IBDW | iShares iBonds Dec 2031 Term Corporate ETF

IBDW ISSUER

The BlackRock-advised Funds, specifically the iShares iBonds fixed maturity series, encompass a term fund known as IBDW, which aims to achieve its investment objective by primarily investing in component securities of the Bloomberg December 2031 Maturity Corporate Index, also known as the Underlying Index. Alongside corporate bonds, the fund may allocate its assets into other instruments such as exchange-traded funds (ETFs), U.S. government securities, short-term paper, cash, and cash equivalents. Scheduled to terminate around December 15, 2031, the fund operates without a predetermined return at maturity or periodic distributions. The Underlying Index, composed of U.S. dollar-denominated, investment-grade corporate bonds maturing between January 1, 2031, and December 15, 2031, reflects a significant portion of consumer staples and financials industries as of October 31, 2023. The index encompasses both U.S. and non-U.S. corporate issuers with specific eligibility criteria for inclusion. Managed through an indexing approach, the fund maintains a representative sampling strategy to mirror the performance of the Underlying Index. With at least 80% of its assets invested in Underlying Index instruments, the fund may also utilize futures, options, and swaps contracts, as well as fixed income securities not included in the index. As the fund approaches maturity, its holdings transition to cash and cash equivalents, aligning with its plan of liquidation. The Fund's concentration in industries mirrors that of the Underlying Index, adhering to industry concentration policies.

IBDW DIVIDEND

IBDW, a term fund within the iShares iBonds fixed maturity series advised by BlackRock, does not operate with a traditional dividend structure. Instead, its investment objective revolves around tracking the performance of the Bloomberg December 2031 Maturity Corporate Index, focusing on corporate bonds and other fixed income securities. As such, investors should not anticipate regular dividend payments from IBDW. Instead, the fund aims to generate returns primarily through capital appreciation and interest income from its underlying investments. This approach aligns with the fund's strategy of maintaining a portfolio of fixed income securities until its termination date, around December 15, 2031, at which point it distributes its remaining net assets to shareholders pursuant to a plan of liquidation.

IBDW TRACKING

IBDW, a term fund within the iShares iBonds fixed maturity series advised by BlackRock, employs a tracking strategy to mirror the performance of the Bloomberg December 2031 Maturity Corporate Index, its underlying benchmark. Through this approach, the fund seeks to replicate the investment results of the index before fees and expenses. Managed through an indexing approach, IBDW utilizes a representative sampling strategy, investing in a subset of securities that collectively exhibit similar investment characteristics to those of the Underlying Index. By maintaining at least 80% of its assets invested in component instruments of the Underlying Index, IBDW endeavors to closely match the index's returns over time. This strategy aims to provide investors with exposure to a diversified portfolio of U.S. dollar-denominated, investment-grade corporate bonds while minimizing tracking error relative to the benchmark. Additionally, the fund may use futures, options, and swaps contracts to help track the Underlying Index's performance efficiently. Through these strategies, IBDW strives to offer investors a reliable means of accessing the targeted fixed income market segment until its scheduled termination date, around December 15, 2031.

IBDW CORRELATION

IBDW, a term fund managed within the iShares iBonds fixed maturity series and advised by BlackRock, maintains a correlation with the Bloomberg December 2031 Maturity Corporate Index, its underlying benchmark. This correlation signifies the degree to which the fund's returns move in tandem with those of the index. Through its tracking strategy, IBDW endeavors to closely replicate the performance of the Underlying Index before fees and expenses, aiming to achieve a high correlation with the index over time. By investing primarily in component securities of the Underlying Index and utilizing representative sampling methods, the fund seeks to mirror the investment characteristics of the index, including duration, credit quality, and sector exposure. Consequently, investors can expect IBDW's returns to exhibit a strong positive correlation with those of the Bloomberg December 2031 Maturity Corporate Index, providing a reliable means of gaining exposure to the specified fixed income market segment until its scheduled termination date, around December 15, 2031.

IBDW SECTOR

IBDW, a term fund within the iShares iBonds fixed maturity series advised by BlackRock, maintains sector exposure primarily aligned with the composition of the Bloomberg December 2031 Maturity Corporate Index, its underlying benchmark. As of October 31, 2023, the index's sector composition is dominated by securities from the consumer staples and financials industries or sectors. This sector allocation reflects the investment-grade corporate bonds included in the Underlying Index, which are scheduled to mature between January 1, 2031, and December 15, 2031. By investing in component securities of the Underlying Index and adhering to sector weightings, IBDW aims to provide investors with exposure to a diversified portfolio of U.S. dollar-denominated, investment-grade corporate bonds while aligning with the index's sector composition. This approach ensures that the fund's sector exposure closely mirrors that of the benchmark, enabling investors to access a balanced allocation within the specified fixed income market segment until its planned termination date, around December 15, 2031.

IBDW EXPOSURE

IBDW, a term fund within the iShares iBonds fixed maturity series advised by BlackRock, offers exposure primarily to U.S. dollar-denominated, investment-grade corporate bonds through its investment strategy. By investing in component securities of the Bloomberg December 2031 Maturity Corporate Index, the fund aims to replicate the investment results of the index before fees and expenses. This strategy provides investors with exposure to a diversified portfolio of fixed income securities scheduled to mature between January 1, 2031, and December 15, 2031. With a focus on securities issued by companies in the consumer staples and financials industries or sectors, IBDW aims to provide investors with exposure to sectors exhibiting stable performance characteristics. Through its tracking approach, the fund seeks to offer investors a reliable means of accessing the targeted fixed income market segment until its scheduled termination date, around December 15, 2031, providing exposure to a balanced allocation within the investment-grade corporate bond market.