NEW YORK--(BUSINESS WIRE)--Today, BlackRock expanded its iShares iBonds ETF franchise with the industry’s first TIPS defined maturity bond ETFs. The TIPS iBonds ETF suite consists of 10 funds that invest in U.S. Treasury Inflation-Protected Securities with maturities ranging from 2024 to 2033.
iBonds ETFs hold diverse bonds with matching maturity dates. Each ETF provides regular interest payments and distributes a final payout in its stated maturity year. Designed to mature like a bond, trade like a stock, and diversify like a fund, iBonds ETFs make bond laddering simpler with only a few ETFs rather than researching and purchasing numerous individual bonds.
Providing advisors new tools to help manage inflation and interest rate risk
“iBonds ETFs have become an essential part of advisors’ toolkits, helping them build bond ladders and better scale their practice across multiple client accounts,” said Karen Veraa, Head of U.S. iShares Fixed Income Strategy at BlackRock. “The TIPS iBonds ETF suite provides advisors a new way to navigate this higher for longer rate environment while simultaneously providing investors a way to manage inflation risk and access yield.”
BlackRock pioneered defined maturity bond ETFs with the launch of its first iBonds ETFs in 2010. With $23 billion in assets under management, the iBonds ETF franchise spans several asset classes, including U.S. Treasuries, municipals, investment grade, high yield, and now, TIPS. Since inception, BlackRock has launched 77 iBonds ETFs, with 47 still active.
In August 2023, BlackRock introduced iBonds ETFs to Europe.
Fund Name |
Ticker |
Expense
|
Index |
iShares® iBonds ® Oct 2024 Term TIPS ETF |
0.10% |
ICE 2024 Maturity US Inflation-Linked Treasury Index |
|
iShares® iBonds ® Oct 2025 Term TIPS ETF |
0.10% |
ICE 2025 Maturity US Inflation-Linked Treasury Index |
|
iShares® iBonds ® Oct 2026 Term TIPS ETF |
0.10% |
ICE 2026 Maturity US Inflation-Linked Treasury Index |
|
iShares® iBonds ® Oct 2027 Term TIPS ETF |
0.10% |
ICE 2027 Maturity US Inflation-Linked Treasury Index |
|
iShares® iBonds ® Oct 2028 Term TIPS ETF |
0.10% |
ICE 2028 Maturity US Inflation-Linked Treasury Index |
|
iShares® iBonds ® Oct 2029 Term TIPS ETF |
0.10% |
ICE 2029 Maturity US Inflation-Linked Treasury Index |
|
iShares® iBonds ® Oct 2030 Term TIPS ETF |
0.10% |
ICE 2030 Maturity US Inflation-Linked Treasury Index |
|
iShares® iBonds ® Oct 2031 Term TIPS ETF |
0.10% |
ICE 2031 Maturity US Inflation-Linked Treasury Index |
|
iShares® iBonds ® Oct 2032 Term TIPS ETF |
0.10% |
ICE 2032 Maturity US Inflation-Linked Treasury Index |
|
iShares® iBonds ® Oct 2033 Term TIPS ETF |
0.10% |
ICE 2033 Maturity US Inflation-Linked Treasury Index |
About BlackRock
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About iShares
iShares unlocks opportunity across markets to meet the evolving needs of investors. With more than twenty years of experience, a global line-up of 1300+ exchange traded funds (ETFs) and $3.21 trillion in assets under management as of June 30, 2023, iShares continues to drive progress for the financial industry. iShares funds are powered by the expert portfolio and risk management of BlackRock.
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.
This information should not be relied upon as research, investment advice, or a recommendation regarding any products, strategies, or any security in particular. This material is strictly for illustrative, educational, or informational purposes and is subject to change.
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.
TIPS can provide investors a hedge against inflation, as the inflation adjustment feature helps preserve the purchasing power of the investment. Because of this inflation adjustment feature, inflation protected bonds typically have lower yields than conventional fixed rate bonds and will likely decline in price during periods of deflation, which could result in losses. Government backing applies only to government issued securities, and does not apply to the funds.
An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency and its return and yield will fluctuate with market conditions.
The iShares® iBonds® ETFs (“Funds”) will terminate on or about October or December 15 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. As the Fund approaches its termination date, its holdings of money market or similar funds may increase, causing the Fund to incur the fees and expenses of these funds.
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 and BlackRock Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
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