Ishares I-Bonds ETFs Investment Guide

Ishares I-Bonds ETFs are a type of investment that can help you grow your money over time.

They offer a unique feature where you can earn interest on your investment, compounded semiannually. This means your investment can grow faster than a traditional savings account.

With IShares I-Bonds ETFs, you can choose from a variety of investment options, including government and corporate bonds. These bonds can provide a relatively stable source of income.

This investment option is suitable for those who want to diversify their portfolio and reduce risk.

iBonds-ETFs are a type of investment that combines the benefits of individual bonds with the flexibility of traditional bond ETFs.

The key feature of iBonds is that they have a fixed maturity date, which allows investors to plan their capital returns with precision.

Investors in iBonds only invest in bonds with a maximum maturity date that matches the ETF's fixed maturity date.

This means that the capital returns from iBonds are almost as predictable as if the bonds were held directly in a portfolio.

iBonds offer a promising portfolio addition, despite the relatively small selection available.

iBonds ETFs are designed to provide a yield-to-maturity (YTM) profile comparable to that of the underlying bond portfolio. They seek to preserve an investor's anticipated yield-to-maturity through a combination of monthly distributions and a final end-date distribution.

The estimated net acquisition yield of an iBonds ETF can be calculated using the Estimated Net Acquisition Yield Calculator, which is built into the iBonds ETF Ladder Tool. This tool allows you to view multiple funds at once and get a yield estimate if you enter a projected market price.

iBonds ETFs terminate in October or December of the year in the fund's name, and in the final months, the fund's holdings transition to cash and cash equivalents. After all the bonds in the portfolio mature, the ETF is closed, and shareholders receive a final distribution equivalent to the fund's NAV, after liabilities.

iBonds ETFs are designed to provide a diversified bond exposure to a desired asset class in a single trade. This allows you to easily access bond markets and pick points in time or match expected cash flow needs in the future.

iBonds have a specified maturity date, which means they distribute the final payout at maturity, similar to traditional bonds.

The unique features of iBonds ETFs make it easy to create scalable bond ladders with only a few ETFs, rather than trading numerous bonds. This can be a huge advantage for investors who want to manage their bond portfolios more efficiently.

Here are some key benefits of iBonds ETFs:

iBonds ETFs are designed to provide a yield-to-maturity profile comparable to that of the underlying bond portfolio.

iBonds ETFs preserve an investor's anticipated yield-to-maturity through a combination of monthly distributions and a final end-date distribution.

The funds seek to maintain a YTM profile comparable to the underlying bond portfolio.

iBonds ETFs terminate in October or December of the year in the fund's name.

In the final months, the bonds in the portfolio mature, and the fund's holdings transition to cash and cash equivalents.

After all the bonds in the portfolio mature, the ETF is closed, and shareholders receive a final distribution equivalent to the fund's net asset value (NAV), after liabilities.

iBonds ETFs have successfully matured and liquidated 38 times since launching in 2010.

These ETFs provided a total return experience that closely approximated holding a portfolio of individual bonds.

The estimated net acquisition yield of an iBonds ETF can be calculated using the Estimated Net Acquisition Yield Calculator on the product page.

This calculator provides a yield estimate, net of fees and market price impact, if the fund is held to maturity.

The iBonds ETF Ladder Tool allows you to view multiple funds at once and includes the Estimated Net Acquisition Yield Calculator.

iShares offers 13 iBonds ETFs, which allow you to invest in various bond segments.

Some iBonds ETFs have both distributing and accumulating variants.

To invest in iShares iBonds ETFs, you'll need to have a brokerage account with a broker that's connected to the exchange where the ETFs are traded. This includes Xetra, Börse Stuttgart, Gettex, or LS Exchange. You can't directly buy iBonds-ETFs without a brokerage account.

There are 13 iBonds-ETFs currently available from iShares, offering various investment options in different bond segments. Some ETFs have both distributing and accumulating variants, giving you flexibility in your investment strategy.

You can find a list of all available iBonds-ETFs on the extraETF ETF search page.

iBonds ETFs are designed to diversify like a fund, holding several bonds from different industries or states.

They offer a diversified bond exposure to a desired asset class in a single trade, which can help you easily access bond markets.

iBonds have a specified maturity date, similar to traditional bonds, and distribute the final payout at maturity.

The unique features of iBonds ETFs make it easy to create scalable bond ladders with only a few ETFs.

Here are some of the key benefits of iBonds ETFs:

By using iBonds ETFs, you can target specific points on the yield curve and match your expected cash flows.

Investing in iBonds can be a great way to earn a fixed return, but it's essential to understand the holding period to make the most of your investment.

iBonds ETFs are designed to provide a yield-to-maturity ("YTM") profile comparable to that of the underlying bond portfolio. The YTM is the rate of return an investor can expect to earn from a bond over its entire term.

The holding period is the time during which you hold onto your iBonds investment. This period can affect the distribution of gains and losses.

iBonds ETFs seek to preserve an investor's anticipated yield-to-maturity through a combination of regular distributions and a final end-date distribution.

To invest in iBonds-ETFs, you'll need a brokerage account that's connected to the relevant stock exchange where the iBonds-ETFs are traded.

You can trade iBonds-ETFs on various stock exchange platforms such as Xetra, Börse Stuttgart, Gettex, or LS Exchange.

To buy iBonds-ETFs, you'll need a brokerage account that's connected to one of these exchanges.

For a low-cost investment, consider buying iBonds-ETFs through a direct bank or a neobroker.

iBonds Ladder ETFs provide a convenient way to access a bond ladder with one ticker. They seek to hold an equal weighted allocation to 5 iBonds ETFs with maturities in the 1–5 year range.

You can easily create a scalable bond ladder with just a few ETFs, rather than trading numerous bonds. This is made possible by iBonds ETFs, which make it easy to build bond ladders.

Here are the four iBonds Ladder ETFs available:

iBonds Ladder ETFs continuously roll to maintain exposure, removing the need to manually reallocate your portfolio every year. They aim to rebalance every June.

iBonds-ETFs offer a planable investment option, allowing you to know exactly when you'll receive your invested capital back, which is a huge advantage.

The fixed term of iBonds-ETFs means you can align your investment with your financial goals, providing clarity and peace of mind.

One of the key benefits of iBonds-ETFs is their diversification, which reduces the risk of your investment by spreading it across a variety of bonds.

You can trade iBonds-ETFs on the stock market just like regular ETFs, giving you flexibility and no restrictions on holding periods.

iBonds-ETFs make it possible to invest in bonds that might be inaccessible to individual investors due to high minimum investment requirements.

Here are the main benefits of iBonds-ETFs:

By choosing iBonds-ETFs, you can enjoy the benefits of a fixed-term investment with the flexibility of a tradable ETF.

iBonds ETFs are subject to the regular capital gains tax, also known as Abgeltungsteuer, which is 25% plus 5.5% solidarity surcharge, totaling 26.375%. This tax applies to gains from selling ETF shares and to distributions.

If you've given your bank a withholding order, you won't be charged tax on up to €1,000 per year (€2,000 for married couples) on your investment income (Sparerpauschbetrag).

At the end of the term, the iBonds ETF is liquidated and dissolved, and investors receive the corresponding market value (NAV x number of shares) credited to their account. This process is automatic and handled by the ETF provider and the custodian bank.

When the iBonds ETF matures, it's a straightforward process. The fund is terminated in December of the year in its name.

In the final months leading up to maturity, the bonds in the portfolio transition to cash and cash equivalents. This ensures a smooth transition for investors.

The ETF is then closed, and shareholders receive a final distribution equivalent to the fund's Net Asset Value (NAV), after liabilities are deducted. This is a key benefit of iBonds ETFs, providing a predictable outcome for investors.

Here's a summary of what happens when an iBonds ETF matures:

It's worth noting that the final distribution is automatically credited to the investor's account by the ETF provider and the custodian bank.

Gewinne aus iBonds-ETFs unterliegen der regulären Kapitalertragsteuer, also 25 Prozent zuzüglich 5,5 Prozent Solidaritätszuschlag, insgesamt also 26,375 Prozent.

Hinzu kommt gegebenenfalls Kirchensteuer.

Auf die Erträge von iBonds-ETFs wird keine Teilfreistellung gewährt, da es sich um „Sonstige Fonds“ handelt.

Anlegerinnen und Anleger, die einen Freistellungsauftrag erteilt haben, werden jährlich bis zu einem Betrag von 1.000 Euro (für Ledige, 2.000 Euro für Verheiratete) keine Steuer berechnet (Sparerpauschbetrag).