iShares adds 2017 fund to lineup of iSharesBond corporate term ETFs

By Toni Weeks

San Luis Obispo, Calif., Feb. 3 - iShares Trust plans to launch another fixed-income target date exchange-traded fund, the iSharesBond 2017 Corporate Term ETF, according to an N-1A filing with the Securities and Exchange Commission.

The new ETF will take its position within its iShares term ETF family, which includes 2016, 2018, 2019, 2020 and 2023 funds.

The fund will seek to track the investment results of the Barclays 2017 Maturity Corporate index, which is composed of dollar-denominated, investment-grade corporate bonds maturing after March 31, 2016 and before April 1, 2017.

The fund will initially invest in the securities that satisfy the criteria of the Barclays 2017 Maturity Corporate index, but in the future may also invest in one or more underlying funds that themselves seek investment results corresponding to their own underlying index. The underlying funds will primarily consist of other iShares funds. Investments may also include other ETFs, U.S. government securities, short-term paper, cash and cash equivalents.

The fund is a term fund that will terminate on or about March 31, 2017, at which time it will distribute its remaining net assets to shareholders.

According to a previous press release, the iSharesBond corporate term ETF products offer investors access to a diversified pool of investment-grade, corporate credit securities with a defined maturity date, daily liquidity and price transparency.

For investors who are concerned about rising interest rates, the funds' rate sensitivity will decline through the life of the ETFs. If held until maturity, they will offer a yield that is similar to the yield to maturity of the underlying bonds held in the ETF.

James Mauro and Scott Radell will be the portfolio managers.

The ticker symbol and management fees for the 2017 fund have not yet been determined.

San Francisco-based BlackRock Fund Advisors, a wholly owned indirect subsidiary of BlackRock, Inc., will act as the investment adviser to the fund.

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