iShares to offer three new investment-grade corporate bond term funds

By Toni Weeks

San Diego, Nov. 14 - iShares Trust announced in separate N-1A filings with the Securities and Exchange Commission its plans to offer three new exchange-traded funds that focus on investment-grade corporate debt.

The iShares 2016 Investment Grade Corporate Bond ETF, iShares 2020 Investment Grade Corporate Bond ETF and iShares 2023 Investment Grade Corporate Bond ETF will launch in early 2013.

The new ETFs will build on the success of the iShares iBoxx $ Investment Grade Corporate Bond Fund but will not include financial issuers.

Each fund will seek investment results that correspond generally to the price and yield performance, before fees and expenses, of an underlying index. The underlying indexes have not been determined yet, but all will be based on the Barclays U.S. Corporate index, which is comprised of dollar-denominated, taxable, investment-grade bonds.

The securities within the index will mature within a certain time frame. Each fund will terminate on a specific date, at which time its assets will be distributed to investors.

Securities within an index may be issued by both U.S. and non-U.S. issuers with an outstanding face value of at least $250 million at time of inclusion.

James Mauro and Scott Radell will head up each fund's portfolio management team.

Shareholder and management fees have not yet been detailed. The ticker symbols are not available yet.

BlackRock Fund Advisors will serve as the investment adviser to the funds.

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