BlackRock, Inc. (NYSE: 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:
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iSharesBond 2016 Corporate Term ETF (NYSEArca: IBDA)
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iSharesBond 2018 Corporate Term ETF (NYSEArca: IBDB)
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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 www.blackrock.com.
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 www.iShares.com.
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
Copyright Business Wire 2013