BlackRock adds to iShares Core lineup with iShares Core Total USD Bond Market ETF

By Toni Weeks

San Luis Obispo, Calif., June 11 – iShares Trust announced on Tuesday additions to its lineup of iShares Core exchange-traded funds. Sponsor BlackRock, Inc. will add 10 equity and fixed-income iShares Core funds, of which four are new and six are repriced and/or renamed existing funds.

The new funds include the iShares Core Total USD Bond Market ETF (NYSE: IUSB).

“Investors seek value for money in long-term investments, especially in core broad market exposures,” Patrick Dunne, head of Global Markets & Investments for iShares, said in a BlackRock press release. “That’s where we are aiming to accelerate iShares growth by expanding the iShares Core.”

According to BlackRock, investors are turning to ETFs for long-term investments. A recent survey of current ETF investors in the U.S. found that 85% are using ETFs for either long-term holdings or for a combination of long-term and short-term holdings, whereas only 15% were using ETFs for short-term investments only. In addition, BlackRock found that almost 60% of financial advisors are using ETFs in the core, with roughly 60% of them expecting to increase their usage in the next two to three years.

“The iShares Core is designed to serve this secular shift to ETF investing by adding choice and flexibility,” Dunne added.

Fund details

According to an N-1A filing with the Securities and Exchange Commission, the iShares Core Total USD Bond Market ETF will seek to track the investment results of an index composed of U.S. dollar-denominated bonds that are rated either investment grade or high yield.

The underlying index is the Barclays U.S. Universal index, which includes U.S. Treasury bonds; government-related bonds of U.S. and non-U.S. agencies or sovereign, quasi-sovereign, supranational and local authority debt; investment-grade and high-yield U.S. corporate bonds, mortgage-backed securities, Eurodollar bonds, bonds registered with the SEC or offered pursuant to Rule 144A and U.S. dollar-denominated emerging market bonds.

James Mauro and Scott Radell are the portfolio managers.

There are no shareholder fees. Total annual fund operating expenses of 0.15% take into account a 0.15% management fee and a fee waiver agreement that covers other fund fees and expenses.

San Francisco-based BlackRock Fund Advisors serves as the investment adviser.

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