iShares unveils short-dated corporate bond ETF

The iShares Markit iBoxx £ Corporate Bond 1-5 is physically-backed, investing in the underlying bonds comprising the Markit index. The fund is optimised, meaning it selectively invests in the corporate bonds to enhance liquidity. Axel Lomholt, head of product development for iShares EMEA, says: "With UK interest rates likely to rise from their all time low this year, an increasing number of investors are looking to manage their exposure to interest rate risk." He says investors can use the ETF to lower the overall duration of their fixed income portfolio in a rising yield environme...