iShares iBonds 2026 Term High Yield and Income ETF

IBHF tracks a market-value-weighted index of USD-denominated, high yield and BBB-rated corporate bonds maturing in 2026. The fund will terminate in December 2026.

Buying bonds directly is the simplest way to schedule a fixed amount of dollars to be paid to you on a fixed future date. While most bond ETFs have no specific maturity date, there are three suites of fixed maturity ETFs from Invesco, iShares, and State Street. Here I chart the past performance of two 2024 Invesco BulletShares ETFs, showing how closely their total returns could have been expected in advance.

IBHF: A Fixed-Maturity ETF I Love

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.

IBHF: Fight The Fed With This Term Fund, 6.7% Yield

Barings Global Short Duration High Yield Fund

Horizon Technology Finance

SPDR Bloomberg High Yield Bond ETF

Oxford Square Capital

FolioBeyond Rising Rates ETF

PGIM Shrt Duratin Hgh Yld Opprtnts Fund

SPDR Bloomberg Short Term High Yield Bond ETF

Many investors oversimplify the investment process with respect to duration by thinking about the concept on a single spectrum. They also focus overly on today's yield rather than considering reinvestment risk as well as capital gains consequences. We discuss two of these investment process shortcomings and highlight a number of attractive holdings in the context of the current market environment.

Finding The Sweetspot Across The Yield Curve At 7-9% Yields

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.

IBHF: A Different Spin On High Yield Investing

Invesco BulletShares 2025 Corporate Bond ETF

iShares iBonds Dec 2024 Term Treasury ETF

To get the most from your bond investments, consider funds that let you lock in an interest rate and maturity date to match your specific goals.

Bonds Are Looking Up. These ETFs Make It Easier.

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.

IBHF: 7.7% Yield To Be Part Of A Bond Ladder

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.

IBHF Or 3-YR CD: I've Decided Which Is Better

iShares iBonds 2026 Term High Yield and Income ETF is a fixed term bond fund with a roughly 2-year duration. The portfolio predominantly holds bonds that mature in 2026, with a focus on BB- and B-rated bonds. With high yield credit spreads currently tighter than average, I recommend investors be patient and wait for a better entry.

IBHF: Waiting For An Entry Into 2026 High Yield Bonds

Credit Suisse Asset Management Income Fund

Allspring Income Opportunities Fund

Western Asset Diversified Income Fund

High-yield corporate bond yields have nearly doubled this year on the back of the rise in Treasury yields and a back-up in credit spreads. At current yields, we find corporate bonds attractive in an environment of low default rates, strong macro indicators and decent corporate fundamentals.

Why We Are Buying 7-10% Yielding Corporate Credit

Bond exchange traded funds with defined maturity dates have a strong place in a fixed income investor's portfolio. Under its iShares brand, BlackRock gives investors just that with its latest iShares iBonds 2026 Term High Yield and Income ETF (IBHF).

Have You Considered a Bond-Laddering Investment Strategy?

Looking at the current trajectory for iShares, the iShares iBonds suite has now crossed $10 billion in AUM and is projected to grow to $20 billion in the next five years. On Thursday, BlackRock announced the launch of the iShares iBonds 2026 Term High Yield and Income ETF (IBHF).

News for iShares iBonds 2026 Term High Yield and Income ETF ETF (IBHF)