At a glance
IGBH charges 0.14% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $222.0M in assets, the 8th largest of that group; it paid 5.3% of its price in distributions over the past 12 months, monthly. Over the past year it returned +4.2% with distributions reinvested, the weakest of those 8 funds; over three years it returned +7.6% a year. At its worst it fell 32.7% in the 2020 crash (S&P 500: 33.7%) and 9.4% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 8 months and 4 months after the lows.
The short version
iShares Interest Rate Hedged Long-Term Corporate Bond ETF (IGBH) holds long-term, investment-grade US corporate bonds, mostly through another iShares fund, and uses interest rate swaps to remove much of their sensitivity to interest rates. What remains is mainly credit risk: returns depend on how corporate borrowers fare more than on rate moves. It pays monthly, with a trailing yield of 5.3% as of October 27, 2026, and its net expense ratio is 0.14%.
Price history
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IGBH +4.2% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| IGBH official prospectus, to Dec 31, 2025 | — | +8.09% | — | +5.39% | +4.96% | — |
| ICE BofA US Broad Market Index index, same period | — | +7.15% | — | -0.42% | +2.01% | — |
| Black Rock Interest Rate Hedged Long Term Corporate Bond Index index, same period | — | +7.92% | — | +5.36% | +4.97% | — |
| IGBH price data to Oct 27, 2026 | +3.5% | +4.2% | +7.6% | +5.2% | +5.1% | +4.7% |
- Over the year to Oct 27, 2026, IGBH returned +4.2%, 8th of 8 among similar funds.
- Its 5-year annualized return was +5.2% and its 10-year +5.1%.
- In the 2020 COVID crash it fell 32.7% and regained its old high 8 months after the low.
- Its worst full calendar year was 2018 (-4.1%); its best was 2023 (+12.0%).
- The deepest fall in its price history was 33.7% (Jan 17, 2020 to Mar 20, 2020), recovered by Dec 4, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +3.5% | — |
| 2025 | +7.9% | +8.09% |
| 2024 | +7.7% | +7.37% |
| 2023 | +12.0% | +12.43% |
| 2022 | -2.9% | -2.98% |
| 2021 | +2.3% | +2.71% |
| 2020 | +1.1% | +0.72% |
| 2019 | +9.6% | +9.32% |
| 2018 | -4.1% | -3.35% |
| 2017 | +9.4% | +9.67% |
| 2016 | +7.6% | +6.98% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 26.7% over that stretch · deepest drop along the way 32.7%, back to its old high 8 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 9.4% over that stretch · deepest drop along the way 9.4%, back to its old high 3.6 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.9500 | |
| 2025 | $1.5300 | -7.8% |
| 2024 | $1.6600 | -5.1% |
| 2023 | $1.7500 | +98.9% |
| 2022 | $0.8800 | +27.1% |
| 2021 | $0.6924 | +13.5% |
| 2020 | $0.6100 | -28.2% |
| 2019 | $0.8500 | -40.9% |
| 2018 | $1.4381 | +88.5% |
| 2017 | $0.7630 | +16.7% |
| 2016 | $0.6539 |
What's inside
As of Jul 31, 2026, the fund held 1 securities; the ten largest made up 92.49% of assets, and 32.54% sat in cash and money-market holdings.
| Fund held | Weight | |
|---|---|---|
| iShares 10+ Year Investment Grade Corporate Bond ETF | 92.49% |
By country
United States 92.49%By asset type
Stocks 92.49%What changed recently
- Over the three months to Jul 31, 2026, investors added a net $51.4M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +1.95%, -0.36%, -0.31%.
How it works
IGBH tracks the BlackRock Interest Rate Hedged Long-Term Corporate Bond Index, built by BlackRock Index Services, an affiliate of the fund's adviser. The index has two parts. The first is a fixed number of shares of the iShares 10+ Year Investment Grade Corporate Bond ETF. That fund holds U.S. dollar bonds from investment-grade (higher-rated) companies with more than ten years left to maturity. It made up about 92.5% of IGBH's net assets as of July 31, 2026.
The second part is the hedge: up to 10 interest rate swaps with different maturities. In each swap, the fund pays a fixed rate and receives a floating one. As a result, the swaps tend to gain value when rates rise, which offsets bond losses. The aim is to minimize duration (a bond's price sensitivity to rate changes) at key points on the yield curve. The index provider rebalances the swap weights daily and replaces the contracts each month. The index also holds cash to reflect the collateral the swaps require. Because of these derivatives, the fund is treated as a commodity pool under federal commodities law.
The hedge works in both directions. When rates fall, the swaps lose value and give back gains the bonds would otherwise deliver. The hedge also isn't designed to offset credit risk, which is the chance that companies weaken or default. The prospectus says credit risk can matter more than interest rates.
What it really costs
- IGBH charges 0.14% a year, versus an average of 0.86% for the similar funds below (1st of 8, cheapest first).
- Of that, 0.35% is the management fee; the rest covers other fund expenses.
- The fee includes a 0.25% waiver from the adviser, which may end.
- Using the prospectus's standard example, $10,000 invested would cost about $14 in the first year and $468 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| IGBH | $14 | $100 | $194 | $468 |
Structure and tax notes
- Invests in other funds rather than directly in stocks or bonds, so its holdings are those funds.
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
It pays monthly income from investment-grade corporate bonds and hedges away most interest rate risk, but it still carries the full credit risk of those bonds.
IGBH could supply monthly income from corporate bonds that react little to interest rates. Its trailing yield was 5.3% as of October 27, 2026, and its net expense ratio is 0.14%. That design held up in 2022, when rising rates hurt most bonds. The fund fell 9.4% at its low, recovered by January 31, 2023, and lost 2.98% for the calendar year. Credit stress is a different story. In the 2020 COVID crash it dropped 32.7% in a month, and the rate hedge is not built to offset that kind of sell-off. It took about eight months to recover. Its worst calendar year was 2018, at -3.35%. It launched in 2015, so it has no 2008 record. Anyone forced to sell during a 2020-style panic could lock in deep losses. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Income-focused investors who want monthly payouts from investment-grade corporate bonds; the trailing yield was 5.3% as of October 27, 2026.
- Investors worried about rising rates: it returned 5.39% a year over five years to December 31, 2025, versus -0.42% for a broad US bond index.
- Cost-conscious holders: the net expense ratio is 0.14% after a fee waiver, about $14 on $10,000 in the first year.
Look elsewhere if
- Anyone wanting a cushion against stock crashes: it fell 32.7% in the 2020 COVID sell-off and took about eight months to recover.
- Investors expecting rates to fall: the swaps lose value when rates drop, giving up the price gains that unhedged long-term bonds would get.
- Those who want simple holdings or large funds: it is a $222 million commodity pool built on one underlying ETF and 313 swap positions.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| IGBH this fund | 0.14% | $222.0M | +4.2% | +7.6% |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
Does IGBH pay monthly dividends?
Yes. IGBH pays distributions monthly. Over the 12 months to October 27, 2026, it paid about $1.30 per share, a trailing yield of 5.3%. The income comes mainly from interest on the long-term investment-grade corporate bonds it holds through the iShares 10+ Year Investment Grade Corporate Bond ETF. Payouts can vary from month to month and are not guaranteed.
What's the difference between IGBH and the iShares 10+ Year Investment Grade Corporate Bond ETF?
IGBH owns that fund, which made up about 92% of its assets as of July 31, 2026, and adds interest rate swaps on top. The underlying fund's long-term bonds swing with interest rates. IGBH's swaps aim to cancel most of that, leaving mainly credit risk. So IGBH may hold up better when rates rise and lag when rates fall. It also carries extra derivatives risk. Its net expense ratio is 0.14%.
Does IGBH protect against rising interest rates?
Largely, yes. That is its purpose. On its swaps it pays a fixed rate and receives a floating one, so the swaps gain value when rates rise and offset losses on the bonds. In 2022, as rates climbed, it lost 2.98%. Over the five years to December 31, 2025, it returned 5.39% a year, versus -0.42% for the ICE BofA US Broad Market Index. The hedge isn't perfect, and it doesn't cover credit risk.
Is IGBH safe in a stock market crash?
Not necessarily. The hedge removes interest rate risk but keeps credit risk, so IGBH can fall sharply when investors fear corporate defaults. In the 2020 COVID crash it dropped 32.7% between February 20 and March 20, 2020, and it lost 17.23% in the first quarter of 2020. It recovered by November 19, 2020, about eight months later. The fund launched in 2015, so it has no record from the 2008 crisis.
What is IGBH's expense ratio?
IGBH's net expense ratio is 0.14%, according to the prospectus filed February 23, 2026. That figure reflects BlackRock waiving 0.25 percentage points of its 0.35% management fee. Under the SEC's standard example, $10,000 earning 5% a year would cost $14 after one year, $100 after three, $194 after five and $468 after ten. Those later figures are higher than 0.14% a year alone would produce, which suggests the example doesn't assume the waiver lasts.