This is a defined-maturity ETF that holds US Treasuries maturing between January 1, 2027 and December 15, 2027. The portfolio is liquidated at maturity, and principal and accumulated interest are returned to investors, so the ETF delivers the effect of holding individual bonds directly.

It suits investors who need funds at a specific point in time or who want to build a bond ladder strategy.

It is a passively managed (index-tracking) ETF launched by BlackRock (iShares) in 2020.

It holds only US Treasuries maturing in December 2027, providing a defined-maturity structure. As the maturity date approaches, the share of cash in the portfolio rises, and at final liquidation, principal and interest are distributed to investors.

• Defined-maturity structure allows funds to be managed around a target date
• Holds only US Treasuries, offering interest rate exposure without credit risk

Assets under management (AUM) stand at $2.4B, and the expense ratio is 0.07% per year.

Unlike conventional bond ETFs, a defined-maturity ETF is liquidated at a specific point in time, so investors who hold without selling early can anticipate the cash flow at maturity.

The yield to maturity of the Treasuries held varies with the interest rate level, and as the maturity date nears, duration shortens and sensitivity to rate changes declines. Because the fund is based on US Treasuries, the direction of interest rates, rather than credit risk, is the main driver of returns.

Inflows have been steady, supported by demand for target-date bond strategies and bond ladder construction. Depending on short- and medium-term rate outlooks, money sometimes shifts between ETFs with adjacent maturities, and interest tends to grow when demand for US Treasuries as a safe asset rises.

The defined-maturity structure and the credit stability of US Treasuries are its strengths, but selling early carries the potential for losses from changes in market interest rates.

Comparable products in the same category shown in the table include GOVT (US Treasuries of all maturities), SHV (ultra-short-term Treasuries) and GBIL (short-term Treasury ETF), which are continuously managed without a fixed maturity. If a defined maturity is unnecessary and you want broad Treasury exposure, GOVT may be an alternative, and if you prefer ultra-short-term liquidity, SHV or GBIL may be. Meanwhile, if you want emerging market bond exposure, you can also consider EMB, and if the goal is more efficient cash management, BOXX is worth reviewing as well. Adjacent maturity series include IBTG (matures 2026), IBTI (matures 2028) and IBTJ (matures 2029), which can be used to build a bond ladder.

Here are the points to review before investing in IBTH. It is important to fully understand the characteristics of a defined-maturity structure and to confirm in advance that your holding period plan and the timing of your funding needs match the maturity schedule.

In a rising rate environment, selling before maturity can result in a loss of principal. Holding to maturity eliminates this risk, but exchange rate fluctuations affect returns throughout the holding period.

For investors who need funds in December 2027 or who want to build a bond ladder strategy, the fund offers a defined-maturity structure based on US Treasuries. If you plan to hold until maturity, it is useful for managing interest rate risk, and using it together with adjacent maturity series can enhance diversification.