The bond market has recently experienced a winter of its own, with rising inflation and growing government debts causing a sell off. So this week as contrarians, we turn our attention to long-duration corporate bonds with the iShares 10+ Year Investment Grade Corporate Bond ETF (IGLB), writes Jim Woods, editor of Forecasts & Strategies.
The very conditions that make bond investing seem uncomfortable may also be creating opportunity for those bold enough to pursue it. Yields are elevated, prices have fallen, and at these levels, patience may be an attractive virtue.
(Editor’s Note: Jim will be speaking at the 2026 MoneyShow/TradersEXPO Orlando, which runs Oct. 5-7. Click HERE to register.)
iShares 10-Year Investment Grade Corporate Bond ETF (IGLB)
Launched in December 2009, IGLB seeks to track the ICE BofA 10+ Year US Corporate Index, which focuses on US dollar-denominated, investment-grade corporate bonds with remaining maturities of at least 10 years. The long-duration focus can make IGLB particularly sensitive to interest rate movements, creating more price volatility than many shorter-duration bond funds – but also offering more potential upside to investors if rates eventually move lower.
The ETF offers exposure across a diverse range of industries, including consumer, utilities, communications, technology, energy, and financials. It has over 3,800 holdings, and most of the bonds in its portfolio have 20 years or more remaining in maturity.
IGLB recently featured a yield of 5.4%, net assets of $2.9 billion, and an attractively cheap expense ratio of only 0.04%. For investors willing to take a chance on the unexpected, stick out the cold, and invest longer term, this ETF may deserve a place on their watch list.
