Exchange traded funds that track bond markets have endured a torrid time this year as galloping inflation has forced central banks to raise interest rates aggressively, in an effort to restore price stability. Investors have been warned to expect more increases in interest rates in the US, UK and EU as increased volatility in global energy and food prices — resulting from Russia’s war in Ukraine — creates greater uncertainty over the future path for inflation. Meanwhile, widespread losses have been registered across some of the world’s most popular fixed income ETFs.
Just days after Russia launched a full-scale invasion of Ukraine on February 24, stock exchanges around the world called time on the trading of Russia-focused exchange traded funds. The world’s biggest providers of ETFs took the suspensions in their stride — at least on the face of it — immediately backing the closures. Industry leader BlackRock announced that it “strongly supported” the shutdowns.
NEW YORK, September 30, 2022--BlackRock announced today the planned termination of the iShares iBonds Dec 2022 Term Muni Bond ETF (NYSE: IBMK).