Bond etf portfolios
BOND ETFs

SAME BENEFITS, DIFFERENT ASSET CLASS

If you like equity ETFs, then it’s time to give bond ETFs a closer look.
performance icon
Competitive performance
iShares bond ETFs have outperformed 49% of their peers over the last 3 years.*
Low cost tag
Low cost
On average, iShares bond ETFs cost 79% less than active mutual funds.†
Icon
Liquidity
Bond ETFs trade thousands of times throughout the day on the exchange, while individual bonds may not trade daily.‡

Bond challenge: low rates are here to stay

Fund expenses matter more than ever in today's low-rate environment, as high fees eat up a larger portion of your income. Learn how barbelling your bonds could help solve for low rates and the hunt for return.

THE BENEFITS OF BOND ETFs

Bond ETFs can bring competitive performance potential, low fees and liquidity to bond portfolios, just as equity ETFs do for stock portfolios.

  • It’s tough navigating bonds today.

    With interest rates near all-time lows, what you pay in expenses matters more than ever, since high fees can eat up a big chunk of your income.

    So, how do you steer through the choppy waters?  How can you pursue lower fees, higher income, and still potentially  generate competitive total returns?

    Many investors have arrived at a simple solution.  Just as they’ve used ETFs for stock investments to seek attractive returns and lower fees, they are taking the same approach with bonds. 

    In fact, bond ETFs are the fastest growing segment of the U.S. bond market, now over one trillion dollars globally.

    Like mutual funds, bond ETFs provide exposure to 100s of bonds in one easy trade.

    But, since they seek to track an index, they charge lower fees, freeing up more income and providing you with diversified bond exposure to seek attractive returns.

    iShares is a market leader in bond ETFs, managing more bond ETF assets than anyone else  and we pioneered the industry launching the first bond ETF in 2002.

    So, whether you are seeking bonds to diversify your stock portfolio or to pursue high income, there’s an ETF for you.

    You can't control the tides, but you can make sure your bond portfolio is prepared. Consider using iShares bond ETFs to help steer through the waves.

    Visit www.iShares.com to view a prospectus, which includes investment objectives, risks, fees, expenses and other information that you should read and consider carefully before investing. Investing involves risk, including possible loss of principal.

Manage fees in a low-rate world

As rates fall, bond expenses eat up a higher percentage of portfolio yield. On average, iShares bond ETFs cost 79% less than active mutual funds.*

Manage fees in a low rate world

* Source: Morningstar as of 6/30/21. Comparison is between the Prospectus Net Expense Ratio for the average Fixed Income iShares ETF (0.18%) and the average Fixed Income Open-End Mutual Fund (0.87%) available in the U.S. excluding money market funds.
† Source: Morningstar as of 6/30/21. Index performance is for illustrative purposes only. Index performance does not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.
‡ The Morningstar categories span the entire universe of ETFs and mutual funds, inclusive of active and passive, within the respective categories.


Competitive performance

Manage fees in a low rate world

Source: Morningstar as of 6/30/21. Comparison universe is ETFs and mutual funds within the fund’s Morningstar category and based on total return. Total return represents changes to the NAV and accounts for distributions from the funds (excluding any applicable sales charges). 

The following shows the number of funds rated against for each year shown for every fund: iShares Core U.S. Aggregate Bond ETF: rated against 437, 403, 348 and 264 Intermediate Core Bond funds over the 1-, 3-, 5- and 10-years respectively; iShares Core Total USD Bond Market ETF: rated against 587, 550 and 478 Intermediate Core-Plus Bond funds over the 1-, 3- and 5-years respectively; iShares National Muni Bond ETF: rated against 292, 254, 223 and 164 Muni National Intermediate funds over the 1-, 3-, 5- and 10-years respectively; iShares iBoxx $ Investment Grade Corporate Bond ETF: rated against 209, 194, 136 and 91 Corporate Bond funds over the 1-, 3-, 5- and 10-years respectively; BlackRock Ultra Short-Term Bond ETF: rated against 234, 204 and 162 Ultrashort Bond funds over the 1-, 3- and 5-years respectively; BlackRock Short Maturity Bond ETF : rated against 234, 204 and 162 Ultrashort Bond funds over the 1-, 3- and 5-years respectively; iShares 1-5 Year Investment Grade Corporate Bond ETF: rated against 579, 524, 462 and 303 Short-term Bond funds over the 1-, 3- and 5-years respectively; iShares Core 1-5 Year USD Bond ETF: rated against 579, 524 and 462 Short-term Bond funds over the 1-, 3- and 5-years respectively; iShares Broad USD High Yield Corporate Bond ETF: rated against 683 and 634 High Yield Bond funds over the 1- and 3-years respectively; iShares J.P. Morgan USD Emerging Markets Bond ETF: rated against 273, 245, 196 and 68 Emerging Markets Bond funds over the 1-, 3-, 5- and 10-years respectively. 

Past performance does not guarantee future results.


Every bond ladder can use an ETF
Adding an ETF to your bond ladders can potentially help manage cash flow, prevent cash drag and simplify your practice.
Icon seek magnifier