Introduction to bonds and fixed income | iShares - Blackrock (2024)

FAQs

What is fixed income BlackRock? ›

Index investing. BlackRock is a provider of indexed fixed income investments, with institutional index mutual funds and ETF strategies spanning the world's investable fixed income markets.

Investment Approach

The Fund invests at least 80% of its total assets in fixed income securities (such as bonds) and money-market instruments (i.e. debt securities with short term maturities) which are issued by companies.

A bond, or fixed income, ETF is a collection of individual bonds that trades on exchange, making investing in fixed income simple and transparent, especially during periods of market volatility.

BlackRock Income Fund has an expense ratio of 0.87 percent.

Fixed income as an asset class is generally less volatile than equities (stocks), and is considered to be more conservative. A well-diversified portfolio should have some allocation of fixed income. For some investors, this allocation increases as their investment time horizon shortens (e.g., as retirement approaches).

Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed-income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors.

The Automatic Investment Plan (“AIP”) allows you to invest in your BlackRock funds on a periodic basis for a minimum of $50 per fund.

Bonds are a type of fixed-income investment. You can make money on a bond from interest payments and by selling it for more than you paid. You can lose money on a bond if you sell it for less than you paid or the issuer defaults on their payments.

Bond ETFs often have lower expense ratios than bond funds. This is because ETFs have passive management. Bond funds may have higher expenses because of the active management and the costs associated with mutual fund operations.

What is the best fixed-income ETF? ›

While it may be a great time to buy, hold, and ladder bonds, the outlook is also bright for investors in funds that manage bonds with an eye to making money as prices rise.

BlackRock's unconstrained fixed income strategies navigate across sectors to optimize for yield, while managing downside risk. Total Return/Core. BlackRock's Multi-sector Core and Core Plus strategies are designed to seek consistent, attractive active returns across all market cycles via a dynamic multi-sector approa.. ...

The moderately conservative allocation is 25% large-cap stocks, 5% small-cap stocks, 10% international stocks, 50% bonds and 10% cash investments. The moderate allocation is 35% large-cap stocks, 10% small-cap stocks, 15% international stocks, 35% bonds and 5% cash investments.

We handle the sourcing and active risk management to provide an individually managed bond portfolio of high-quality, income-generating bonds for your clients.

What does living on a fixed income mean, exactly? Living on a fixed income generally applies to older adults who are no longer working and collecting a regular paycheck. Instead, they depend mostly or entirely on fixed payments from sources such as Social Security, pensions, and/or retirement savings.

Fixed-income investments, or bonds as they are commonly known, typically provide a premium above inflation and experience less return volatility compared with shares.

Equity markets offer higher expected returns than fixed-income markets, but they also carry higher risk. 1 Equity market investors are typically more interested in capital appreciation and pursue more aggressive strategies than fixed-income market investors.

Fixed Income ETFs are the same as Bond ETFs. While equity shares, or common stock, gives you ownership of part of a company, a bond is a debt that a company or government can issue/sell to raise money without diluting their ownership or control over the business.