NEW YORK--(BUSINESS WIRE)--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:
iShares® iBonds® Dec 2017
iShares® iBonds® Dec 2019
iShares® iBonds® Dec 2021
iShares® iBonds® Dec 2022
iShares® iBonds® Dec 2023
iShares® iBonds® Dec 2024
iShares® iBonds® Dec 2025
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.”
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
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.