Bond Ladders Just Got Easier to Manage

    Yield Chart

     

    iBonds ETFs are investment grade bond portfolios that investors can use to build diversified, laddered bond portfolios more easily than they can with individual bonds.

    • Create scalable fixed income portfolios Track a few ETFs rather than multiple bonds, making it easier to build and monitor laddered portfolios.
    • Efficiently diversify fixed income holdings Get a mix of investment grade bonds in every iBonds ETF.
    • Access the bond market more easily iBonds ETFs trade on exchanges, like a stock, so you don’t have to deal with over-the-counter purchases and sales.
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    Corp IBDF IBDJ IBDH IBDK IBDL IBDM IBDN IBDO IBDP IBDQ
    Muni IBME IBMF IBMG IBMH IBMI IBMJ IBMK

    See the current iBonds yields.

    During the Life of an iBonds ETF

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

    You can always see the current yield to maturity of an iBonds portfolio on the fund's product page.

    Anticipated Investor YTM Driven by Monthly Income Distributions and End-Date Distributions

    Yield to Maturity Chart

    As the Fund Matures

    Termination: iBonds ETFs terminate around December 31st of the year in the fund’s name, except for the 2016-2020 municipals which terminate on or around September 1st.

    In the final months: As 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 delisted from the exchange and shareholders are given a final distribution, which is similar to the principal repayment of an individual bond at maturity.

    As Bonds Mature, the ETF Will Transition to Cash Equivalents

    Bond Maturity Chart
    ETF NameTickerMaturity DateFinal Net
    Asset Value
    iShares 2012 S&P AMT-Free Muni Term ETF MUAA 8/15/2012 $50.62
    iShares 2013 S&P AMT-Free Muni Term ETF MUAB 8/15/2013 $50.50
    iShares 2014 S&P AMT-Free Muni Term ETF MUAC 8/15/2014 $51.18
    iBonds Sep 2015 AMT-Free Muni Bond ETF IBMD 9/1/2015 $52.57
    iBonds Mar 2016 Corporate ex-Financials ETF IBCB 3/29/2016 $99.50
    iBonds Mar 2016 Corporate ETF IBDA 3/29/2016 $100.82

    1Proceeds are expected to be distributed to investors shortly after the underlying bonds have matured. During maturity transition period, some portion of the Fund’s assets will be in cash and cash equivalents, and is therefore subject to potential reinvestment risk.

    Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses, which may be obtained by visiting the iShares ETF and BlackRock Fund prospectus pages. Read the prospectus carefully before investing.

    Investing involves risk, including possible loss of principal.

    Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments.

    There may be less information on the financial condition of municipal issuers than for public corporations. The market for municipal bonds may be less liquid than for taxable bonds. Some investors may be subject to federal or state income taxes or the Alternative Minimum Tax (AMT). Capital gains distributions, if any, are taxable.

    The iShares® iBonds® will terminate in March, September or December of the year in each Fund’s name. An investment in the iShares® iBonds® ETFs (“Funds”) is not guaranteed, and an investor may experience losses, including near or at the termination date. Unlike a direct investment in a bond that has a level coupon payment and a fixed payment at maturity, the Fund(s) will make distributions of income that vary over time. In the final months of each Fund’s operation, as the bonds it holds mature, its portfolio will transition to cash and cash-like instruments. As a result, its yield will tend to move toward prevailing money market rates (or, in the case of the municipal iBonds, tax-exempt money market rates) and may be lower than the yields of the bonds previously held by the Fund and lower than prevailing yields in the bond market.

     

    Following the Fund’s termination date, the Fund will distribute substantially all of its net assets, after deduction of any liabilities, to then-current investors without further notice and will no longer be listed or traded. The Funds’ distributions and liquidation proceeds are not predictable at the time of investment and the Funds do not seek to return any predetermined amount.

     

    The rate of Fund distribution payments may adversely affect the tax characterization of an investor’s returns from an investment in the Fund relative to a direct investment in bonds. If the amount an investor receives as liquidation proceeds upon the Fund’s termination is higher or lower than the investor’s cost basis, the investor may experience a gain or loss for tax purposes.

    Investment in the iShares® iBonds® Corporate ETFs is subject to the risks of the other funds and ETFs (underlying funds) in which it invests. The iSharesBond Corporate Term ETFs will incur acquired fund fees and expenses associated with its investments the underlying funds and additional fees associated with turnover in the underlying funds that are not included in the acquired fund fees and expenses.

    Diversification and asset allocation may not protect against market risk or loss of principal.

    There can be no assurance that an active trading market for shares of an ETF will develop or be maintained.

    The Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

    ©2016 BlackRock, Inc. All rights reserved. BLACKROCK, BLACKROCK SOLUTIONS, BUILD ON BLACKROCK, ALADDIN, iSHARES, iBONDS, iTHINKING, iSHARES CONNECT, FUND FRENZY, LIFEPATH, SO WHAT DO I DO WITH MY MONEY, INVESTING FOR A NEW WORLD, BUILT FOR THESE TIMES, the iShares Core Graphic, CoRI and the CoRI logo are registered and unregistered trademarks of BlackRock, Inc., or its subsidiaries in the United States and elsewhere. All other marks are the property of their respective owners.

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