FALN — iShares Fallen Angels USD Bond ETF

FALN Price Performance — Growth of $10,000

Value of a $10,000 investment in FALN over time, compared with SPY. Both lines are rebased to $10,000 on the first shared date. Based on total returns — prices are adjusted for dividends and splits, so this assumes distributions were reinvested. Hover or tap the chart for exact values.

FALN Drawdown

The "underwater" chart: FALN's decline from its highest prior value at each point in time. It shows how deep past losses ran and how long the fund took to recover to break-even.

Overview

The iShares Fallen Angels USD Bond ETF (FALN) operates within the US Bonds - Corporate category, which ETFValuer currently tracks with 17 funds. Issued by iShares, this fund holds an asset base of $1.63 billion and trades at a price of $26.86. It carries an overall rank of #284 out of 458 tracked ETFs across all categories and has received an ETFValuer grade of C with a score of 57.2 out of 100. The fund charges an expense ratio of 0.25% while offering a dividend yield of 6.41%. The combination of a mid-tier rank and a substantial asset size suggests a moderate level of investor adoption relative to the broader universe of tracked funds. Its position in the category places it below the median rank, reflecting its specific standing among the 17 peers in its sector.

Short-term performance shows negative returns, with the fund down 0.46% over one day, 0.96% over one week, and 0.59% over one month. However, the trend shifts to positive territory over longer horizons, recording a 0.24% gain over three months and 0.64% over six months. Year-to-date returns stand at +1.52%, while the one-year return reaches +5.81%. The three-year return period demonstrates significant accumulation, totaling +27.62%. This pattern indicates a divergence where recent short-term declines contrast with sustained positive growth over the past year and three years. The acceleration from negative short-term figures to positive multi-year results highlights a recovery trajectory following recent dips.

The fund is assigned a Very Low volatility label and maintains a beta of 0.80, indicating price movements that are generally less sensitive than the broader market. A Sharpe ratio of 0.18 suggests that the risk-adjusted returns generated have been relatively modest compared to the volatility incurred. The maximum drawdown recorded is -5.92%, which represents the largest peak-to-trough decline experienced by the fund. This combination of low volatility and a beta below 1.0 implies the fund tends to experience smaller swings than the market in both up and down conditions. However, the low Sharpe ratio indicates that the returns achieved during these periods have not been particularly high relative to the risk taken. The limited drawdown size further supports the characterization of the fund as having contained downside risk during market stress.

AI-generated summary based on the data on this page.

FALN Top Holdings

Holdings as of 2026-04-30 per the fund's most recent SEC N-PORT-P filing. Top 10 holdings make up 30.6% of net assets — a rough gauge of concentration risk (the higher this figure, the more the fund's return depends on a handful of names). To see how FALN's holdings overlap with other ETFs you own or are considering, check the Stock Overlap tool.

Which Funds Overlap With FALN

Holding two funds that own the same companies adds cost and complexity without adding much diversification. These tracked ETFs share the most names with FALN's top 10 — LQD overlaps most, holding 2 of the same companies as FALN's top 10 (15.9% of FALN's assets).

Compares the top 10 reported holdings of each fund, so it's a floor on true overlap — two S&P 500 trackers overlap ~100% even when only 10 names are listed. Use the Stock Overlap tool to search by individual company.

Market Backdrop

10-Year Treasury Yield: 4.71% (as of 2026-07-23) — The yield on 10-year US Treasury bonds — the standard "risk-free rate" benchmark used to contextualize this fund’s Sharpe ratio and returns.

CBOE Volatility Index (VIX): 18.70 (as of 2026-07-23) — A real-time gauge of expected S&P 500 volatility over the next 30 days — useful context for this fund’s own volatility label.

Federal Funds Rate: 3.63% (as of 2026-06-01) — The Federal Reserve’s target policy rate, which anchors short-term borrowing costs across the economy.

High-Yield Credit Spread: 2.77% (as of 2026-07-23) — The extra yield investors demand to hold high-yield corporate bonds over Treasuries — a real-time gauge of credit risk appetite relevant to this fund’s holdings.

FALN Liquidity, Domicile & Tax Treatment

Liquidity: Quoted bid/ask spread is 0.22% and average daily volume is 967K/day. Tighter spreads and higher volume mean lower round-trip trading costs; this is a live-market snapshot and can widen during volatile sessions. AUM of $1.63B provides ample scale, supporting tight spreads and issuer commitment to keep the fund open.

Domicile & tax treatment: FALN is a US-domiciled, SEC-registered ('40 Act) exchange-traded fund. Dividends and capital gains distributions are reported to US investors on Form 1099-DIV, and the fund is not subject to the PFIC reporting or UCITS-specific rules that apply to Irish- or Luxembourg-domiciled funds. Non-US investors should note that US-domiciled ETFs are generally subject to 30% US withholding tax on dividends (unless reduced by treaty) and to US estate tax exposure on the position — Irish-domiciled UCITS ETFs tracking the same index often avoid both, which is why non-US residents frequently prefer the UCITS equivalent where one exists. This is general information, not tax advice — consult a tax professional for your situation.

FALN Performance History

How FALN Compares to Other US Bonds - Corporate ETFs