Build better bond ladders.
iBonds exchange-traded funds (“ETFs”) are an innovative suite of bond funds that hold a diversified portfolio of bonds with similar maturity dates. Each ETF provides regular interest payments and distributes a final payout in its stated maturity year, similar to traditional bond laddering strategies. However, the funds’ unique structure is designed to help investors easily build bond ladders with only a handful of funds.
Mature like a bond
iBonds ETFs payout their NAV in their maturity year1
Trade like a stock
iBonds ETFs can be bought and sold like a share of stock
Diversify like a fund
iBonds ETFs hold several bonds from different industries or states
The unique features of iShares iBonds ETFs can help you more easily build bond ladders, pick points on the yield curve, or even match expected cash flow needs in the future.
See how iBonds ETFs compare
For illustrative purposes only.
Financial professionals can test drive the iBonds ETFs suite with our fully customizable bond laddering tool.
iBonds ETF strategies span several asset classes, including: U.S. Treasuries, U.S. TIPS, municipals, investment grade and high yield bonds. Whether you are looking for a conservative or aggressive strategy, iBonds ETFs has a solution to help you build a customized portfolio for your specific needs.
| Year | U.S. Treasuries | U.S. TIPS | Municipals | Investment Grade Corporate | High Yield & Income Corporate |
|---|---|---|---|---|---|
| 2024 | IBTE | IBIA | IBMM | IBDP | IBHD |
| 2025 | IBTF | IBIB | IBMN | IBDQ | IBHE |
| 2026 | IBTG | IBIC | IBMO | IBDR | IBHF |
| 2027 | IBTH | IBID | IBMP | IBDS | IBHG |
| 2028 | IBTI | IBIE | IBMQ | IBDT | IBHH |
| 2029 | IBTJ | IBIF | IBMR | IBDU | IBHI |
| 2030 | IBTK | IBIG | IBMS | IBDV | IBHJ |
| 2031 | IBTL | IBIH | IBDW | IBHK | |
| 2032 | IBTM | IBII | IBDX | ||
| 2033 | IBTO | IBIJ | IBDY | ||
| 2034 | IBTP | IBIK | IBDZ | ||
| 2044 | IBGA | ||||
| 2054 | IBGK |
When you are ready to purchase an iBonds ETF, we have tools to help you understand the estimated net acquisition yield of the fund. The estimated net acquisition yield provides a yield estimate, net of fees and market price impact, if the fund is held to maturity.
On each iBonds ETFs product page, the Estimated Net Acquisition Yield Calculator can provide a yield estimate if you enter a projected market price. This calculator is also built into the iBonds ETF Ladder Tool, which allows you to view multiple funds at once.
Preview the Estimated Yield of an iBonds ETF
For illustrative purposes only.
iBonds ETFs are designed to provide a yield-to-maturity ("YTM") profile comparable to that of the underlying bond portfolio. The funds seek to preserve an investor’s anticipated yield-to-maturity through a combination of monthly distributions and a final end-date distribution.1
Anticipated investor YTM driven by monthly income distributions and end-date distributions
iBonds ETFs terminate in October or December of the year in the fund’s name.
In the final months when the bonds in the portfolio mature, the fund's holdings transition to cash and cash equivalents.
After all the bonds in the portfolio mature, the ETF is closed and shareholders receive a final distribution equivalent to the fund NAV, after liabilities. This is a similar experience to the principal repayment of an individual bond at maturity.
As the fund’s holdings mature, the ETF will transition to cash equivalents
Since launching in 2010, 3 U.S. Treasury, 12 municipal, 16 investment grade corporate, and 3 high yield and income corporate iBonds ETFs have successfully matured and liquidated. All 34 iBonds ETFs provided a total return experience that closely approximated holding a portfolio of individual bonds.
iBonds Ladder ETFs take convenience to the next level:
| Suite | Fund name |
|---|---|
| U.S Treasuries | iShares iBonds 1-5 Year Treasury Ladder ETF (LDRT) |
| U.S. TIPS | iShares iBonds 1-5 Year TIPS Ladder ETF (LDRI) |
| Investment Grade Corporate | iShares iBonds 1-5 Year Corporate Ladder ETF (LDRC) |
| High Yield & Income Corporate | iShares iBonds 1-5 Year High Yield and Income Ladder ETF (LDRH) |
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1 Proceeds are expected to be distributed to investors once all the underlying bonds have matured. During maturity transition period, some portion of the Fund’s assets will be in cash and cash equivalents, and is therefore subject to potential reinvestment risk.
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 the iShares Fund and BlackRock Fund prospectus pages. Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal.
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.
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.
The iShares® iBonds® will terminate in the month and year of each Fund’s name. An investment in the iShares® iBonds® ETFs (“Funds”) 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 (or, in the case of the municipal iBonds ETFs, tax-exempt 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® iBonds® Ladder ETFs will hold 5 iBonds ETFs (the “Underlying Funds”), spanning 5 consecutive maturity years. The Underlying Index is reconstituted each June such that the iBonds ETF with the nearest maturity is removed from the Underlying Index and the iBonds ETF with a five-year maturity is added. If an iBonds ETF is not available for a given maturity year within the five-year range, the Underlying Index will hold fewer iBonds ETF constituents.
An investment in the Fund(s) is not guaranteed, and an investor may experience losses, including near or at the reconstitution 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 Underlying Funds’ 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 Underlying Fund and lower than prevailing yields in the bond market.
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.
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.
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.
Transactions in shares of ETFs may result in brokerage commissions and will generate tax consequences. All regulated investment companies are obliged to distribute portfolio gains to shareholders.
Diversification and asset allocation may not protect against market risk or loss of principal.
Investment comparisons are for illustrative purposes only. To better understand the similarities and differences between investments, including investment objectives, risks, fees and expenses, it is important to read the products' prospectuses.
The strategies discussed are strictly for illustrative and educational purposes and are not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. There is no guarantee that any strategies discussed will be effective.
The information presented does not take into consideration commissions, tax implications, or other transactions costs, which may significantly affect the economic consequences of a given strategy or investment decision.
This material contains general information only and does not take into account an individual's financial circumstances. This information should not be relied upon as a primary basis for an investment decision. Rather, an assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial professional before making an investment decision.
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 Funds are distributed by BlackRock Investments, LLC (together with its affiliates, "BlackRock").
© 2024 BlackRock, Inc or its affiliates. All Rights Reserved. BLACKROCK, iSHARES, iBONDS, LIFEPATH, ALADDIN and the iShares Core Graphic are trademarks of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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