IBMR Profile
The iShares iBonds Dec 2029 Term Muni Bond ETF is crafted to provide targeted exposure to a portfolio of high-quality, tax-exempt municipal bonds with maturities extending to the end of 2029. The fund aims to track its underlying index, which comprises municipal bonds issued by U.S. state, federal district (including the District of Columbia), and local governments or agencies. These bonds are selected for their interest payments, which are exempt from U.S. federal income taxes and the federal alternative minimum tax (AMT), offering investors a tax-advantaged income stream.
The underlying index encompasses bonds that meet stringent criteria for credit quality and tax-exemption, focusing on those that are both investment-grade and issued by entities within the U.S. municipal sector. This ensures that the ETF's holdings are aligned with the fund's objective of providing reliable, tax-free income while mitigating exposure to higher-risk securities. The index specifically excludes callable bonds, thus providing a more predictable income stream and reducing the risk of early redemption that could impact returns.
In normal market conditions, the fund commits at least 80% of its assets to securities included in the underlying index, ensuring that its performance closely mirrors that of the benchmark. The funds investment strategy emphasizes adherence to the indexs criteria, investing predominantly in the municipal bonds that form the core of its portfolio. This approach facilitates precise tracking of the index and ensures the fund maintains its focus on high-quality, tax-exempt municipal bonds.
The iShares iBonds Dec 2029 Term Muni Bond ETF is designed for investors seeking stable, tax-exempt income with a defined investment horizon. By concentrating on bonds maturing in 2029, the ETF provides a clear timeframe for income and capital return, making it suitable for those planning their financial strategies with a long-term perspective. Its non-diversified nature allows for a concentrated focus on municipal bonds, aligning with the needs of investors looking for specific tax benefits and a predictable investment outcome.
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