BlackRock has launched the iShares Total USD Fixed Income Market ETF, designed to capture the full taxable U.S. bond market rather than stopping at the traditional Aggregate benchmark. The new ETF tracks a broader index that meaningfully expands exposure beyond investment-grade bonds to include areas such as high yield, TIPS, floating-rate debt, and bank loans. 

Compared with core bond funds that focus mainly on investment-grade securities, this approach aims to give investors a more complete “own the market” allocation within fixed income. 

The structure may appeal to passive investors who want comprehensive diversification without making active sector bets. Ultimately, the fund positions itself as a next-step core holding for investors seeking total bond market exposure rather than a narrower definition of core fixed income.

Finsum: Broader exposure also introduces the potential for slightly higher income, though it comes with added credit and structural risk.