Investing beyond the U.S. bond market can help diversify the sources of your returns and help contribute to the overall growth of your portfolio.

  • Diversify. Enhance diversification within your bond portfolio by adding alternative strategies and by considering bond exposure outside the U.S.
  • Focus on credit. With traditional bonds vulnerable to rising rates, consider bonds that offer additional opportunities for income and total return.
  • Go global. By focusing on global credit opportunities, your returns are broadened and not dependent upon the U.S. interest rate environment.
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Diversification is...

A risk management technique that combines multiple investments so that when one investment underperforms, the overall portfolio can be buffered by the others. Although diversification cannot assure profit or protect against a loss, over the long term, it can help reduce the volatility of portfolio returns.

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.

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.

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.

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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