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Fixed Income
Sep 18, 2026|ByKaren Veraa-Perry, CFA
Key takeaways
- Term maturity bond ETFs are coming due across the market – with an estimated $12B set to mature in the fourth quarter.1 Advisors face a timely opportunity to reposition portfolios and scale their practices.
- Advisors have many options when these funds mature, including reinvesting the proceeds into another ETF to reset a bond ladder, adjusting portfolio positioning, or using iBonds Ladder ETFs.
- iShares iBonds are the leading term maturity platform by assets, number of sectors and funds, and years of experience.2
What are iBonds? What happens when they mature?
iBonds are iShares’ suite of term maturity bond ETFs. Each of the 50+ iBonds ETFs seeks to follow an index of bonds that mature in a shared calendar year (2027, 2028, etc.). Once the last of their holdings reaches maturity, iBonds will mature as well – distributing remaining assets to shareholders, similar to the principal payment on an individual bond.
iShares launched the first iBonds in 2010 with the goal of giving investors the look and feel of owning individual bonds but with the benefits and conveniences of the ETF wrapper:
- Trade like a stock: iBonds ETFs trade on 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.
- 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, with maturities available anywhere from 2026 to 2056.
When iBonds reach their maturity year, their portfolios will gradually transition to cash and equivalents as the underlying bond holdings reach maturity. Once the last bonds mature, the fund will de-list from the exchange and will distribute its remaining net assets to shareholders in cash, similar to a maturity payment of an individual bond. See the 2026 schedule below.
Today, iBonds represent $40B+ across five bond categories: investment grade corporates, high yield, U.S. Treasuries, TIPS, and national municipal bonds. Advisors can use iBonds to help meet a wide range of client needs – from cash flow management to asset-liability matching and retirement planning – while making bond ladders easier to implement at scale across multiple client accounts. For more info, see the iBonds Advisor Center Page.
December 2026: Important dates for maturing iBonds
What should advisors do when an iBond matures?
For existing iBonds investors, the upcoming 2026 maturities may be a catalyst for revisiting bond allocations. When maturity proceeds hit client accounts, advisors may choose to reinvest into another iShares iBonds ETF to continue a bond ladder, change portfolio positioning, or begin using iBonds Ladder ETFs.
- Roll your ladder forward: Many advisors will hold five iBonds from the same asset class to build a short-term bond ladder. When the 2026 iBonds mature, consider making the simple switch to the corresponding 2031 iBond to reset your ladder for the year ahead. See the example below.
- Adjust portfolio positioning: When cash hits client accounts, advisors can take the opportunity to reevaluate their bond allocations. For example, given that yields have risen in 2026, advisors may consider extending their ladders to capture elevated rates. Advisors can view the latest yields, evaluate opportunities, and generate client proposals with the iBonds Ladder Tool.
- Put ladders on autopilot with iBonds Ladder ETFs: iBonds Ladder ETFs hold equal-weight exposures to five iBonds across the 1-to-5-year range and are professionally rebalanced each June. Unlike individual iBonds ETFs, these funds do not mature and are built for clients seeking a perpetual bond ladder.
iShares specialists can help with any questions about iBonds maturity mechanics or the upcoming reinvestment decision. Use this link to schedule a 1:1 meeting with our team.
Example 5-Year Corporate iBonds Ladder
Explore the iBonds in this ladder: IBDS – 2027 | IBDT – 2028 | IBDU – 2029 | IBDV – 2030 | IBDW – 2031
Why iShares iBonds for term maturity ETFs?
iShares launched the industry’s first term maturity ETFs in 2010 and has continued to innovate in the category. For advisors and their clients, iBonds may provide some unique advantages versus other term maturity managers:
- More choice: iBonds offers the broadest range of term maturity ETFs , including the only US Treasury and TIPS products and the only longer term (2037+) maturities. Advisors can build multi-asset class ladders or reallocate across sectors without mixing providers and data sources.
- Bonafide bond indexes: iShares partners with leading bond indexers like Bloomberg, ICE, and S&P for iBonds benchmarks, helping give investors confidence in the indexes underlying their term maturity exposures.
- Established maturity track record: iShares has launched more than 100 iBonds ETFs, including 40+ that have already matured. Investors can consult the iBonds Maturity Case Study for a historical look at how iBonds have performed relative to their initial yields.
Conclusion
iBonds ETFs combine the defined maturity feature of individual bonds with the diversification, transparency and tradability of an ETF, allowing advisors to implement bond ladders more efficiently across client portfolios. As 2026 iBonds come due, advisors can choose to roll proceeds into the next maturity year, adjust portfolio positioning, or use iBonds Ladder ETFs. With the broadest term maturity lineup, established index partnerships, and 15+ years of experience, iBonds provide a leading platform for advisors looking to help streamline their bond management.
FAQs
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A term maturity bond ETF holds a diversified portfolio of bonds that mature in the same calendar year. Unlike traditional bond ETFs, term maturity bond ETFs have a defined maturity date and are designed to pay out the fund’s remaining assets to shareholders when the fund terminates.
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As an iBond approaches maturity, the bonds in the portfolio mature and the fund gradually transitions to cash and cash-like instruments. When the fund terminates, it pays out its remaining assets to shareholders and is no longer listed or traded.
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Advisors can reinvest proceeds into a later-dated iBond to continue a bond ladder, adjust fixed income positioning, or consider an iBonds Ladder ETF for a professionally rebalanced 1-to-5-year bond ladder.
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iBonds can help advisors build diversified bond ladders with defined maturity dates across corporate, municipal, high yield, and Treasury exposures. Within a fixed income investing strategy, they can also help advisors scale and simplify bond ladder management across multiple client accounts.
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Term maturity bond ETFs can help advisors build bond ladders with staggered maturity dates, creating defined points when assets become available for reinvestment or planned client needs. As part of a retirement income strategy, this can help align portions of a fixed income portfolio with future cash flow needs.
Karen Veraa-Perry, CFA
Head of U.S. iShares Fixed Income Strategy at BlackRock
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1. Source: Bloomberg, BlackRock, as of 8/31/2026
2. As of 6/30/2026. iShares iBonds ETFs has 61 active funds versus 35 for the next-largest term maturity bond ETF provider by number of funds; $42.7 billion in AUM versus $28 billion for the next-largest provider by assets; and exposures across 5 sectors versus 4 sectors for the next-closest provider by sector breadth. iShares launched the first term maturity bond ETF in 2010.
3. As of 6/30/2026, iShares iBonds ETFs has 5 sectors versus 4 sectors for the next-closest provider by sector breadth.
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 by visiting the iShares Fund and BlackRock Fund prospectus pages. Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal.
The iShares® iBonds® will terminate in the month and year of each Fund’s name. An investment in the iShares® iBonds® ETFs (“Funds”) is not guaranteed, and an investor may experience losses, including near or at the termination date. Unlike a direct investment in a bond that has a level coupon payment and a fixed payment at maturity, the Fund(s) will make distributions of income that vary over time. In the final months of each Fund’s operation, as the bonds it holds mature, its portfolio will transition to cash and cash-like instruments. As a result, its yield will tend to move toward prevailing money market rates (or, in the case of the municipal iBonds ETFs, tax-exempt money market rates) and may be lower than the yields of the bonds previously held by the Fund and lower than prevailing yields in the bond market. As the Fund approaches its termination date, its holdings of money market or similar funds may increase, causing the Fund to incur the fees and expenses of these funds.
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’ distributions and liquidation proceeds are not predictable at the time of investment and the Funds do not seek to return any predetermined amount.
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® iBonds® Ladder ETFs will hold 5 iBonds ETFs (the “Underlying Funds”), spanning 5 consecutive maturity years. The Underlying Index is reconstituted each June such that the iBonds ETF with the nearest maturity is removed from the Underlying Index and the iBonds ETF with a five-year maturity is added. If an iBonds ETF is not available for a given maturity year within the five-year range, the Underlying Index will hold fewer iBonds ETF constituents.
An investment in the Fund(s) is not guaranteed, and an investor may experience losses, including near or at the reconstitution date. Unlike a direct investment in a bond that has a level coupon payment and a fixed payment at maturity, the Fund(s) will make distributions of income that vary over time. In the final months of each Underlying Funds’ operation, as the bonds it holds mature, its portfolio will transition to cash and cash-like instruments. As a result, its yield will tend to move toward prevailing money market rates, and may be lower than the yields of the bonds previously held by the Underlying Fund and lower than prevailing yields in the bond market.
The Funds’ distributions and liquidation proceeds are not predictable at the time of investment and the Funds do not seek to return any predetermined amount. 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.
There is no guarantee that dividends will be paid.
Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in the value of debt securities. Credit risk refers to the possibility that the debt issuer will not be able to make principal and interest payments.
Non-investment-grade debt securities (high-yield/junk bonds) may be subject to greater market fluctuations, risk of default or loss of income and principal than higher-rated securities.
There may be less information on the financial condition of municipal issuers than for public corporations. The market for municipal bonds may be less liquid than for taxable bonds. Some investors may be subject to federal or state income taxes or the Alternative Minimum Tax (AMT). Capital gains distributions, if any, are taxable.
TIPS can provide investors a hedge against inflation, as the inflation adjustment feature helps preserve the purchasing power of the investment. Because of this inflation adjustment feature, inflation protected bonds typically have lower yields than conventional fixed rate bonds and will likely decline in price during periods of deflation, which could result in losses. Government backing applies only to government issued securities, and does not apply to the funds.
An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency and its return and yield will fluctuate with market conditions.
Diversification and asset allocation may not protect against market risk or loss of principal.
Buying and selling shares of ETFs may result in brokerage commissions.
This material represents an assessment of the market environment as of the date indicated; is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any issuer or security in particular.
The strategies discussed are strictly for illustrative and educational purposes and are not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. There is no guarantee that any strategies discussed will be effective.
The information presented does not take into consideration commissions, tax implications, or other transactions costs, which may significantly affect the economic consequences of a given strategy or investment decision.
The Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
©2026 BlackRock, Inc or its affiliates. All Rights Reserved. BLACKROCK, iSHARES, iBONDS, ALADDIN and the iShares Core Graphic are trademarks of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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