2024-02-07 15:14:25 ET
Summary
- iShares iBonds 2026 Term High Yield and Income ETF has an attractive 7.7% yield, but it is not a long-term investment.
- The IBHF ETF is an element of a bond ladder ETF series and will be converted to cash in December 2026.
- Bond ladders in high-yield bonds are for investors who have enough capital to build ladders in safer bonds first.
- If you think rates will go down, bond ladders can lock in high rates for a few more years.
IBHF strategy
iShares iBonds 2026 Term High Yield and Income ETF ( IBHF ) is a high yield bond fund paying monthly distributions with a total expense ratio of 0.35%. It was launched on 11/10/2020 with the objective of investing in components of the Bloomberg 2026 Term High Yield and Income Index. The fund may also invest in ETFs, U.S. government securities, and cash equivalents. It has 220 holdings, mostly corporate bonds below investment grade with a maturity date between 1/1/2026 and 12/15/2026, and an average yield to maturity of 7.68%. The fund itself has a trailing 12-month yield of 7.42%....
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For further details see:
IBHF: 7.7% Yield To Be Part Of A Bond Ladder