(IBDU) iShares Trust - iShares - Ratings and Ratios

The iShares iBonds Dec2029 Term Corporate ETF is a fixed-term investment vehicle designed to mature on or around December 15, 2029, at which point it will liquidate and distribute its remaining assets to shareholders. The fund tracks an underlying index comprising U.S. dollar-denominated, investment-grade corporate bonds with maturities between January 1, 2029, and December 15, 2029.

As a target maturity ETF, IBDU provides investors with a predictable investment horizon and a relatively stable credit profile, given its focus on investment-grade corporate bonds. The funds underlying bonds are likely to be issued by high-quality corporate entities, thereby minimizing the risk of default. With a current AUM of $2.6 billion, the fund has a substantial presence in the market, which can contribute to liquidity.

Analyzing the funds technical data, we observe a stable price trend, with the last price being $23.16, slightly above its 20-day, 50-day, and 200-day simple moving averages. The average true range (ATR) indicates a relatively low volatility of 0.38%. Considering the 52-week high and low prices ($23.16 and $21.55, respectively), the fund has demonstrated resilience in its price action.

Combining the technical and fundamental data, we can forecast that IBDU is likely to continue its stable performance until maturity. As the fund approaches its target maturity date, the credit risk is expected to decrease, given the reduction in time to maturity. However, the funds performance will be influenced by the overall interest rate environment and the creditworthiness of the underlying bond issuers. With the current interest rate landscape, we can anticipate a slight decrease in the funds NAV as it approaches maturity, due to the pull-to-par effect. Nevertheless, the funds investment-grade profile and the predictable maturity date make it an attractive option for investors seeking to match their long-term liabilities or manage their investment horizon.

Based on the analysis, our forecast suggests that IBDU will likely maintain its current price level, with a potential slight increase as it approaches maturity, driven by the reduction in credit risk and the pull-to-par effect. Investors can expect a relatively stable source of returns, aligned with the yield of the underlying bonds, until the funds liquidation in December 2029.