iShares Dec 2023 Corporate Bond ETF for 2024 downpayment

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ShadowCat
Posts: 112
Joined: Thu Nov 05, 2015 5:02 pm

iShares Dec 2023 Corporate Bond ETF for 2024 downpayment

Post by ShadowCat »

We're tentatively thinking of purchasing a home in summer of 2024. I discovered that Blackrock offers an interesting term limited corporate bond ETF called IBDO:

https://www.ishares.com/us/products/272 ... porate-etf

The ETF only invests in corporate bonds that terminate before December 15th, 2023. The ETF then expires, the fund liquidated, and all assets are distributed to the shareholders.

What do you guys think of me throwing my entire downpayment into this ETF? Seems safe enough, no?
runninginvestor
Posts: 608
Joined: Tue Sep 08, 2020 8:00 pm

Re: iShares Dec 2023 Corporate Bond ETF for 2024 downpayment

Post by runninginvestor »

The SEC yield is currently 0.41%, you can get a no penalty CD at ally for 0.5% with no interest rate risk, FDIC protection, and the option to cancel the CD and get another I'd rates rise.

For just 0.41% sec yield, in my opinion there are better options in regards to interest rate risk, protection, and possibly girls. At that time frame you could even explore ibonds for 2021, 2022, and early 2023 and just take the 3 month interest penalty hit for redeeming between 1-5 years.
Topic Author
ShadowCat
Posts: 112
Joined: Thu Nov 05, 2015 5:02 pm

Re: iShares Dec 2023 Corporate Bond ETF for 2024 downpayment

Post by ShadowCat »

That's fair, at 0.41% I suppose there's no reason to not just use a no penalty CD. Fair point runninginvestor.
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