Has anyone used iBonds to build a bond ladder?
Has anyone used iShares Target Date iBond ETFs to build their bond ladder? If so, I’d love to know your experience as I start to consider my own ladder.
Here is how iShares describes this product: "iBonds exchange-traded funds (“ETFs”) are an innovative suite of bond funds that hold a diversified portfolio of bonds with similar maturity dates. Each ETF provides regular interest payments and distributes a final payout in its stated maturity year, similar to traditional bond laddering strategies. However, the funds’ unique structure is designed to help investors easily build bond ladders with only a handful of funds."
The expense ratios on the iBond Target Date Maturity ETFs range from 7 basis points for U.S. Treasuries; 10 bps for TIPS, Municipals, & Investment Grade Corporate; and 35 bps for the “High Yield & Income Corporate” ETF.
7 – 10 bps seems extremely reasonable for the increased diversification and professional purchasing/management of iBonds. Anyone care to comment?
Here is how iShares describes this product: "iBonds exchange-traded funds (“ETFs”) are an innovative suite of bond funds that hold a diversified portfolio of bonds with similar maturity dates. Each ETF provides regular interest payments and distributes a final payout in its stated maturity year, similar to traditional bond laddering strategies. However, the funds’ unique structure is designed to help investors easily build bond ladders with only a handful of funds."
The expense ratios on the iBond Target Date Maturity ETFs range from 7 basis points for U.S. Treasuries; 10 bps for TIPS, Municipals, & Investment Grade Corporate; and 35 bps for the “High Yield & Income Corporate” ETF.
7 – 10 bps seems extremely reasonable for the increased diversification and professional purchasing/management of iBonds. Anyone care to comment?
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