NEW YORK, May 20, 2021–BlackRock today announced the launch of the iShares BBB
Rated Corporate Bond ETF (NYSE:LQDB), continuing to expand fixed income choices for
investors. The fund aims to reflect the overarching U.S. BBB corporate bond market by
seeking to track the iBoxx USD Liquid Investment Grade BBB 0+ Index.
“The number of BBB-rated U.S. corporate bonds outstanding has surged 257% since the
end of 2009, and new issuance continues to be met with strong demand,” said Steve
Laipply, U.S. Head of iShares Fixed Income ETFs for BlackRock.
“LQDB allows clients to access the $4.34 trillionBBB-rated corporate bond market in an efficient, scalable and flexible way through a single ETF, providing investors access and flexibility within this sector.”
BBB corporate bonds carry an investment-grade credit rating and sit in between higherrated investment-grade (A- and higher) and speculative-grade rated (BB+ and lower) corporate bonds. BBB-rated firms are issuing new debt at elevated levels to take advantage of historically low interest rates over the last decade, and investors have continued to buy new BBB issuance hitting the market to pursue relatively higher yields while remaining invested in investment-grade credit.
Expanding the iShares investment grade corporate bond ETF suite
LQDB is a market cap-weighted fundcontaining a diversified selection of BBB-rated
corporate bonds, with a 3% issuer cap and a pro rata distribution of any excess weight
across the remaining issuers. The addition of LQDBbrings the total number of U.S. iShares fixed income ETFs available to investors to 107, representing $474.7billion in assets under management (AUM). This launch increases iShares’ total suite of U.S. Corporate Bond ETFs to 27funds and $108 billioninAUM.
Investors may now access a wide range of bond exposures including:
Broad LQD, USIG
Short-term SLQD, IGSB
Credit quality specific QLTA
Sustainable SUSC, SUSB
Precision exposure at scale
The adoption of fixed income ETFs continues to grow and transform the way portfolio
builders access the bond markets and manage risk. More investors are turningto fixed
income ETFs not just for core bonds but alsoto gain precise, efficient,and scalable
exposuresto segmentsof the bond market whileincreasing diversification, enhancing
liquidity, and lowering trading costs. Global fixed income ETF AUM are currently $1.6 billion and represent less than 2% of the total bond market.
BlackRock expects global fixed income ETF AUM to reach $2 trillion by 2024.5
BlackRock’s purpose is to help more and more people experience financial well -being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate | Twitter: @blackrock
iShares unlocks opportunity across markets to meet the evolving needs of investors. With more than twenty years of experience, a global line-up of 900+ exchange traded funds (ETFs) and $2.81 trillion in assets under management as of March 31, 2021, iShares continues to drive progress for the financial industry. iShares funds are powered by the expert portfolio and risk management of BlackRock.
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 by
visiting www.iShares.com or www.blackrock.com. Read the prospectus carefully before
investing. Investing involves risk, including possible loss of principal.Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments. Diversification and asset allocation may not protect against market risk or loss of principal. Buying and selling shares of ETFs may result in brokerage commissions. There can be no assurance that an active trading market for shares of an ETF will develop or be maintained. Prepared by BlackRock Investments, LLC, member FINRA.This information should not be relied upon as research, investment advice, or a
recommendation regarding any products, strategies, or any security in particular. This
Source: BlackRock, as of 5/11/2021
Source: BlackRock, Turning Point Paper, July 2020
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Markit Indices
Limited, nor does this company make any representation regarding the advisability of
investing in the Funds. BlackRock is not affiliated with Markit Indices Limited.
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