IBMQ Profile
The iShares iBonds Dec 2028 Term Muni Bond ETF is designed to provide investors with exposure to a diverse range of high-quality, tax-exempt municipal bonds, with maturities scheduled between January 1, 2028, and December 2, 2028. The fund seeks to track the performance of its underlying index, which includes both callable and non-callable U.S. municipal bonds rated investment-grade by S&P Dow Jones Indices LLC. This broad inclusion ensures that the fund captures a wide spectrum of opportunities within the municipal bond market.
The index focuses on bonds that are expected to mature or be redeemed within the specified timeframe, aligning with the fund's goal of providing a well-defined investment horizon. By including callable bonds, the index reflects a realistic view of the municipal bond market, where issuers might redeem bonds early, and non-callable bonds, which offer stability and predictability. This mix helps balance the potential for higher returns with the need for income stability.
Under normal market conditions, the fund commits at least 80% of its assets to securities that are part of the index. Additionally, it invests at least 90% of its assets in fixed-income securities similar to those in the index, ensuring close tracking of the fund’s performance relative to its benchmark. This high degree of alignment allows investors to benefit from the specific characteristics of the index while maintaining a diversified exposure to municipal bonds.
The iShares iBonds Dec 2028 Term Muni Bond ETF is well-suited for investors seeking predictable income from a portfolio of municipal bonds with a defined maturity date. Its investment approach offers the advantage of tax-exempt income while managing interest rate risk and providing a clear timeline for bond maturities. This ETF is particularly attractive to those who want to plan their financial future with a reliable income source and a set maturity date, combining the benefits of stable returns with the tax advantages of municipal bonds.
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