iBonds ETFs help investors and advisors build
better bond ladders
BlackRock, Inc. (NYSE:BLK) announced today that its iShares
Exchange Traded Funds (ETFs) business, the world’s largest manager
of ETFs, has expanded the suite of iShares® iBonds® with seven new
ETFs.
The new iBonds ETFs launching today on the NYSE include:
Fund Name
Ticker
iShares® iBonds® Dec 2017Corporate ETF
IBDJ
iShares® iBonds® Dec 2019Corporate ETF
IBDK
iShares® iBonds® Dec 2021Corporate ETF
IBDM
iShares® iBonds® Dec 2022Corporate ETF
IBDN
iShares® iBonds® Dec 2023Corporate ETF
IBDO
iShares® iBonds® Dec 2024Corporate ETF
IBDP
iShares® iBonds® Dec 2025Corporate ETF
IBDQ
Each of these new iBonds ETFs has an expense ratio of 0.10%. The
iBonds suite now includes 14 corporate, four corporate
ex-financials, and six muni term maturity ETFs.
iBonds ETFs are investment grade, bond portfolios that have
specific maturity dates and trade like a stock. With iBonds,
investors and advisors can easily build diversified, laddered bond
portfolios without having to transact in the over-the-counter bond
market. The ETF structure provides the added benefits of
diversification, professional management, exchange traded
flexibility, and price transparency.
For investors who are concerned about rising rates, the interest
rate sensitivity of the iBonds Corporate Term ETFs will decline
through time as the funds approach maturity. If iBonds are held
until maturity, investors can expect to experience a yield that is
similar to the yield to maturity of the underlying bonds held in
the ETF.
Matthew Tucker, Head of iShares Fixed Income Investment Strategy
at BlackRock commented:
“We’re excited to expand our suite of iBonds ETFs. We have seen
increased interest in iBonds from advisors and individuals who
traditionally have invested in individual bonds. With this
expansion of the iBonds suite, investors have a new tool to help
them build corporate bond ladders out to 10 years.”
About BlackRock
BlackRock is a leader in investment management, risk management
and advisory services for institutional and retail clients
worldwide. At December 31, 2014, BlackRock’s AUM was $4.652
trillion. BlackRock helps clients meet their goals and overcome
challenges with a range of products that include separate accounts,
mutual funds, iShares® (exchange-traded funds), and other pooled
investment vehicles. BlackRock also offers risk management,
advisory and enterprise investment system services to a broad base
of institutional investors through BlackRock Solutions®.
Headquartered in New York City, as of September 30, 2014, the firm
had approximately 12,100 employees in more than 30 countries and a
major presence in key global markets, including North and South
America, Europe, Asia, Australia and the Middle East and Africa.
For additional information, please visit the Company’s website at
www.blackrock.com | Twitter: @blackrock_news | Blog:
www.blackrockblog.com | LinkedIn:
www.linkedin.com/company/blackrock
About iShares
iShares is a global leader in exchange-traded funds (ETFs), with
more than a decade of expertise and commitment to individual and
institutional investors of all sizes. With over 700 funds globally
across multiple asset classes and strategies and more than $1
trillion in assets under management as of December 31, 2014,
iShares helps clients around the world build the core of their
portfolios, meet specific investment goals and implement market
views. iShares funds are powered by the expert portfolio and risk
management of BlackRock, trusted to manage more money than any
other investment firm.1
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 and, if
available, the summary prospectuses which may be obtained by
visiting www.iShares.com or
www.BlackRock.com. Read the prospectus carefully before
investing.
Investing involves risk, including possible loss of
principal. There can be no assurance that an active trading
market for shares of an ETF will develop or be maintained.
Diversification may not protect against market risk or 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.
Funds that concentrate investments in specific industries,
sectors, markets or asset classes may underperform or be more
volatile than other industries, sectors, markets or asset classes
and than the general securities market.
The iShares® iBonds® ETFs will terminate on or about December 31
of the year in each Fund’s name. An investment in the Fund(s) 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, 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 iShares® iBonds® Corporate 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.
The Funds are distributed by BlackRock Investments, LLC
(together with its affiliates, “BlackRock”).
©2015 BlackRock. All rights reserved. iSHARES, BLACKROCK,
iBONDS and BLACKROCK SOLUTIONS are registered trademarks
of BlackRock. All other marks are those of their respective owners.
iS-14971-0315
1 Based on 4.652T in AUM as of 12/31/14.
BlackRock, Inc.Melissa Garville,
212-810-5528Melissa.Garville@blackrock.comorDiane Henry,
415-670-4567Diane.Henry@blackrock.com
BlackRock (NYSE:BLK)
Historical Stock Chart
From Mar 2024 to Apr 2024
BlackRock (NYSE:BLK)
Historical Stock Chart
From Apr 2023 to Apr 2024