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iShares® iBonds® ETFs:
Build better bond ladders

What are iBonds ETFs?

iBonds exchange-traded funds (“ETFs”) are an innovative suite of bond funds that hold a diversified portfolio of bonds with similar maturity dates. Each ETF provides regular interest payments and distributes a final payout in its stated maturity year, similar to traditional bond laddering strategies. However, the funds’ unique structure is designed to help investors easily build bond ladders with only a handful of funds.

iBonds ETFs are designed to:

iBonds ETFs payout their NAV in their maturity year¹
Mature like a bond
iBonds ETFs payout their NAV in their maturity year1
iBonds ETFs can be bought and sold like a share of stock
Trade like a stock
iBonds ETFs can be bought and sold like a share of stock
iBonds ETFs hold hundreds of bonds from different industries or states
Diversify like a fund
iBonds ETFs hold hundreds of bonds from different industries or states

What can iBonds ETFs do for you?

The unique features of iShares iBonds ETFs can help you more easily build bond ladders, pick points on the yield curve, or even match expected cash flow needs in the future.

  • Build bond ladders: iBonds ETFs make it is easy to create scalable bond ladders with only a few ETFs, rather than trading numerous bonds.
  • Pick points on the yield curve: iBonds ETFs offer diversified exposure to bonds that mature in the calendar year of the fund's name, allowing you to target specific points on the yield curve.
  • Match expected cash flows: iBonds ETFs offer a defined maturity date that can help you have cash on hand when an expense comes due.

See how iBonds ETFs compare

See how iBonds ETFs stack up

For illustrative purposes only.

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iShares iBonds ETF line up

iBonds ETF strategies span several asset classes, including investment grade corporate, high yield corporate and municipal bonds, to help investors build customized portfolios for their specific needs.

YearInvestment Grade CorporateMunicipalHigh Yield & Income Corporate
2019 IBDK IBMH
2020 IBDL IBMI
2021 IBDM IBMJ IBHA
2022 IBDN IBMK IBHB
2023 IBDO IBML IBHC
2024 IBDP IBMM IBHD
2025 IBDQ IBMN IBHE
2026 IBDR IBMO
2027 IBDS IBMP
2028 IBDT IBMQ

See all the current iBonds ETF yields

How do iBonds ETFs work?

  • 1. At time of purchase of the iBonds ETF

    When you are ready to purchase an iBonds ETF, we have tools to help you understand the estimated net acquisition yield of the fund. The estimated net acquisition yield provides a yield estimate, net of fees and market price impact, if the fund is held to maturity.

    On each iBonds ETFs product page, the Estimated Net Acquisition Yield Calculator can provide a yield estimate if you enter a projected market price. This calculator is also built into the iBonds ETF Ladder Tool, which allows you to view multiple funds at once.

    Preview the Estimated Yield of an iBonds ETF

    Estimated net aquisition yield calculator

    For illustrative purposes only.

  • 2. During the holding period of an iBonds ETF

    iBonds ETFs are designed to provide a yield-to-maturity ("YTM") profile comparable to that of the underlying bond portfolio. The funds seek to preserve an investor’s anticipated yield-to-maturity through a combination of monthly distributions and a final end-date distribution.1

    Anticipated investor YTM driven by monthly income distributions and end-date distributions

    Anticipated investor YTM driven by monthly income distributions and end-date distributions

  • 3. When the iBonds ETF matures

    iBonds ETFs terminate in March, September or December of the year in the fund’s name.

    In the final months when the bonds in the portfolio mature, the fund's holdings transition to cash and cash equivalents.

    After all the bonds in the portfolio mature, the ETF is closed and shareholders receive a final distribution equivalent to the fund NAV, after liabilities. This is a similar experience to the principal repayment of an individual bond at maturity.

    As the fund’s holdings mature, the ETF will transition to cash equivalents

    As the fund’s holdings mature, the ETF will transition to cash equivalents

    Since launching in 2010, seven municipal and seven corporate iBonds ETFs have successfully matured and liquidated. All 14 iBonds ETFs provided a total return experience that closely approximated holding a portfolio of individual bonds. Note that the High Yield & Income iBonds ETFs are new as of May 2019 with the first ETF maturing in December 2021.

    Learn more with this iBonds ETF Maturity Case Study.