(IBHH) iShares iBonds 2028 Term - Ratings and Ratios

The iShares iBonds 2028 Term High Yield and Income ETF (BATS:IBHH) tracks an index of U.S.-dollar-denominated, taxable, fixed-rate corporate bonds that are rated high-yield or BBB (or equivalent) and have maturities strictly between January 1 2028 and December 15 2028. To fully replicate the index, the fund may also hold bonds issued by non-U.S. entities, and it is classified as a non-diversified ETF.

As of the most recent data (Q3 2024), the fund’s weighted average maturity is 2.9 years, and its effective duration sits around 2.5, reflecting modest interest-rate sensitivity. The current yield-to-worst is approximately 5.8%, which is roughly 1.2 percentage points above the Bloomberg U.S. Treasury 2-year benchmark, indicating a credit spread premium that compensates investors for higher default risk.

Key macro drivers for IBHH’s performance include the Federal Reserve’s policy trajectory and the broader economic cycle. A tightening cycle that pushes the Fed funds rate above 5% would likely compress high-yield spreads, while a recession-induced slowdown in corporate earnings could widen defaults and widen spreads, especially in cyclical sectors such as energy and consumer discretionary, which together account for about 30% of the portfolio’s weight.

Given its non-diversified status, concentration risk is a material consideration; the top five issuers represent roughly 18% of assets, so investors should monitor issuer-specific credit developments closely.

For a deeper, data-driven assessment of IBHH’s risk-adjusted return profile, you might explore the ValueRay platform’s interactive credit-spread analytics.