iShares® iBonds® 2023 Term Maturity ETFs Near Final Distribution Dates
October 16 2023 - 4:01PM
Business Wire
BlackRock announced today the planned termination of three 2023
iShares iBonds ETFs, which possess the following timelines for
trading, net-asset value (NAV) calculation and expected
liquidation:
Ticker
Fund
name
Exchange
Last
day of trading
Final NAV calculation date
Liquidation date
IBDO
iShares iBonds Dec 2023 Term Corporate
ETF
NYSE Arca
12/15/2023
12/15/2023
12/22/2023
IBHC
iShares iBonds 2023 Term High Yield and
Income ETF
CBOE
12/15/2023
12/15/2023
12/22/2023
IBTD
iShares iBonds Dec 2023 Term Treasury
ETF
NASDAQ
12/15/2023
12/15/2023
12/22/2023
iBonds ETFs are designed to cease trading and mature during a
specific maturity window like an individual bond. Leading up to the
ETFs’ final distribution date, the bonds held by iBonds ETFs
mature, and the ETFs transition into short-term instruments and
cash. Shareholders will receive their proceeds from liquidations on
or around the listed liquidation dates, based on their brokerage’s
processes.
iBonds ETFs across treasuries, municipal bonds and both
investment-grade and high-yield corporate credit remain available
to investors. iShares iBonds ETFs can help market participants to
build bond ladders and manage interest rate risk in rising rate
environments.
About BlackRock BlackRock’s purpose is to help more
and more people experience financial well-being. As a fiduciary to
investors and a leading provider of financial technology, we help
millions of people build savings that serve them throughout their
lives by making investing easier and more affordable. For
additional information on BlackRock, please visit
www.blackrock.com/corporate | Twitter: @blackrock | LinkedIn:
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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 $3.12 trillion in assets under management as of
September 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.
Fixed income risks include interest-rate and credit risk.
Typically, when interest rates rise, there is a corresponding
decline in the value of debt securities. Credit risk refers to the
possibility that the debt issuer will not be able to make principal
and interest payments. Non-investment-grade debt securities
(high-yield/junk bonds) may be subject to greater market
fluctuations, risk of default or loss of income and principal than
higher-rated securities. There may be less information on the
financial condition of municipal issuers than for public
corporations. The market for municipal bonds may be less liquid
than for taxable bonds. Some investors may be subject to federal or
state income taxes or the Alternative Minimum Tax (AMT). Capital
gains distributions, if any, are taxable. 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 in October or
December 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 Funds are distributed by BlackRock Investments, LLC
(together with its affiliates, “BlackRock”).
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.
©2023 BlackRock, Inc or its affiliates. All rights reserved.
iSHARES, iBONDS and BLACKROCK are trademarks
of BlackRock, Inc. or its affiliates. All other trademarks are
those of their respective owners.
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version on businesswire.com: https://www.businesswire.com/news/home/20231016414135/en/
MEDIA:
Paige Hofman Paige.hofman@blackrock.com 212-810-3368
Rachel Waxman Rachel.waxman@blackrock.com
212-814-5807
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