IGBH provides exposure to long-term US investment grade corporate bonds by investing in an index that holds the iShares 10+ Year Investment Grade Corporate Bond ETF (IGLB), while simultaneously attempting to hedge exposure to its interest rate risk through a series of up to 10 interest rate swap contracts with different maturities. The index includes a 5% cash position as collateral for the swap contracts. IGBH targets to maintain a weighted average maturity that is greater than ten years. The fund aims to track the interest rate hedging component of the index through short positions in US Treasury futures contracts and interest rate swaps. Prior to Dec. 1, 2021, the fund is actively-managed holding the ETF IGLB and using the same strategy of hedging interest rate risk.
