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

 

87%

 

Strong performance

14 of 23 U.S. bond funds, accounting for 87% of assets, have 1st quartile performance1

 

87%

 

Low cost

20 of 23 U.S. bond funds, accounting for 87% 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    $1.63T 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.

Are bonds in your blind spot?

Uncover the hidden risk in your portfolio

As an investor, my client’s approach is
and my client uses fixed income to
See my risk

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
Multi-Sector
Strategic Income Opportunities Fund BSIIX 1st Yes
Total Return Fund MAHQX 1st
Low Duration Bond Fund BFMSX 1st
Core Bond Fund BFMCX 2nd Yes
CoreAlpha Bond Fund BCRIX 3rd Yes
Impact Bond Fund BIIIX - Yes
Credit
High Yield Bond Fund BHYIX 1st Yes
Credit Strategies Income Fund BMSIX 1st Yes
Floating Rate Income Fund BFRIX 2nd Yes
Global
Strategic Global Bond Fund MAWIX 2nd Yes
Emerging Markets Flexible Dynamic Bond Fund BEDIX 2nd Yes
Government / Agency
GNMA Fund BGNIX 1st Yes
U.S. Government Bond Fund PNIGX 1st Yes
U.S. Mortgage Fund MSUMX 1st Yes
Inflation Protected Bond Fund BPRIX 2nd Yes
National Municipal
Strategic Municipal Opportunities Fund MAMTX 1st
National Municipal Fund MANLX 1st Yes
High Yield Municipal Fund MAYHX 2nd Yes
Short-Term Municipal Fund MALMX 4th Yes
State-Specific Municipal
California Municipal Opportunities Fund MACMX 1st Yes
New York Municipal Opportunities Fund MANKX 1st Yes
New Jersey Municipal Bond Fund MANJX 1st Yes
Pennsylvania Municipal Bond Fund MAPYX 1st Yes

*For fund performance and standardized ranking periods, click on the fund name.

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 (%)
Diversify Equities
iShares Core U.S. Aggregate Bond ETF AGG Investment Grade 0.05 / 0.06
iShares Core Total USD Bond Market ETF IUSB Total Market 0.08 / 0.09
iShares iBoxx $ Investment Grade Corporate Bond ETF LQD Investment Grade Credit 0.15
iShares National Muni Bond ETF MUB Municipal Bonds 0.25
Pursue Income
iShares iBoxx $ High Yield Corporate Bond ETF HYG High Yield 0.50
iShares 0-5 Year High Yield Corporate Bond ETF SHYG Short-Term High Yield 0.30
iShares J.P. Morgan USD Emerging Markets Bond ETF EMB EM Government Bonds 0.40 / 0.59
iShares U.S. Preferred Stock ETF PFF Preferred Stocks 0.47
Put Cash to Work
iShares Short Maturity Bond ETF (Active) NEAR Diversified Short-Term Bonds 0.25
iShares 1-3 Year Credit Bond ETF CSJ 1-3 Year Credit 0.20
iShares 0-5 Year Investment Grade Corporate Bond ETF SLQD Short-Term Investment Grade Credit 0.08
iShares Floating Rate Bond ETF FLOT Floating Rate 0.20

 

Net expense ratios shown for AGG, IUSB and EMB reflect contractual fee waivers in place until 6/30/21, 2/29/24 and 2/28/23 respectively.

*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 common misconceptions about fixed income investing?

    In a changing interest rate environment, many Americans with investments lack a good understanding of the impact of rates on their portfolios – and even many who claim to be “knowledgeable” about fixed income have fundamental misconceptions about those investments, according to new research from BlackRock.

    BlackRock conducted a survey from April 21 to 23, and covered 417 Americans with $50,000 or more in investible assets. Common misconceptions included:

    • Nearly one third (31%) of those surveyed incorrectly believe that when it comes to fixed income investing, “you can’t lose your money.”
    • Only 31% correctly noted that if interest rates rise, the effect on the fixed income investments that investors already own is negative (when interest rates rise, bond prices fall).
    • 60% of americans surveyed don‘t consider themselves knowledgeable regarding fixed income, and just 43% said they understand the market and economic forces that drive bond prices.

    Learn more

  • 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
  • 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.

  • 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.