iShares iBonds Mar 2020 Corporate

published 15 July 2015

Symbol: IBDC

Expense Ratio: 0.10%

Typically, we’d recommend a diversified, high-quality bond ETF as a core holding. But with interest rates likely to rise, we’re steering clear of funds that hold particularly rate-sensitive debt. This ETF holds intermediate-term corporate debt, which is less sensitive to rate hikes than Treasuries of comparable maturities. The twist is that the ETF holds no bonds that mature after March 31, 2020. The fund will close at that time and return remaining assets to shareholders. The current yield is 2.3%.