Behind the Ticker: BTOT & BlackRock

Why It Matters

BTO gives advisors a streamlined, comprehensive bond‑market exposure, enhancing income potential and risk monitoring as ETFs become leading indicators of market stress.

Key Takeaways

• Steve’s path: regional bank → Merrill Lynch → BGI acquisition by BlackRock
• Bond ETFs provide real‑time pricing, often outpacing individual bond trades
• ETF market price can signal stress before NAV adjustments
• BTO ETF offers one‑ticker exposure to the entire US bond market
• Advisors see higher income yields now versus a decade ago

Summary

The podcast features Steve, global co‑head of iShares fixed‑income ETFs at BlackRock, discussing his career trajectory and the evolution of bond ETFs. Starting in regional banking and moving through Merrill Lynch’s structured‑product desk, he joined BGI just before its 2009 acquisition by BlackRock, witnessing a seamless integration that reshaped the firm’s messaging around active versus index solutions.

Steve highlights that bond ETFs deliver continuous, exchange‑traded pricing, dramatically improving price discovery compared with over‑the‑counter bonds. During market stress—exemplified by the 2020 pandemic—ETF trade volumes surged while underlying securities traded sparsely, allowing the ETF’s market price to act as an early warning indicator before NAV catches up.

The conversation turns to the newly launched BTO (iShares Total US Fixed Income Market) ETF, introduced in December 2025. Designed to mirror the Bloomberg US Total Fixed Income Index, BTO consolidates treasuries, investment‑grade, high‑yield, loans, TIPS, and other segments into a single ticker, filling a gap that equity markets have long enjoyed with total‑market funds.

For advisors, BTO simplifies portfolio construction, offering a one‑stop exposure to the broad bond universe while preserving the ability to layer active strategies. With yields now above 4%—the highest in two decades—the product aligns with the renewed focus on income generation amid a volatile rate environment.

Original Description

In this episode, host Brad Roth of Thor Funds sits down with Steve Laipply, Global Co-Head of iShares Fixed Income ETFs at BlackRock, to discuss the evolution of the bond market and the launch of a potential game-changer: BTOT (iShares Total US Fixed Income Market ETF).

Steve oversees roughly a trillion dollars in assets, but his journey into ETFs started with a simple moment of frustration trying to buy a single Treasury note in his personal account. Two decades later, he’s at the forefront of the fixed-income evolution.

This conversation dives deep into why the traditional Aggregate Bond Index might be leaving investors behind and how BTOT aims to solve that by capturing the entire U.S. bond market in a single ticker.

In this discussion, Laipply explains his groundbreaking research on why bond ETFs like LQD actually provide better price discovery than the underlying OTC market during times of crisis. They also cover how and why BTOT came to be, where it's beneficial in portfolios and the anchor it can provide for other active, alpha-seeking strategies, and how it’s held up since launch late last year.

About Steve Laipply:

Steve is the Global Co-Head of iShares Fixed Income ETFs at BlackRock. He joined the firm (then BGI) after roles at Wachovia and Merrill Lynch. Outside the office, he’s a martial artist of 20 years who values intellectual curiosity above all.

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Visit our website: https://www.etf.com/sections/podcasts/behind-ticker-btot-blackrock

Learn more about Brad Roth and Thor Funds: https://www.thorft.com/funds

Disclosures: This video is for informational purposes only and does not constitute investment advice. Yield and duration figures are subject to market change.