NEW YORK--(BUSINESS WIRE)--BlackRock announced today that two iShares iBonds Term Corporate ETFs are nearing their final distribution dates.
iShares iBonds Mar 2018 Term Corporate ex-Financials ETF (NYSE: IBCC) will, by design, cease trading at the close of U.S. market hours on March 15, 2018. Leading up to the final distribution date, the individual bonds in the ETF will mature and the fund will transition into short-term, tax-exempt instruments and cash. Remaining shareholders can expect to receive the entire amount of their proceeds in cash on or after March 21, 2018, subject to their brokerage processes.
iShares iBonds Mar 2018 Term Corporate ETF (NYSE: IBDB) will, by design, cease trading at the close of U.S. market hours on March 26, 2018. Leading up to the final distribution date, the individual bonds in the ETF will mature and the fund will transition into short-term, tax-exempt instruments and cash. Remaining shareholders can expect to receive the entire amount of their proceeds in cash on or after April 2, 2018, subject to their brokerage processes.
iShares iBonds Corporate Bond ETFs are designed to offer investors exposure to investment grade corporate bonds with potential benefits of both ETFs and bonds. Each fund contains a diversified set of securities and seeks to track a Bloomberg Barclays Maturity Corporate Index, and can be bought and sold daily on an exchange. Like a bond, each fund has periodic distributions of income and a pre-determined date when the fund will close and distribute proceeds to shareholders.
BlackRock helps investors build better financial futures. As a fiduciary to our clients, we provide the investment and technology solutions they need when planning for their most important goals. As of December 31, 2017, the firm managed approximately $6.288 trillion in assets on behalf of investors worldwide. For additional information on BlackRock, please visit www.blackrock.com | Twitter: @blackrock | 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 800 funds globally across multiple asset classes and strategies and more than $1.5 trillion in assets under management as of December 31, 2017, 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 firm1.
1 Based on $6.288 trillion in AUM as of 12/31/17
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 www.iShares.com or www.blackrock.com. 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.
The iShares® iBonds® ETFs (“Funds”) will terminate on or about March 31 or 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.
The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
©2018 BlackRock. iSHARES, iBONDS and BLACKROCK are registered trademarks of BlackRock. All other marks are the property of their respective owners.