BlackRock Expands iSharesBondsTM Suite of Defined Maturity ETFs

Before you go, we thought you'd like these...
Before you go close icon

BlackRock Expands iSharesBonds TM Suite of Defined Maturity ETFs

iSharesBonds provide efficient access to corporate credit with a defined maturity date

NEW YORK--(BUSINESS WIRE)-- BlackRock, Inc. (NYS: BLK) announced today that its iShares Exchange Traded Funds (ETFs) business, the world's largest manager of ETFs1, has expanded its suite of iSharesBondsTM with four new Corporate Term ETFs. These new products offer investors efficient access to a diversified pool of investment grade corporate credit securities with a defined maturity date, daily liquidity and price transparency.

For investors who are concerned about rising rates, the interest rate sensitivity of the iSharesBonds Corporate Term ETFs will decline through time as the funds approach maturity. If iSharesBonds 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. iSharesBonds can be utilized to target and manage interest rate risk, just like with a portfolio of individual bonds. Investors can also construct a bond ladder using iSharesBonds to help achieve a well-diversified portfolio for investments of almost any size.

The four iSharesBonds launched today are as follows:

  • iSharesBond 2016 Corporate Term ETF (NYSEArca: IBDA)
  • iSharesBond 2018 Corporate Term ETF (NYSEArca: IBDB)
  • iSharesBond 2020 Corporate Term ETF (NYSEArca: IBDC)
  • iSharesBond 2023 Corporate Term ETF (NYSEArca: IBDD)

iShares previously launched four iSharesBonds Corporate ex-Financials Term ETFs in April 2013. In the two months since launch the funds' Assets Under Management (AUM) have grown over 30%, illustrating the strong demand investors have for iSharesBonds defined maturity ETFs.

Matthew Tucker, Head of iShares Fixed Income Investment Strategy commented:

"iSharesBonds give investors an entirely new way to access the bond market, one that combines the benefits of both individual bonds and traditional ETFs. We expect the funds to be used by any investor who would use individual bonds, for building diversified portfolios, managing interest rate risk, and constructing bond ladders.

"Meeting our clients' needs for efficient access to fixed income lies at the heart of the innovation of iSharesBonds. The launch of these four new iSharesBonds Corporate Term ETFs represents our continued commitment to innovation and bringing the best of BlackRock to our clients."

About BlackRock

BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. At March 31, 2013, BlackRock's AUM was $3.936 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 March 31, 2013, the firm has approximately 10,600 employees in 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

About iShares

iShares is a global product leader in exchange traded funds with over 600 funds globally across equities, fixed income and commodities, which trade on 20 exchanges worldwide. The iShares Funds are bought and sold like common stocks on securities exchanges. The iShares Funds are attractive to many individual and institutional investors and financial intermediaries because of their relative low cost, tax efficiency and trading flexibility. Investors can purchase and sell shares through any brokerage firm, financial advisor, or online broker, and hold the funds in any type of brokerage account. The iShares customer base consists of the institutional segment of pension plans and fund managers, as well as the retail segment of financial advisors and high net worth individuals.

Carefully consider the iShares Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses, which may be obtained by calling 1-800-iShares (1-800-474-2737) or by visiting . Read the prospectus carefully before investing.

Investing involves risk, including possible loss of principal. Transactions in shares of the iShares Funds will result in brokerage commissions and will generate tax consequences. iShares Funds are obliged to distribute portfolio gains to shareholders. Shares of the iShares Funds may be sold throughout the day on the exchange through any brokerage account. However, shares may only be redeemed directly from a Fund by Authorized Participants, in very large creation/redemption units. 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.

Bonds and bond funds will decrease in value as interest rates rise and are subject to credit risk, which refers to the possibility that the debt issuers will not be able to make principal and interest payments. Narrowly focused investments typically exhibit higher volatility and are subject to greater geographic or asset class risk. Shares of the Fund trade at market price, which may be greater or less than net asset value.

The Fund will terminate on or about March 31 of the year in 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. In the final months of the Fund's operation, as the bonds it holds mature, its portfolio will transition to cash and cash-like instruments. 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 do not seek to return any predetermined amount.

During the twelve months prior to the Fund's planned termination date, its yield will generally 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 for bonds in the market.

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").

The iShares Funds are not sponsored, endorsed or issued by Barclays Capital Inc., nor does this company make any representation regarding the advisability of investing in the Funds. BlackRock is not affiliated with the company listed above.

© 2013 BlackRock. All rights reserved. iSHARES, BLACKROCK, iSHARESBONDS and BLACKROCK SOLUTIONS are registered and unregistered trademarks of BlackRock. All other marks are those of their respective owners. iS-10123-0613

1 Source: BlackRock ETP Landscape, May 2013

BlackRock, Inc.
Christine Hudacko, 415-670-2687
Melissa Garville, 212-810-5528

KEYWORDS:   United States  North America  California  New York


The article BlackRock Expands iSharesBondsTM Suite of Defined Maturity ETFs originally appeared on

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

People are Reading