ETF Evaluator: iShares® iBonds® 2027 Term HY & Inc ETF () Follow This ETF

iShares® iBonds® 2027 Term HY & Inc ETF Overview

iShares® iBonds® 2027 Term HY & Inc ETF (IBHG) is a passively managed Taxable Bond Target Maturity exchange-traded fund (ETF). iShares launched the ETF in 2021.

The investment seeks to track the investment results of the Bloomberg 2027 Term High Yield and Income Index composed of U.S. dollar-denominated, high yield and other income generating corporate bonds maturing in 2027. The index is composed of U.S. dollar-denominated, taxable, fixed-rate, high yield and BBB or equivalently rated corporate bonds scheduled to mature between January 1, 2027 and December 15, 2027, inclusive. The fund will invest at least 80% of its assets in the component instruments of the index, and it will invest at least 90% of its assets in fixed income securities of the types included in the index.

About iShares® iBonds® 2027 Term HY & Inc ETF (IBHG)

There are 3 members of the management team with an average tenure of 2.36 years: James Mauro (2021), Jonathan Graves (2025) and Marcus Tom (2025). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: Bloomberg US Universal TR USD index with a weighting of 100% and Bloomberg 2027 HY and Income TR USD index with a weighting of 100%. iShares® iBonds® 2027 Term HY & Inc ETF has 225 securities in its portfolio. The top 10 holdings constitute 23.6% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

iShares® iBonds® 2027 Term HY & Inc ETF is part of the Fixed Income global asset class and is within the Taxable Bond ETF group. iShares® iBonds® 2027 Term HY & Inc ETF has 18.2% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 97.9% (79.7% domestic bond, 18.2% foreign bond and 0.0% convertible bond). iShares® iBonds® 2027 Term HY & Inc ETF has 2.1% of the portfolio in cash.

Assets Under Management

The fund has $507 million in total assets, which is below the $585 million average for the Target Maturity category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

IBHG Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The iShares® iBonds® 2027 Term HY & Inc ETF expense ratio is below average compared to funds in the Target Maturity category. iShares® iBonds® 2027 Term HY & Inc ETF has an expense ratio of 0.35%, which is 119% higher than its category average, making the fund expense ratio grade a F. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. iShares® iBonds® 2027 Term HY & Inc ETF has a portfolio turnover rate of 17%, which indicates that it holds its assets around / 0.1 years. By way of comparison, the average portfolio turnover is 40% for the Target Maturity category.

Recently, in the month of July 2026, iShares® iBonds® 2027 Term HY & Inc ETF returned 0.2%, which earned it a grade of B, as the Target Maturity category had an average return of -0.8%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

iShares® iBonds® 2027 Term HY & Inc ETF has a trailing yield of 6.05%, which is above the 5.56% category average. The fund normally distributes its income monthly.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

iShares® iBonds® 2027 Term HY & Inc ETF Grades

Year to date, the ETF has returned 1.5%, 1.3 percentage points better than the category, which translates into a grade of B. The fund has returned 3.9% over the past year (grade of B), 6.9% over the past three years (grade of B) and 3.7% per year over the past five years (grade of A).

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