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Investors can now better understand the target maturities of BBB-rated corporate bonds, which are consistently outperforming among U.S. investment-grade stocks.1
larkspur, california, January 25, 2024 /PRNewswire/ — BondBloxx Investment Management today proudly announces the launch of three BondBloxx investment grade corporate bond ETFs.
These first-of-its-kind ETFs offer more precise 1-5, 5-10, and 10+ year time horizons within the BBB-rated corporate bond category, which consistently outperforms the U.S. investment-grade bond industry. Targeted at maturity.1 While there are existing funds that target a range of maturities within investment grade corporate bonds, these funds offer new opportunities by allowing investors to target BBB rated corporate bonds within a variety of maturity ranges. provides a high level of accuracy.
“Investors who own a broad range of investment-grade ETFs across a variety of maturity categories can use these new BondBloxx ETFs to target BBB-rated bonds and take advantage of the higher coupons of this attractive segment of the investment-grade corporate bond market. Now you can benefit from it,” said BondBloxx co-founder. tony kelly. Over the past 20 years, BBB-rated corporate bonds have outperformed the broader investment-grade corporate bond universe by more than 50 basis points annually, with no increase in default risk.2
Current BBB attractive yields, when combined with the still resilient fundamentals of the credit rating category, suggest that BBB exposure has the potential to continue to improve fixed income performance relative to all segments of US aggregates. , the BondBloxx team added. Several economic indicators in the US remain strong, and yields are at a 13-year high.3 It also supports the strong credit fundamentals expected for BBB-rated corporate bonds in 2024.
“Investment-grade companies continue to be a hot area for investors, and BBB offers a unique opportunity to realize potential outperformance.” joan bianco, Investment Strategist at BondBloxx. “However, until now investors have had fairly limited portfolio construction options when adding targeted BBB exposure. We’re excited to innovate and solve that problem for our clients and advisors.”
“All we do is fixed income,” Kelly added. “We remain steadfast in our mission to provide precision tools that help investors and advisors access opportunities in the fixed income markets, and these new ETFs are an exciting addition to our fast-growing family of funds. This will be an additional addition.”
For more information about BondBloxx, please visit BondBloxxETF.com.
About BondBloxx Investment Management Corporation
BondBloxx Investment Management Corporation (“BondBloxx”) is the first ETF issuer focused solely on fixed income, offering broad exposure to U.S. government bonds, investment grade corporate bonds, high-yield bonds, and emerging market debt. To learn more about BondBloxx’s bond-first mission, please visit: BondBloxxETF.com.For press inquiries, please contact us by email. [email protected]
BondBloxx is a registered investment advisor and does business only in states in which it is properly registered or exempt or exempt from registration requirements.
Please consider the Fund’s investment objectives, risks, charges, and expenses carefully before investing. This and other information can be found in the fund’s prospectus or, if available, the summary prospectus, which can be obtained by visiting bondbloxxetf.com. Please read the prospectus carefully before investing.
Investments involve risks such as possible loss of principal. Bond investments are subject to interest rate risk. Its value typically decreases as interest rates rise. Bond investments are also subject to credit risk, the risk that the issuer of a bond will not make timely payments of interest and principal, or that the price of that bond will decline due to negative perceptions of the issuer’s ability to pay interest and principal. exposed. decline. Investing in mortgage loans and asset-backed securities involves interest rate, credit, valuation, extension and liquidity risks and the risk that payments on the underlying assets will be delayed, prepaid, subordinated or defaulted. Investment grade bonds have a rating of BBB or higher. High yield bonds are rated BB+ or lower. Bonds rated BBB typically have a higher risk of downgrades than other investment-grade bonds, particularly during economic downturns or periods of significant interest rate increases. If such bonds are downgraded, such bonds may be downgraded from the investment grade bond world to the high yield (or “junk” bond) world, which may adversely affect their liquidity and value.
Nothing in this statement is intended as an offer to buy, sell, or otherwise deal in (or an invitation to make) any investment funds or strategies or other securities or financial instruments mentioned on the website. There is no, and it does not constitute. , or to provide investment services or advice in any jurisdiction.
Distributor: Foreside Fund Services, LLC
1 Source: Bloomberg, as of December 31, 2023. Based on a 1, 3, 5, 10 comparison of the ICE BofA BBB US Corporate Index to the ICE BofA US Broad Market Index, ICE BofA US Treasury Index, Bloomberg US MBS Index, and Bloomberg US ABS Index. -Year annualized return. Past performance is not indicative of future results.
2 Source: Bloomberg, ICE Data Services based on 20-year annual revenue from 2003 to 2023. Past performance is not indicative of future results. You cannot invest directly in an index.
3 Source: Bloomberg, as of December 31, 2023.
SOURCE BondBloxx Investment Management Corporation
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