iShares Short Maturity Municipal Bond ETF plans launch

By Toni Weeks

San Luis Obispo, Calif., Sept. 5 – iShares U.S. ETF Trust announced in an N-1A filing with the Securities and Exchange Commission the coming launch of a new municipal exchange-traded fund.

The iShares Short Maturity Municipal Bond ETF will seek to maximize tax-free current income by investing, under normal circumstances, at least 80% of its net assets in municipal securities whose interest is exempt from U.S. federal income taxes and the federal alternative minimum tax. The fund will normally invest in dollar-denominated investment-grade, short-term, fixed- and floating-rate municipal securities with remaining maturities of five years or less. Generally, the fund’s effective duration will be 1.2 years or less and is not expected to exceed 1.5 years.

Scott Radell and William Henderson will be the portfolio managers.

Management fees and the ticker symbol have not yet been determined.

San Francisco-based BlackRock Fund Advisors will serve as the fund’s investment adviser.

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