BlackRock launches iShares Global Government Bond USD Hedged Active ETF to provide diversified fixed-income exposure

From Yahoo Finance: 2025-06-26 14:00:00

BlackRock launched the iShares Global Government Bond USD Hedged Active ETF (GGOV) to provide investors with exposure to a diversified portfolio of government bonds. GGOV uses a currency hedge on non-U.S. bonds to raise yield when U.S. policy rates are higher, managed by BlackRock’s Tactical Asset Allocation team with a 0.39% expense ratio.

Historically, USD-hedged global government bonds have offered higher yields with lower volatility compared to U.S.-only bond indices. GGOV aims to provide diversified global fixed-income exposure with a foreign exchange hedge, appealing to investors with a home bias. BlackRock believes this strategy can help mitigate risks related to government deficits and inflation.

BlackRock’s iShares global fixed-income ETF business reached $1 trillion in September 2024, as investors turned to bonds due to the Federal Reserve’s rate hikes. GGOV is part of BlackRock’s $52 billion-plus U.S. active ETF platform, with the firm predicting fixed-income ETFs to reach $6 trillion in assets under management by 2030.

The world’s largest asset manager, BlackRock, expects fixed-income ETFs to reach $6 trillion in assets under management by 2030. The launch of GGOV aims to provide investors with diversified global fixed-income exposure, offering potential benefits in a changing market environment.

Read more: BlackRock Launches New Global Government Bond Hedged ETF