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BlackRock Bolsters Municipal Bond Suite with Launch of High Yield Muni ETF

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BlackRock has announced the conversion of its High Yield Municipal Fund into the iShares® High Yield Muni Active ETF (HIMU), aiming to maximize federal tax-exempt current income and capital appreciation through high-yield municipal securities investments. The ETF maintains identical investment objectives as its predecessor mutual fund, which has delivered top quartile performance over multiple periods since its 2006 launch.

The fund leverages BlackRock's Municipal Bond Group, which manages over $182 billion in assets across diverse strategies. The conversion aligns with BlackRock's broader active ETF strategy, with the company managing $37 billion across 50 active ETFs in the U.S. BlackRock projects global active ETF assets to reach $4 trillion by 2030, up from $900 billion through June 2024.

BlackRock ha annunciato la conversione del suo High Yield Municipal Fund nell'iShares® High Yield Muni Active ETF (HIMU), con l'obiettivo di massimizzare il reddito attuale esente da tasse federali e l'apprezzamento del capitale attraverso investimenti in titoli municipali ad alto rendimento. L'ETF mantiene gli stessi obiettivi di investimento del suo fondo comune predecessore, che ha fornito performance di alto livello in vari periodi dalla sua nascita nel 2006.

Il fondo sfrutta il gruppo di obbligazioni municipali di BlackRock, che gestisce oltre 182 miliardi di dollari in attivi attraverso diverse strategie. La conversione si allinea con la più ampia strategia di ETF attivi di BlackRock, con l'azienda che gestisce 37 miliardi di dollari attraverso 50 ETF attivi negli Stati Uniti. BlackRock prevede che gli attivi globali degli ETF attivi raggiungeranno 4 trilioni di dollari entro il 2030, rispetto ai 900 miliardi di dollari entro giugno 2024.

BlackRock ha anunciado la conversión de su High Yield Municipal Fund en el iShares® High Yield Muni Active ETF (HIMU), con el objetivo de maximizar el ingreso actual exento de impuestos federales y la apreciación de capital a través de inversiones en valores municipales de alto rendimiento. El ETF mantiene los mismos objetivos de inversión que su fondo mutuo predecesor, que ha ofrecido un rendimiento de primer cuartil en múltiples períodos desde su lanzamiento en 2006.

El fondo aprovecha el Grupo de Bonos Municipales de BlackRock, que gestiona más de 182 mil millones de dólares en activos a través de diversas estrategias. La conversión se alinea con la estrategia más amplia de ETF activos de BlackRock, con la compañía gestionando 37 mil millones de dólares en 50 ETF activos en los EE.UU. BlackRock proyecta que los activos globales de ETF activos alcanzarán 4 billones de dólares para 2030, en comparación con 900 mil millones de dólares hasta junio de 2024.

블랙록은 자신의 하이 수익 지방채 펀드를 iShares® 하이 수익 뮈니 액티브 ETF (HIMU)로 전환했다고 발표했습니다. 이는 연방 세금 면제 현재 소득과 자본 이익을 최대화하기 위해 고수익 지방채 투자에 주력하는 것을 목표로 합니다. ETF는 2006년 출범 이후 여러 기간 동안 1분위수 성과를 나타낸 이전의 뮤추얼 펀드와 동일한 투자 목표를 유지하고 있습니다.

이 펀드는 다양한 전략을 통한 1820억 달러 이상의 자산을 관리하는 블랙록의 지방채 그룹을 활용합니다. 전환은 블랙록의 더 넓은 액티브 ETF 전략과 일치하며, 회사는 미국에서 50개의 액티브 ETF를 통해 370억 달러를 관리하고 있습니다. 블랙록은 2030년까지 글로벌 액티브 ETF 자산이 4조 달러에 이를 것으로 예상하고 있으며, 이는 2024년 6월까지 9000억 달러에서 증가하는 것입니다.

BlackRock a annoncé la conversion de son High Yield Municipal Fund en iShares® High Yield Muni Active ETF (HIMU), visant à maximiser le revenu actuel exonéré d'impôts fédéraux et l'appréciation du capital à travers des investissements dans des titres municipaux à haut rendement. L'ETF conserve les mêmes objectifs d'investissement que son fonds commun prédécesseur, qui a délivré des performances de premier quartile sur plusieurs périodes depuis son lancement en 2006.

Le fonds tire parti du groupe d'obligations municipales de BlackRock, qui gère plus de 182 milliards de dollars d'actifs à travers diverses stratégies. La conversion s'inscrit dans la stratégie plus large de BlackRock pour les ETF actifs, la société gérant 37 milliards de dollars à travers 50 ETF actifs aux États-Unis. BlackRock prévoit que les actifs mondiaux des ETF actifs atteindront 4 billions de dollars d'ici 2030, contre 900 milliards de dollars en juin 2024.

BlackRock hat die Umwandlung seines High Yield Municipal Fund in den iShares® High Yield Muni Active ETF (HIMU) angekündigt, mit dem Ziel, das steuerfreie aktuelle Einkommen und die Kapitalwertsteigerung durch Investitionen in hochverzinsliche Kommunalanleihen zu maximieren. Der ETF verfolgt identische Anlageziele wie sein Vorgängerfonds, der seit seiner Einführung im Jahr 2006 eine Spitzenleistung im oberen Quartil über mehrere Perioden geliefert hat.

Der Fonds nutzt die Kommunalanleihe-Gruppe von BlackRock, die über 182 Milliarden Dollar an Vermögenswerten in verschiedenen Strategien verwaltet. Die Umwandlung steht im Einklang mit der breiteren Strategie von BlackRock für aktive ETFs, wobei das Unternehmen 37 Milliarden Dollar über 50 aktive ETFs in den USA verwaltet. BlackRock prognostiziert, dass die globalen aktiven ETF-Vermögenswerte bis 2030 4 Billionen Dollar erreichen werden, gegenüber 900 Milliarden Dollar bis Juni 2024.

Positive
  • Top quartile performance across one-, five-, ten- and fifteen-year periods
  • Backed by substantial resources with $182 billion in municipal bond assets under management
  • Maintains tax-exempt income benefits while offering greater trading flexibility through ETF structure
Negative
  • None.

Insights

BlackRock's strategic conversion of their High Yield Municipal Fund into the iShares High Yield Muni Active ETF (HIMU) marks a pivotal development in the municipal bond market. The timing is particularly advantageous, coinciding with a higher interest rate environment that presents enhanced yield opportunities in the municipal sector.

The ETF structure offers several key advantages for municipal bond investors: greater intraday liquidity, potentially more tax efficiency through the creation/redemption mechanism and enhanced transparency in holdings and pricing. These benefits are particularly valuable in the high-yield municipal space, where liquidity can be challenging in traditional mutual fund formats.

The fund's credentials are impressive, with top quartile performance across one-, five-, ten- and fifteen-year periods through December 2023. This track record, combined with BlackRock's municipal bond management expertise spanning $182 billion in assets, positions HIMU as a formidable offering in the high-yield municipal ETF landscape.

This conversion aligns with BlackRock's broader strategic vision for active ETFs, where they project the global market to reach $4 trillion by 2030, representing a 344% increase from mid-2024 levels. The move strengthens BlackRock's position in both the municipal bond and active ETF markets, potentially capturing increased investor interest in tax-efficient income solutions.

The launch of HIMU represents a strategic masterclass in product evolution, showcasing BlackRock's ability to adapt to changing market dynamics while maintaining their investment edge. This conversion is particularly noteworthy as it preserves the successful investment strategy while enhancing accessibility through the ETF wrapper.

BlackRock's current $37 billion in active ETF assets across 50 products positions them well to capitalize on the projected growth in this segment. The expansion of their municipal bond ETF suite demonstrates their commitment to providing comprehensive fixed-income solutions, particularly in tax-advantaged strategies where they hold significant expertise.

The timing of this launch is strategic, as the active ETF market is experiencing rapid growth and evolution. BlackRock's projection of $4 trillion in global active ETF assets by 2030 suggests they anticipate substantial market expansion and are positioning themselves to capture a significant share of this growth.

Marks completion of the conversion of the BlackRock High Yield Municipal Fund into the iShares High Yield Muni Active ETF

NEW YORK--(BUSINESS WIRE)-- Today, BlackRock announced the conversion of the BlackRock High Yield Municipal Fund into an active ETF, creating the iShares® High Yield Muni Active ETF (CBOE: HIMU). HIMU harnesses the expertise of BlackRock’s Municipal Bond Group to provide more choice and flexibility to clients seeking high yield, tax-exempt solutions in the convenience of an ETF.

“Today’s higher interest rate environment provides a generational opportunity to capture income, particularly in the municipal bond market,” said Pat Haskell, Head of the Municipal Bond Group at BlackRock. “Through the ETF wrapper, HIMU aims to take advantage of the attractive yield levels and strong credit quality in municipal bonds, delivering alpha to our clients in an efficient and transparent manner.”

The new ETF seeks to maintain identical investment objectives and fundamental investment policies as its predecessor mutual fund. HIMU aims to maximize federal tax-exempt current income and capital appreciation by investing in high yield municipal securities across a variety of sectors. The mutual fund was launched in 2006 and delivered top quartile performance over the one-, five-, ten- and fifteen-year periods as of December 31, 2024.1

HIMU leverages the scale of BlackRock’s Municipal Bond Group, which manages over $182 billion in assets across a wide range of diversified strategies, including regions, states, local governments, sectors, sub-sectors and issuers.2

iShares® High Yield Muni Active ETF

 

Ticker

HIMU

Performance Benchmark

A customized weighted index comprised of 20% Bloomberg Municipal Bond Rated Baa Index/60% Bloomberg Municipal Bond: High Yield (non-Investment Grade) Total Return Index/20% Bloomberg Municipal Investment Grade ex BBB (the “High Yield Customized Reference Benchmark”)

Portfolio Managers

Pat Haskell, Kevin Maloney, Ryan McDonald, Phillip Soccio​, Walter O’Connor

Furthers BlackRock’s Commitment to Active ETFs

“The growth of active ETFs is driving innovation and unlocking new opportunities for investors globally,” said Jorge del Valle Papic, Americas Head of Active Investments within Global Product Solutions at BlackRock. “This conversion underscores the strength of our product platform and our dedication to offering access to BlackRock’s premier active management capabilities through an investment vehicle that aligns with our clients’ evolving needs.”

BlackRock projects that global active ETF assets under management will surge to $4 trillion by 2030, a more than four-fold increase from $900 billion through June 2024.3 BlackRock manages $37 billion in assets across 50 active ETFs in the U.S.4

About BlackRock

BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate | Twitter: @blackrock | LinkedIn: www.linkedin.com/company/blackrock

About iShares

iShares unlocks opportunity across markets to meet the evolving needs of investors. With more than twenty years of experience, a global line-up of 1500+ exchange traded funds (ETFs) and $4.2 trillion in assets under management as of December 31, 2024, iShares continues to drive progress for the financial industry. iShares funds are powered by the expert portfolio and risk management of BlackRock.

Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses which may be obtained by visiting www.iShares.com or www.blackrock.com. Read the prospectus carefully before investing.

Investing involves risks, including possible loss of principal.

Prior to close of business on 02/07/2025, the Fund operated as an open-end mutual fund. The Fund has an identical investment objective and substantially similar investment strategies and investment risk profiles as the predecessor mutual fund.

Performance for the periods prior to 02/10/2025 discussed above is based upon the results of the predecessor mutual fund, the BlackRock High Yield Municipal Fund. Please refer to the current prospectus for further information.

Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in the value of debt securities. Credit risk refers to the possibility that the debt issuer will not be able to make principal and interest payments.

There may be less information on the financial condition of municipal issuers than for public corporations. The market for municipal bonds may be less liquid than for taxable bonds. Some investors may be subject to federal or state income taxes or the Alternative Minimum Tax (AMT). Capital gains distributions, if any, are taxable.

Municipal securities risks include the ability of the issuer to repay the obligation, the relative lack of information about certain issuers of municipal securities, and the possibility of future legislative changes which could affect the market for and value of municipal securities. Budgetary constraints of local, state, and federal governments upon which the issuers may be relying for funding may also impact municipal securities.

Non-investment-grade debt securities (high-yield/junk bonds) may be subject to greater market fluctuations, risk of default or loss of income and principal than higher-rated securities.

Funds that concentrate investments in specific industries, sectors, markets or asset classes may underperform or be more volatile than other industries, sectors, markets or asset classes and than the general securities market.

Transactions in shares of ETFs may result in brokerage commissions and will generate tax consequences. All regulated investment companies are obliged to distribute portfolio gains to shareholders. Diversification and asset allocation may not protect against market risk or loss of principal.

Actively managed funds do not seek to replicate the performance of a specified index, may have higher portfolio turnover, and may charge higher fees than index funds due to increased trading and research expenses.

There can be no assurance that an active trading market for shares of an ETF will develop or be maintained.

Prepared by BlackRock Investments, LLC, member FINRA.

©2025 BlackRock, Inc. or its affiliates. All Rights Reserved. BLACKROCK and iSHARES are trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.

_______________________________
1 Past performance does not guarantee future results; BlackRock, as of 12/31/2024; Morningstar, as of 1/30/2025. The Morningstar peer group is the High Yield Muni fund category comprised of 193 funds for the 1-year period, 175 funds for the 5-year period, 119 funds for the 10-year period, and 80 funds for the 15-year period. The Morningstar category average is designed to represent the average return of funds within a category for a period.
2 BlackRock, as of 12/31/2024.
3 BlackRock, as of March 31, 2024. Estimates are for global figures and include 2027 and 2030 scenario calculations based on proprietary research by BlackRock Global Product Solutions. Subject to change. The figures are for illustrative purposes only and there is no guarantee the projections will come to pass.
4 BlackRock, as of 1/28/2025.

Media

Jenna Merchant

Jenna.merchant@blackrock.com

914-329-5684

Caitlyn Guntle

Caitlyn.guntle@blackrock.com

212-810-5528

Source: BlackRock

FAQ

What is the ticker symbol for BlackRock's new High Yield Muni Active ETF (BLK)?

The ticker symbol for BlackRock's new High Yield Muni Active ETF is HIMU, trading on CBOE.

How much does BlackRock manage in active ETF assets as of 2024 (BLK)?

BlackRock manages $37 billion in assets across 50 active ETFs in the U.S.

What is BlackRock's projection for global active ETF assets by 2030 (BLK)?

BlackRock projects global active ETF assets to reach $4 trillion by 2030, up from $900 billion through June 2024.

How has the original BlackRock High Yield Municipal Fund performed before converting to HIMU (BLK)?

The fund has delivered top quartile performance over the one-, five-, ten- and fifteen-year periods as of December 31, 2024.

What is the investment objective of BlackRock's new HIMU ETF (BLK)?

HIMU aims to maximize federal tax-exempt current income and capital appreciation by investing in high yield municipal securities across various sectors.

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