Bond ladder using ETFs

[torata]

iShares now have a range of bond-holding ETFs with specific cut-off dates to enable people to make bond ladders using ETFs (note, of corporate bonds) rather than individual bonds.

https://www.ishares.com/uk/individual/en/products/etf-investments#/?productView=etf&fac=43549%7C43563%7C43566%7C43573%7C43588%7C43774%7C43775%7COTHR43515&pageNumber=1&sortColumn=totalFundSizeInMillions&sortDirection=desc&dataView=keyFacts&keyFacts=all&fst=50587

The current selection of ETFs runs up to 2028. Euro and USD denominated.

torata

[GoSeigen]

iShares now have a range of bond-holding ETFs with specific cut-off dates to enable people to make bond ladders using ETFs (note, of corporate bonds) rather than individual bonds.

OMG We must be approaching peak ETF at some point soon. Next there will be a range of individual-year gilt ETFs. Ridiculous!


Does anyone agree that this is a subtle hint to reduce exposure to fixed interest?


GS

[kempiejon]

I had heard it as JP Morgan but a quick google say's it's Joseph P Kennedy Snr (JFK's dad) who told the tale of the shoe shine boy giving stock tips as the time to get out. Whether that's a read across to the top of the ETF cycle of that of corporate bonds I'd not speculate.

[EthicsGradient]

This doesn't seem that strange or indicative of danger to me. A collective investment, spreading the risk across many corporate bonds in a way an average individual can't, with a fixed end date so that the eventual income and gain is pretty predictable. I note that they use bonds that all mature in a calendar year, so as that starts, they put the money into government securities, until the end of the year when it's all redeemed (so for the "2025" one, that'll be an appreciable part of the (hopeful) gain).

Many people have seen investing in bonds as the "safe" part of investing, and then found that unexpected interest rate rises hit "normal" bond funds badly. This ought to be less prone to that.