(IBDW) iShares Trust - iShares - Ratings and Ratios

The iShares iBonds Dec 2031 Term Corporate ETF (IBDW) is structured to track an index of U.S. dollar-denominated, taxable, investment-grade corporate bonds, specifically those maturing between January 1, 2031, and December 15, 2031. This ETF is part of a category known as target maturity funds, which are designed to provide investors with a predictable return profile as the bonds approach their maturity dates.

As a non-diversified fund, IBDW can concentrate its investments in a smaller number of securities, which may heighten risk but also has the potential to amplify returns. The fund commits at least 80% of its assets to the component instruments of its underlying index and allocates at least 90% to fixed income securities of the types included in the index, ensuring a focused investment strategy.

With an AUM of over $1.35 billion, IBDW benefits from economies of scale, which can contribute to lower expense ratios and tighter tracking error relative to its benchmark. This scale also enhances liquidity, making it easier for investors to buy and sell shares without significantly impacting the price. The fund’s focus on investment-grade corporate bonds means it emphasizes credit quality, reducing default risk compared to lower-rated debt. However, like all fixed income securities, it remains exposed to interest rate risk, which can cause price fluctuations in the portfolio.