iShares Short Maturity Municipal Bond ETF gives details

By Toni Weeks

San Luis Obispo, Calif., Feb. 13 – iShares U.S. ETF Trust announced in an N-1A filing with the Securities and Exchange Commission details of its new short-term municipal exchange-traded fund.

The iShares Short Maturity Municipal Bond ETF seeks 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 normally invests 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.

The fund will trade on the BATS exchange under the symbol “MEAR.”

Scott Radell and William Henderson are the portfolio managers.

There are no shareholder fees. Including management fees of 0.25%, and taking into account the effects of a fee waiver agreement, total annual fund operating expenses are expected to be 0.25%.

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

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