The iShares Core £ Corp Bond UCITS ETF (SLXX) is an Ireland-domiciled fixed-income ETF managed by BlackRock and traded on the London Stock Exchange.

The fund seeks to track the performance of the iBoxx GBP Liquid Corporates Large Cap Index, a benchmark composed of investment-grade corporate bonds denominated in British pounds.

SLXX provides exposure to the GBP-denominated corporate credit market, covering bonds issued by companies across different countries and sectors. The ETF follows a passive investment strategy and uses physical replication through sampling to track its benchmark. It operates under the UCITS framework and follows a quarterly distributing income policy.

The iBoxx GBP Liquid Corporates Large Cap Index is designed to represent the liquid market for investment-grade corporate bonds denominated in British pounds. 

Composition / Exposure Profile

SLXX primarily provides exposure to corporate bonds across areas such as:

• Banking and financial institutions.

• Insurance.

• Communications.

• Utilities.

• Electric utilities.

• Consumer cyclicals.

• Consumer non-cyclicals.

• Transportation.

Although the securities in the portfolio are denominated in British pounds, issuers are not restricted to the United Kingdom. The fund can therefore hold debt issued by both British and international companies accessing the GBP-denominated corporate bond market.

The portfolio is diversified across hundreds of securities and multiple issuers. As an investment-grade corporate credit strategy, its performance is primarily influenced by sterling interest rates, credit spreads, and changes in issuers' credit quality.

Structure and Costs

SLXX has the British pound as both its fund base currency and share class currency. The ETF has a total expense ratio (TER) of 0.20% per year and uses a physical structure with a sampling methodology. It is domiciled in Ireland, operates under the UCITS framework, is part of iShares plc, and is managed by BlackRock Asset Management Ireland Limited.

SLXX is a distributing share class, with interest and other income generated by its holdings distributed to shareholders quarterly rather than fully reinvested within the fund.

History and Evolution of the ETF

The iShares Core £ Corp Bond UCITS ETF (SLXX) was launched in 2004 to provide diversified exposure to investment-grade corporate bonds denominated in British pounds.

Since its launch, the fund has maintained a passive strategy linked to the iBoxx GBP Liquid Corporates Large Cap Index, providing exposure to bonds issued by companies across different sectors and countries.

Throughout its history, the fund's performance has reflected conditions in the sterling corporate fixed-income market, including changes in UK interest rates, credit spreads, and the perceived creditworthiness of investment-grade issuers.

Additional Information

iShares Core £ Corp Bond UCITS ETF GBP (Dist) (Ireland) is an exchange-traded fund (ETF), with assets under management totaling $1.90 billion.

Over the past 12 months, iShares Core £ Corp Bond UCITS ETF GBP (Dist) recorded a return of 0.01%, with its price trading between $156.92 and $218.31 during the same period.

The ETF is traded under the ticker SLXX.