The iShares iBonds Oct 2032 Term TIPS ETF (OTCMKTS:IBII) is a fixed-maturity exchange-traded fund managed by BlackRock through its iShares platform. This fund seeks to track the performance of U.S. Treasury Inflation-Protected Securities (TIPS) that mature in October 2032. By focusing on a single maturity date, IBII offers investors a defined endpoint and a predictable cash flow profile, making it suitable for those seeking inflation protection alongside a clear investment horizon.
IBII invests primarily in U.S. government-issued inflation-linked bonds, which adjust their principal value in response to changes in the Consumer Price Index. The ETF is designed to replicate the Bloomberg U.S. Treasury Inflation-Linked Bond Index® (Series-L), holding a portfolio of securities that mature in the target month. Throughout its term, the fund distributes accrued interest on a monthly basis, providing a steady income stream that reflects current inflation adjustments.
Launched by BlackRock, a global asset manager with a long track record in fixed income and ETF management, IBII leverages the firm’s expertise in indexing, risk management, and ETF operations. While the ETF itself is relatively new, it benefits from BlackRock’s broader infrastructure, including portfolio construction, trading capabilities, and regulatory compliance. It is available to individual and institutional investors in the United States and can be purchased through most brokerage platforms that offer OTC-traded securities.
IBII’s predefined maturity structure distinguishes it from open-ended TIPS funds by automatically terminating on the maturity date, at which point investors receive the final redemption proceeds. This feature simplifies planning for investors who wish to align the fund’s life span with specific future liabilities or investment goals. As with all U.S. Treasury securities, the fund’s credit risk is backed by the full faith and credit of the U.S. government, while its inflation-linked nature offers a hedge against rising consumer prices.
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