iShares Core U.S. Aggregate Bond ETF

Risk Classification: 2 – Conservative

Price per Unit (28 Mar 16): 110.11 [USD]

Dividend Yield: 2.40%

Expense Ratio: 0.08%

Please refer prospectus for detailed risk disclosure

Investment Rationale:

This ETF broadly tracks the US intermediate-term government and agencies market. We don’t expect a sharp sell-off in medium term US treasuries due to our overall bearish outlook and high yield differential with other G3 sovereign markets. Safer investments like US Treasuries and Agencies will do well in this environment.

Fundamental Risk to investment:

This ETF will sharply sell off in the event of a sharp widening in credit spreads in agency credit and/or a sharp sell-off in US Treasuries. Neither are base case expectations.

Details of ETF:

Details on iShares website – For Live data and Prospectus