iShares ILB ETF (ASX:ILB)
The iShares ILB ETF provides investors with exposure to the performance of a segment of the Australian bond market comprised of inflation-linked fixed income securities.
What does the ILB invest in?
ILB aims to track the performance of the Bloomberg AusBond Inflation Government 0+ Yr Index (before fees and expenses) which is a rules-based, market value-weighted index that includes bonds maturing in 0+ years. Most of the bonds within ILB are treasury bonds, with a smaller allocation to government-related bonds.
What do investors use ILB for?
Investors could use the ILB ETF to diversify an existing portfolio and gain exposure to Australian bonds with protection from inflation. Additionally, ILB could be used to create a regular income stream from the quarterly distributions offered by this ETF. The value of inflation-linked bonds are periodically adjusted according to the rate of inflation so as to provide investors with a level of protection against inflation.
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