(IS3F) iShares Bond Interest Rate - Ratings and Ratios

The investment objective of the iShares Corp Bond Interest Rate Hedged UCITS ETF USD (Dist) is to deliver a total return, combining capital and income, aligned with the performance of the Markit iBoxx USD Liquid Investment Grade Interest Rate Hedged Index. The fund achieves this by investing in a portfolio of fixed-income securities that replicate the Markit iBoxx USD Liquid Investment Grade Index, while using US Treasury bond futures to hedge interest rate risk. The hedging strategy involves selling Treasury futures to offset exposure to changes in US Treasury bond yields, aiming to minimize interest rate sensitivity.

Over the next three months, the ETF is expected to trade sideways, with limited upside potential due to its low average daily volume of 1031 shares. The SMA20 and SMA50, currently at 100.02 and 100.19, suggest resistance near the 100 level, while the SMA200 at 94.62 indicates longer-term support. With an ATR of 0.78, volatility is expected to remain subdued. The funds AUM of 254.45M EUR reflects moderate investor interest, but its tracking error is likely to stay minimal due to its passive strategy. The ETFs price of 98.89 suggests a slight discount to its shorter-term moving averages, indicating limited near-term upside.