iBonds ETFs are diversified portfolios of bonds that mature in the same year, spanning Corporates, Municipals, Treasuries, TIPS, and High Yield. Each fund is designed to provide regular interest payments and a final payout at maturity — similar to an individual bond, but with the ease and diversification benefits of an ETF.
Mature like a bond
Similar to individual bonds, iBonds ETFs have a specified maturity date, so there is less exposure to interest rate risk as maturity approaches.
Trade like a stock
iBonds ETFs trade throughout the day on an exchange, just like stocks, helping investors avoid the over-the-counter bond market.
Diversify like a fund
iBonds ETFs provide exposure to hundreds of bonds in a single fund, diversified across sectors, ratings, and revenue sources.
| Year | U.S. Treasuries | U.S. Corporate | Municipals | High Yield | U.S. TIPS |
|---|---|---|---|---|---|
| 2026 | IBTG | IBDR | IBMO | IBHF | IBIC |
| 2027 | IBTH | IBDS | IBMP | IBHG | IBID |
| 2028 | IBTI | IBDT | IBMQ | IBHH | IBIE |
| 2029 | IBTJ | IBDU | IBMR | IBHI | IBIF |
| 2030 | IBTK | IBDV | IBMS | IBHJ | IBIG |
Building individual bond ladders can be time consuming and inefficient, especially with liquidity and access issues. Scale your practice with iBonds ETFs instead.
If you like the definition and predictable cash flows of individual bonds, are moving to fee-based, and like the mechanics of ETFs, iBonds ETFs can be a great way to help scale your practice — designed to mature like a bond, trade like a stock, and diversify like a fund.
iBonds ETFs pass through the underlying bonds’ income each month and pay a final distribution of all the matured bonds, at which point the ETF will delist from the exchange. The income distributions can vary as bonds are added or removed at different yield levels; however, the final payment tends to offset any changes in income. As monthly income distributions increase, final NAV payouts tend to decrease and vice versa.
An iBonds ETF provides cash flows similar to a portfolio of bonds. Like a ladder there is some variability in cash flows, but investors can observe the approximate average YTM of the underlying bond portfolio at the time of purchase.
iBonds ETFs invest in bonds scheduled to mature throughout the calendar year starting January 1st. For the investment grade, high yield, treasury and TIPS iBonds ETFs, 12-6 months prior to maturity, the proceeds from coupons and maturities will be reinvested back into index eligible bonds. Beginning 6 months prior to maturity, these proceeds will be invested into cash equivalents. For the municipal iBonds ETF franchise, transition to cash equivalents begins 12 months prior to maturity. The underlying bond maturity schedule for the different series are as follows:
Investors will receive the final net asset value per share, which includes the proceeds from bond maturities and any undistributed interest.
The distribution, as reflected on Form 1099s to be received by shareholders, may have the following classifications:
While iBonds are designed to provide a similar experience to holding an individual cash bond, several factors may impact NAV total return on annualized basis relative an investors’ initial net acquisition yield:
1. iBonds AUM in the US as of 6/30/26 was $42.6bn
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, 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.
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.
There can be no assurance that performance will be enhanced or risk will be reduced for funds that seek to provide exposure to certain quantitative investment characteristics ("factors"). Exposure to such investment factors may detract from performance in some market environments, perhaps for extended periods. In such circumstances, a fund may seek to maintain exposure to the targeted investment factors and not adjust to target different factors, which could result in losses.
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 or in concentrations of single countries.
The fund may use derivatives to hedge its investments or to seek to enhance returns. Derivatives entail risks relating to liquidity, leverage and credit that may reduce returns and increase volatility.
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.
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.
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 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.
Transactions in shares of ETFs may result in brokerage commissions and will generate tax consequences. All regulated investment companies are obliged to distribute portfolio gains to shareholders.
Diversification and asset allocation may not protect against market risk or loss of principal.
Investment comparisons are for illustrative purposes only. To better understand the similarities and differences between investments, including investment objectives, risks, fees and expenses, it is important to read the products prospectuses.
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.
This material contains general information only and does not take into account an individual's financial circumstances. This information should not be relied upon as a primary basis for an investment decision. Rather, an assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial professional before making an investment decision.
The Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
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