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With an Asset-Backed Debt ETF, the Bet Is If You Can Pay What You Owe

  • BlackRock plans new fund that invests in consumer-loan ABS
  • Company already runs ETFs that buy mortgage-backed debt

Worried about paying off your university education, new car or shopping habit? Exchange-traded fund investors soon could be betting on that too.

BlackRock Inc.’s planned iShares Consumer Asset-Backed Securities ETF will invest in notes supported by consumer loans, such as student debt and credit cards, according to a regulatory filing on Friday. If approved, it will be the first ETF to target the ABS market.