Bond ETFs with a set maturity date, designed to help you invest for specific future goals.
What are iBonds ETFs?
iBonds ETFs are bond exchange-traded funds (ETFs) that mature in a specific calendar year. Each iBonds ETF invests in a diversified group of bonds that all mature around the same time and makes a final payment when the ETF reaches maturity.
They are designed to combine features of individual bonds and bond ETFs. Like an individual bond, an iBonds ETF has a clear maturity date. Like an ETF, it offers diversification across many bonds and can be bought and sold on an exchange.
This structure can help investors plan ahead for known future needs, such as funding education costs, supplementing retirement income, or managing long‑term savings goals.
Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.
Investment grade corporate iBonds ETFs
Explore iBonds € and $ investment grade corporate ETFs with maturities through 2036 and 2037, offering exposure to corporate bonds to help plan investments around future dates.
€ Crossover Corporate iBonds ETFs
Explore iBonds € Crossover Corporate ETFs, which invest in a mix of investment grade and higher‑risk corporate bonds that all mature in the same year.
$ Corporate high yield iBonds ETFs
Explore iBonds $ High Yield Corporate ETFs, investing in higher‑risk corporate bonds with a set maturity year and potential for higher income, but greater volatility.
What are iBonds ETFs designed to do?
Mature like a bond
Each iBonds ETF has a set maturity date and aims to make a final payment when it reaches that date, similar to an individual bond.
Trade like a stock
iBonds ETFs can be bought and sold on an exchange during their lifetime, giving flexibility if your circumstances or goals change.
Diversify like a fund
Each ETF invests in many bonds within a specific market and maturity year, helping spread risk across issuers. Diversification does not remove the risk of losses.
Bond laddering FAQs
Bond laddering is a fixed income strategy designed to manage interest rate risk and cash flows. It involves holding bonds that mature in successive calendar years. As bonds mature, proceeds can be reinvested at prevailing market rates, extending the ladder over time.
This approach helps spread duration exposure across short- and longer-term maturities and can be applied using individual bonds or fixed maturity bond ETFs.
Benefits of iBonds ETFs
iBonds ETFs are designed to give investors clearer visibility over bond maturity dates while maintaining the flexibility of an ETF.
Diversified access
iBonds ETFs trade on an exchange and invest in a broad range of bonds, helping investors access bond markets through a single investment.
Manage interest rate exposure
Because each iBonds ETF matures in a specific year, investors can choose maturity dates that align with their time horizon and risk tolerance.
Plan for future cash needs
Defined maturity dates can help investors plan for future spending or income needs. Final payments are not guaranteed and depend on market conditions.
Build bond ladders
Using several iBonds ETFs with different maturity years can help spread investments over time using a small number of funds.
iBonds ETFs combine features of individual bonds and traditional bond ETFs by offering a set maturity date alongside diversification and exchange trading.
As with all bond investments, key risks include interest rate risk and credit risk. Bond prices typically fall when interest rates rise, and there is a risk that bond issuers may not be able to make payments. This means the value of an iBonds ETF can change before maturity, and returns are not guaranteed.
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 repay the principal and make interest payments.
When you invest in an iBonds ETF
When you are ready to purchase an iBonds ETF, we have tools to help you understand the estimated net acquisition yield of the fund. It’s an estimate of how much money you may make per year, after fees and today’s price, if you hold the ETF until 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.
During the life of the iBonds ETF
iBonds ETFs aim to provide returns through regular income payments. The value of the ETF can rise or fall during this period.
When the iBonds ETF matures
- iBonds ETF terminate in 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, ETF delists from the exchange.
- Final payment paid to shareholders (This includes the initial investment along with any income generated by the ETF, minus fees and expenses)
iShares iBonds ETF line up
The iBonds ETF range covers different types of bond markets, allowing investors to choose options that match their investment goals and risk preferences.
Certain products on this page track MSCI and Bloomberg indices.
Certain products on this page track MSCI and Bloomberg indices.
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