Fixed Income

iBonds ETFs: What to do with maturing iBonds?

Oct 23, 2025|ByKaren Veraa-Perry, CFA

KEY TAKEAWAYS

  • Bonds are coming due — across the market. From individual bonds to target-maturity ETFs like iShares® iBonds® ETFs, $3.2 trillion in fixed income assets are set to mature over the next year.1 Combined with cash anticipated to continue coming off the sidelines as the Fed cuts rates, advisors face a timely opportunity to reposition portfolios and scale their practices.
  • With over $37 billion in assets under management, iShares® iBonds® ETFs have become an important tool for advisors to manage fixed income exposures and help clients navigate the evolving rate environment.2 iBonds can also add longer maturities to potentially boost income in portfolios.
  • The iBonds 2025 TIPS ETF reached its maturity in October and the Muni, Corporate, U.S. Treasury, and High Yield ETFs will mature in December:
Dates for iBonds maturing in December 2025
  • When iBonds ETFs mature, advisors may choose to reinvest the proceeds into another iShares iBond ETF to continue a bond ladder, change portfolio positioning, or begin using iBonds Ladder ETFs.

Whether your clients are new to fixed income or are seasoned pros, iBonds ETFs are a way for advisors to help clients try to solve some of today’s investing challenges — and plan for tomorrow’s needs.

This article is designed to help advisors plan for the annual maturity of iBonds TIPS ETFs in October, followed by munis, Treasuries, corporates, and high yield iBonds ETFs in December. If you’re new to iBonds, scroll down to the “New to iBonds?” section for a quick intro.

WHAT HAPPENS WHEN iBONDS ETFs MATURE?

  • Transition to cash: During the final year of its cycle, the fund invests proceeds from bond maturities in cash equivalents.
  • Final bond matures: When the last bond matures, the fund will hold 100% cash equivalents.
  • Repay shareholders: The fund will be delisted from the exchange and repay proceeds to shareholders in cash, just like an individual bond.

Figure 1: Fund holdings shift from bonds to cash as the fund approaches maturity (IBDP – 2024 Corporate iBonds ETF)
Chart showing fund holdings shift from bonds to cash as the fund approaches maturity (IBDO – 2023 Corporate iBonds ETF)

Source: BlackRock as of 12/31/2024 using the portfolio composition of the iShares iBonds Dec 2024 Term Corporate ETF (IBDP).

3 WAYS TO RESET YOUR BOND LADDER

When iBonds ETFs mature, advisors may choose to reinvest the proceeds into another iShares iBonds ETF to continue a bond ladder, change portfolio positioning, or begin using iBonds Ladder ETFs.

  1. Reinvest proceeds into the next rung on your ladder

Many advisors build 1-5 year bond ladders. Consider making a simple switch to 2026, 2028, and 2030 iBonds to help reset your bond ladders.
ibonds calendar chart

For illustrative purposes only. The 2026, 2028, and 2030 iBonds are examples of iBonds within the 1-5 year duration range that can be used to “reset your bond ladder”. To further customize bond ladders based on individual client needs, reference the chart with the complete list of iBonds.
list of ibonds etfs

As of August 31, 2025. Subject to change.

2. Change bond portfolio positioning
When cash hits client accounts, advisors can use this time to decide which sector of the bond market to invest. Use the iBonds Ladder tool to check current yields on U.S. Treasury, TIPS, municipal, investment grade corporate and high yield iBonds ETFs.

3. Put your next ladder on autopilot - with iBonds Ladder ETFs
iBonds Ladder ETFs are designed to hold an equal weighting of five iBonds ETFs in the 1-to-5 year range and are professionally managed to rebalance every June. This series of funds do not mature and are designed for clients who want a perpetual bond ladder. Explore the iBonds Ladder ETFs product brief to learn more.

Important dates for maturing iBonds

The iBonds 2025 Term TIPS ETF (IBIB) returned final proceeds on October 20, 2025.

The calendar for the remaining iBonds ETFs set to mature in December 2025 is as follows:

December 2025

chart of ibonds laddered etfs

Source: BlackRock as of August 31, 2025.

NEW TO iBONDS ETFs?

If you’re less familiar with iBonds ETFs, here’s a quick overview:

iBonds ETFs are designed to diversify like a fund, trade like a stock and mature like a bond. iBonds can be used to build a bond ladder, help manage cash flows from existing bonds, express a view on the yield curve, or plan and manage retirement by scaling Required Minimum Distributions (RMDs) or creating a bridge for clients who want to delay Social Security benefits.

iBonds ETFs launched in 2010 with the goal of giving investors the look and feel of owning individual bonds through an ETF wrapper. Available across municipal, investment grade, U.S. Treasuries, high yield corporate, and U.S. TIPS, iBonds ETFs are term maturity ETFs made up of a diversified portfolio of individual bonds with three key features:
  • Mature like a bond – Investors get the benefit of having a defined maturity similar to individual bonds. iBonds ETFs typically mature in October or December of their maturity year.
  • Trade like a stock – iBonds ETFs trade on an exchange, offering transparency and ease compared to sourcing individual bonds in the over-the-counter market.
  • Diversify like a fund – Each iBonds ETF holds a diversified portfolio of bonds, giving broad exposure without having to pick individual issuers.

To learn more about iBonds ETFs, visit the iBonds Advisor Center Page>

CONCLUSION

  • Advisors can use iBonds ETFs to manage a wide range of client needs, including cashflow management, asset-liability matching and retirement planning. iBonds ETFs enable advisors to build bond ladder strategies without the time-consuming and potentially costly effort to research and purchase the individual bonds, making it easy to scale bonds across multiple client accounts.
  • Planning for the upcoming maturity of iBonds ETFs can help advisors take advantage of the potential benefits iBonds have to offer clients.

Contact your BlackRock representative or schedule a 1-1 meeting with our team to learn more.
Karen Veraa

Karen Veraa-Perry, CFA

Head of U.S. iShares Fixed Income Strategy

Karen Veraa-Perry, CFA, is a Fixed Income Product Strategist within BlackRock’s Global Fixed Income Group focusing on iShares fixed income ETFs.

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