What is IUSB?
IUSB is an exchange-traded fund (ETF) offered by BlackRock's iShares, designed to track the performance of the Bloomberg U.S. Universal Index. This index includes U.S. investment-grade bonds across different sectors, including U.S. Treasury bonds, corporate bonds, and mortgage-backed securities. The ETF aims to provide a diversified approach to bond investing, with a mix of short-, intermediate-, and long-term bonds, thus catering to a wide range of investment preferences.
Investment Strategy
The IUSB ETF focuses on a diversified selection of bonds, making it a more balanced option for investors who seek stable returns with lower risk compared to equities. The ETF's bond portfolio includes U.S. government securities, which are considered low-risk, along with investment-grade corporate bonds that offer higher yields.
For investors seeking to protect their portfolio from market volatility, IUSB can provide a reliable source of income through regular interest payments. Additionally, by holding a mix of bonds with varying maturities, the ETF provides a level of protection against interest rate fluctuations, which is an essential consideration for bond investors. shutdown123