you probably hold a significant amount of equity in your portfolio. Allocating a portion of your portfolio to fixed income investments can potentially help offset losses when stock markets are erratic.

If you are seeking to generate income, fixed income investments are likely a critical part of your portfolio. Fixed income investors receive a fixed amount of income at a pre-determined cadence in the form of coupon payments on bond holdings. Fixed income asset classes provide different levels of yield and entail different types and amounts of risks.

Reasons to consider bond funds :

  • Capital preservation
  • Income generation
  • Diversification from equity market risk

What are the risks associated with fixed income?

Bonds are broadly known to carry lower risk than stocks. Fixed income assets generally are less sensitive to most macro threats such as economic downturns and geopolitical events. But there are risks associated with fixed income investments.

  • Interest rate risk garners the most attention among investors because when interest rates rise, bond prices fall. Interest rate movements are the major cause of price volatility in bond markets.
  • Inflation is another source of risk for bond investors. If the rate of inflation outpaces the fixed amount of income a bond provides, the investor loses purchasing power.
  • Credit risk (also known as business risk or financial risk) refers to the possibility of an issuer defaulting on its debt obligation.
  • Liquidity risk is the risk that an investor wishing to sell a fixed income asset is unable to find a buyer.

You can manage these risks by diversifying investments within your fixed income portfolio.

Why invest in fixed income securities?

  • Diversification. Because the performance of fixed income securities does not tend to be synchronized with stock performance, they offer a potential hedge against equity market volatility.
  • Stable Income. Fixed income assets seek to provide regular income to the investor. In the case of many municipal bonds, the income is exempt from taxes.
  • Total Return. Some fixed income assets offer the potential to generate attractive returns. Investors can seek higher returns by assuming more credit risk or interest rate risk.

While it's possible for an individual investor to buy a single bond or other fixed income security, building a diversified portfolio of individual bonds requires a significant amount of assets. High minimum investment requirements, high transaction costs and a lack of liquidity in the bond market makes it difficult for individuals to buy and sell many types of fixed income securities.

But individuals can still invest in fixed income through mutual funds and exchange-traded funds. BlackRock offers cost-effective portfolios managed by some of the industry's most respected fixed income professionals.

  • Why BlackRock?

    Investors trust BlackRock with more assets than any other fixed income manager.4 Our goal is to provide you with the quality and value you deserve and expect, evidenced through our history of attractive performance, competitive prices and a comprehensive set of offerings.