iShares Launches the First ETFs that Access Baa – Ba and B –
Ca Rated Corporate Debt
SAN FRANCISCO--(BUSINESS WIRE)--
BlackRock, Inc. (NYSE:BLK) announced that its iShares Exchange Traded
Funds (ETFs) business, the world’s largest manager of ETFs, has launched
the first suite of corporate credit quality ETFs. The new iShares ETFs
that began trading today are the iShares Baa – Ba Rated Corporate Bond
Fund (BATS: QLTB) and the iShares B – Ca Rated Corporate Bond Fund
(BATS: QLTC). The two new funds are the first ETFs designed to offer
precise exposure to specific credit quality segments of the U.S.
corporate debt market. Today’s launch follows the February debut of the
iShares Aaa – A Rated Corporate Fund (NYSE Arca: QLTA), which offers
exposure to the highest quality USD-denominated corporate bonds rated
Aaa – A.
“The creation of the iShares suite of corporate credit quality ETFs is a
significant milestone for investors and the industry,” said Matthew
Tucker, Head of iShares Fixed Income Investment Strategy at BlackRock.
“Investors have asked for more targeted iShares fixed income ETFs in
order to create custom portfolios and adjust their portfolio exposures
quickly as debt market conditions change. The new iShares suite
transforms how investors can access specific slices of corporate bonds
and brings transparent pricing to an otherwise opaque area of fixed
income.”
The iShares Baa – Ba Rated Corporate Bond Fund is the first ETF that
offers access to corporate debt issues that typically offer higher
yields than A-rated issuers with less credit risk than broad high yield
debt. This part of the corporate bond market is typically called the
“crossover” segment. The fund expense ratio is .30 percent, and is
benchmarked to the Barclays Capital U.S. Corporate Baa – Ba Capped Index.
The iShares B – Ca Rated Corporate Bond Fund is the first ETF that
focuses exclusively on access to higher yielding high yield corporate
debt issuers rated B – Ca. With the purchase of a single fund, investors
can access B to Ca-rated high yield bonds with an iShares ETF that are
broadly diversified across sectors and maturities. The fund expense
ratio is .55 percent, and is benchmarked to the Barclays Capital U.S.
Corporate B – Ca Capped Index.
“The new suite of three iShares corporate bond ETFs supports a highly
flexible and uniquely modular portfolio management approach to the
corporate credit spectrum. Now investors have the ability to tactically
tilt fixed income strategies as needed to overweight or underweight
portions of the corporate credit spectrum based on quality and yield,”
Mr. Tucker said.
“Fixed income market conditions can change quickly, so flexibility in
managing a portfolio is critical for investors – and a core principle
driving the continuous product innovation effort taking place at
iShares,” he said.
Details about the new funds can be found using the links below:
-
iShares Baa – Ba Rated Corporate Bond Fund (QLTB)
-
iShares B – Ca Rated Corporate Bond Fund (QLTC)
About BlackRock
BlackRock is a leader in investment management, risk management and
advisory services for institutional and retail clients worldwide. At
March 31, 2012, BlackRock’s AUM was $3.684 trillion. BlackRock offers
products that span the risk spectrum to meet clients’ needs, including
active, enhanced and index strategies across markets and asset classes.
Products are offered in a variety of structures including separate
accounts, mutual funds, iShares® (exchange-traded
funds), and other pooled investment vehicles. BlackRock also offers risk
management, advisory and enterprise investment system services to a
broad base of institutional investors through BlackRock Solutions®.
Headquartered in New York City, as of March 31, 2012, the firm has
approximately 9,900 employees in 27 countries and a major presence in
key global markets, including North and South America, Europe, Asia,
Australia, and the Middle East and Africa. For additional information,
please visit the Company's website at www.blackrock.com.
About iShares
iShares is the global product leader in exchange traded funds with over
500 funds globally across equities, fixed income and commodities, which
trade on 20 exchanges worldwide. The iShares Funds are bought and sold
like common stocks on securities exchanges. The iShares Funds are
attractive to many individual and institutional investors and financial
intermediaries because of their relative low cost, tax efficiency and
trading flexibility. Investors can purchase and sell shares through any
brokerage firm, financial advisor, or online broker, and hold the funds
in any type of brokerage account. The iShares customer base consists of
the institutional segment of pension plans and fund managers, as well as
the retail segment of financial advisors and high net worth individuals.
plans and fund managers, as well as the retail segment of financial
advisors and high net worth individuals.
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, which may be
obtained by calling 1-800-iShares (1-800-474-2737) or by visiting www.iShares.com.
Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal.
Bonds and bond funds will decrease in value as interest rates rise. . In
addition to the normal risks associated with investing, narrowly focused
investments typically exhibit higher volatility. The Fund is subject to
credit risk, which refers to the possibility that the debt issuers may
not be able to make principal and interest payments or may have their
debt downgraded by ratings agencies.
This material represents an assessment of the market environment at a
specific time and is not intended to be a forecast of future events or a
guarantee of future results. This information should not be relied upon
by the reader as research or investment advice regarding the funds or
any security in particular.
Transactions in shares of the iShares Funds will result in brokerage
commissions and will generate tax consequences. iShares Funds are
obliged to distribute portfolio gains to shareholders. Shares of the
iShares Funds may be sold throughout the day on the exchange through any
brokerage account. However, shares may only be redeemed directly from a
Fund by Authorized Participants, in very large creation/redemption units.
The iShares Funds ("Funds") are distributed by BlackRock Investments,
LLC (together with its affiliates, “BlackRock”).
The iShares Funds are not sponsored, endorsed or issued by Barclays
Capital Inc., nor does this company make any representation regarding
the advisability of investing in the Funds. BlackRock is not affiliated
with the company listed above. iS-7118-0412
* Not FDIC Insured * No Bank Guarantee * May Lose Value
BlackRock, Inc.
Christine Hudacko, 415-670-2687
christine.hudacko@blackrock.com
Diane
Henry, 415-670-4567
diane.henry@blackrock.com
Source: BlackRock, Inc.