IBHF ETF

The iShares i-Bonds 2026 Term High Yield and Income ETF offers a 6.7% yield with decreasing risk as it approaches its December 2026 termination date. IBHF's diversified portfolio of U.S. high-yield bonds, predominantly BB-rated, ensures principal return and yield stability despite potential defaults. Term funds like IBHF are advantageous in a soft landing scenario, providing higher yields as Fed rate cuts diminish returns on short-term instruments.

iShares iBonds 2026 Term High Yield and Income ETF is a set-term ETF that tracks a US dollar-denominated, high-yield and income-paying corporate bond index. The fund is well-diversified and has a maturity breakdown focused on the 1 to 2 year range, reducing interest rate risk. The sector breakdown of the fund is heavily weighted towards consumer cyclicals, which may be a concern if a recession occurs. However, the set maturity structure of the fund may help mitigate this risk.

iShares iBonds 2026 Term High Yield and Income ETF has an attractive 7.7% yield, but it is not a long-term investment. The IBHF ETF is an element of a bond ladder ETF series and will be converted to cash in December 2026. Bond ladders in high-yield bonds are for investors who have enough capital to build ladders in safer bonds first.

The iShares iBonds 2026 Term High Yield and Income ETF offers fixed income assets for retirees looking to balance their equity allocation. The ETF invests in U.S. dollar-denominated, fixed-rate, high yield corporate bonds scheduled to mature in 2026. The fund will terminate on December 15, 2026, transitioning its portfolio to cash as its bonds mature. Unlike some Term ETFs, all holdings mature before the Termination date.