Move cash off the sidelines to seek incremental yield and help minimize interest rate risk, but be aware of the different levels and kinds of risk some funds may take.

  • Don’t get squeezed by safety. Staying on the sidelines in low-return asset classes like cash has the potential to provide negative real returns (after inflation).
  • Put your cash to work. Ultra-short duration strategies can help you stay invested, seek income and minimize interest rate risk.
  • Take action. Consider low duration and floating rate loan instruments, but be aware of the different levels and kinds of risk these funds may take.
Solutions to Put Cash to Work in a Rising Rate Environment

Investment Solutions

Minimize interest rate risk and seek incremental yield

Add a diversified strategy that seeks income with low interest rate risk

Find Income that adjusts with interest rates

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 visiting the iShares ETF and BlackRock Mutual Fund prospectus pages. Read the prospectus carefully before investing.

Investing involves risk, including possible loss of principal.

The BlackRock funds are actively managed and their characteristics will vary.

The iShares Short Maturity Bond ETF is actively managed and does not seek to replicate the performance of a specified index. The Fund may have a higher portfolio turnover than funds that seek to replicate the performance of an index.

Active funds typically charge higher fees than index-linked products due to increased trading and research expenses that may be incurred.

Bond values fluctuate in price so the value of your investment can go down depending on market conditions. The two main risks related to fixed income investing are interest-rate risk and credit risk. Typically, when interest rates rise, there is a corresponding decline in the market value of bonds. Credit risk refers to the possibility that the issuer of the bond will not be able to make principal and interest payments.

Securities with floating or variable interest rates may decline in value if their coupon rates do not keep pace with comparable market interest rates. The Fund’s income may decline when interest rates fall because most of the debt instruments held by the Fund will have floating or variable rates.

International investing involves risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. These risks often are heightened for investments in emerging/ developing markets, in concentrations of single countries or smaller capital markets.

Diversification and asset allocation may not protect against market risk or loss principal.

Investing in long/short strategies presents the opportunity for significant losses, including the loss of your total investment. Such strategies have the potential for heightened volatility and in general, are not suitable for all investors.

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