Bond Ladders Just Got Easier to Manage
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.
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
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
|ETF Name||Ticker||Maturity Date||Final Net|
|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.