New Listing

BlackRock expands fixed-maturity range with US Treasury and Italian BTP ETFs

Europe's first exposure to fixed-maturity Italian government bond ETFs

Tom Eckett

Brett Pybus BlackRock new

BlackRock has expanded its fixed-maturity iBonds range with the launch of US and Italian government bond ETFs.

The iShares iBonds Dec 2027 Term $ Treasury UCITS ETF (27IT) and the iShares iBonds Dec 2029 Term $ Treasury UCITS ETF (29IT) are listed on Euronext Amsterdam with total expense ratios (TERs) of 0.10%.

27IT and 29IT track the respective 2027 and 2029 maturities of the ICE Maturity US Treasury UCITS indices which offer exposure to US Treasuries that mature on a defined date.

27IT currently has a yield to maturity of 4.80% while 29IT currently yields 4.67%.

BlackRock already offers one fixed-maturity US Treasury ETF, the iShares iBonds Dec 2025 Term $ Treasury UCITS ETF (IT25), which has gathered $28m assets under management (AUM) since launching in September 2023.

The iShares iBonds Dec 2026 Term € Italy Govt Bond UCITS ETF (26TP) and the iShares iBonds Dec 2028 Term € Italy Govt Bond UCITS ETF (28IY) are listed on Deutsche Boerse with TERs of 0.12%.

They are Europe’s first fixed-maturity ETFs to offer exposure to Italian government bonds which currently offer yields to maturity of 3.44% for 26TP and 3.41% for 28IY.

Based in euros, they track the ICE 2026 Maturity Italy UCITS index and the ICE 2028 Maturity Italy UCITS index, respectively.

Fixed-maturity ETFs allow investors to target specific maturities while benefitting from the diversification, transparency and liquidity benefits of ETFs.

Instead of sourcing individual bonds, investors can capture defined yields over set investment periods via a diversified basket of bonds wrapped in ETF format.

Brett Pybus (pictured), global co-head of iShares fixed income ETFs at BlackRock, said:. “iBonds ETFs are designed to mature like a bond, trade like a stock and diversify like a fund, all in a cost-efficient and transparent ETF wrapper.

“As the pool of iBonds UCITS ETFs grows, investors will be able to enjoy additional versatility, enabling them to curate portfolios to meet their needs.”

The latest launches bring BlackRock’s fixed-maturity iBonds range to 13 ETFs which also offers exposure euro and US dollar-denominated corporate bonds.

The firm launched its first iBonds ETFs in Europe in August 2023.

Euro-denominated corporate bond ETFs, the iShares iBonds Dec 2028 Term € Corp UCITS ETF (IB28) and iShares iBonds Dec 2026 Term € Corp UCITS ETF (IB26), have been the most popular, claiming $919m and $658m AUM, respectively.

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