They have a specified maturity date. ETFs reimburse a final payment at maturity, similar to traditional bonds.
They can be bought and sold like stocks, providing flexibility for trading over time.
They offer diversified bond exposure to a desired asset class in a single trade.
They trade on an exchange, providing access to bond markets for all types of investors (traditionally challenging to navigate), while maintaining diversification.
They provide diversified exposure to bonds that mature in the calendar year corresponding to the fund's name, allowing you to target specific points on the yield curve.
They offer a defined maturity date which can help plan an investment or have the funds available for an upcoming expense.
iBonds® are launched with a start capital, and the fund is open for investors.
- Investors allocate assets to iBonds®, and AUM grows.
- iBonds® are designed to replicate a yield to maturity ("YTM") comparable to the underlying bond portfolio.
Underlying bonds mature, and the portfolio is gradually transferred to cash equivalents.
The ETF is delisted, and the net proceeds are paid to shareholders.
Update to | Returns Are Net of Fees (as an example 1.50% per year)