iShares rolls out details for four fixed-income corporate term ETFs

By Toni Weeks

San Luis Obispo, June 5 - iShares Trust announced details for its latest four fixed-income target date exchange-traded funds, according to separate N-1A filings with the Securities and Exchange Commission.

The new ETFs include the iSharesBond 2016 Corporate Term ETF, the iSharesBond 2018 Corporate Term ETF, the iSharesBond 2020 Corporate Term ETF and the iSharesBond 2023 Corporate Term ETF.

The funds will each seek to track the performance before fees and expenses, of an index that measures the performance of certain dollar-denominated, investment-grade corporate bonds.

The underlying indexes are the Barclays 2016 Maturity Corporate index for the 2016 fund, the Barclays 2018 Maturity Corporate index for the 2018 fund, the Barclays 2020 Maturity Corporate index for the 2020 fund and the Barclays 2023 Maturity Corporate index for the 2023 fund.

The 2016 index includes bonds that mature after March 31, 2015 and before April 1, 2016, the 2018 index includes bonds that mature after March 31, 2017 and before April 1, 2018, the 2020 index includes bonds that mature after March 31, 2019 and before April 1, 2020, and the 2023 index includes bonds that mature after March 31, 2022 and before April 1, 2023.

Each fund seeks its investment objective by investing in the securities of one of more underlying funds that in turn seek investment results corresponding to their own underlying indexes and individual securities that satisfy the criteria of the benchmark index. The funds invest in a combination of fixed-income securities and underlying funds, primarily other iShares funds, and may also invest in other ETFs, U.S. government securities, short-term paper, cash and cash equivalents.

Each fund is a term fund that will terminate on March 31 of its target date year, at which time it will distribute its remaining net assets to shareholders.

James Mauro and Scott Radell comprise the portfolio management teams of the four funds.

The New York Stock Exchange Arca ticker symbols for the 2016, 2018, 2020 and 2023 funds are IBDA, IBDB, IBDC and IBDD, respectively.

Total annual fund operating expenses for each fund will be 0.1%, which consists solely of a management fee.

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

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