iShares IHCB ETF (ASX:IHCB)
The iShares IHCB ETF provides investors with access to the performance of investment-grade corporate bonds across global markets and sectors, hedged into Australian dollars. This is a relatively low-cost way to get exposure to global investment-grade corporate bonds in a single fund.
What does the IHCB invest in?
IHCB aims to provide investors with the performance of the Bloomberg Barclays Global Aggregate Corporate Bond Index (AUD Hedged), before fees and expenses. This index is designed to capture the performance of the global investment-grade corporate bond market by holding corporate bonds from a number of different countries (particularly the US) and sectors (such as banking and communications). Most of the bonds within this ETF are assigned a credit quality rating of A or BBB. The issuers of these corporate bonds include well-known names such as JPMorgan Chase, Bank of America and AT&T.
What do investors use IHCB for?
Investors could use the IHCB ETF to diversify an existing portfolio and gain exposure to global corporate bonds while potentially minimising the impact of Australian dollar volatility on investment returns. Additionally, IHCB could be used to create a regular income stream from the tri-annual distributions offered by this ETF. Bonds can be used in a portfolio to seek stability and generate income.
Best ETFs warnings
The following warnings are applied by our team, based on quantitative metrics and our internal methodology. These risks are not exhaustive and therefore they should not be relied upon. Always read the PDS of the function and speak to your financial adviser before acting on this information.
Looking for something better?
This brilliant (and free!) report is issued by Best ETFs Australia, a division of The Rask Group Pty Ltd. It is not a recommendation.
Speak to a financial professional before relying on this information and please read our Financial Services Guide (FSG).