Key stats
About iShares Fallen Angels USD Bond ETF
Expense ratio
0.25%
Home page
Inception date
Jun 14, 2016
ISIN
US46435G4745
FALN invests in corporate fallen angels corporate bonds that previously received an investment-grade rating, but have since been downgraded to sub-investment grade. Eligible securities must be USD-denominated, from developed-market issuers. Constituents are weighted by market value, with a cap of 3% per issuer. Unsurprisingly given the investment-grade origins of its holdings, the fund has a strong bias towards higher-rated BB and B bonds, with longer maturities and greater interest-rate exposure than most funds in the segment. The fallen-angel thesis revolves around total return: the bonds generate income, but also have the potential for capital appreciation if a constituent returns to investment-grade status.
Classification
What's in the fund
Exposure type
Corporate
Stocks4.76%
Communications2.93%
Finance1.83%
Bonds, Cash & Other95.24%
Corporate94.66%
Cash0.58%