iShares® iBonds® Oct 2024 Term TIPS ETF Nears Final Distribution Date
BlackRock has announced the planned termination of the iShares® iBonds® Oct 2024 Term TIPS ETF (IBIA). The fund's last trading day and final NAV calculation date is set for October 15, 2024, with liquidation scheduled for October 18, 2024. This aligns with the design of iBonds ETFs, which are structured to mature like individual bonds during a specific window.
As the ETF approaches its final distribution date, it will transition from holding bonds to short-term instruments and cash. Shareholders can expect to receive liquidation proceeds around the liquidation date, subject to their brokerage's processes. BlackRock emphasizes that other iBonds ETFs across various bond types remain available, offering investors tools for building bond ladders and managing interest rate risk in rising rate environments.
BlackRock ha annunciato la pianificazione della cessazione dell'iShares® iBonds® Oct 2024 Term TIPS ETF (IBIA). L'ultimo giorno di negoziazione del fondo e la data finale di calcolo del NAV sono fissati per il 15 ottobre 2024, con la liquidazione programmata per il 18 ottobre 2024. Ciò è in linea con la progettazione degli ETF iBonds, che sono strutturati per scadere come obbligazioni individuali durante una finestra specifica.
Man mano che l'ETF si avvicina alla sua data di distribuzione finale, passerà dal mantenere obbligazioni a strumenti a breve termine e liquidità. Gli azionisti possono aspettarsi di ricevere i proventi della liquidazione intorno alla data di liquidazione, soggetti ai processi delle loro società di intermediazione. BlackRock sottolinea che altri ETF iBonds di vari tipi di obbligazioni rimangono disponibili, offrendo agli investitori strumenti per costruire scalette di obbligazioni e gestire il rischio dei tassi d'interesse in ambienti di tasso crescente.
BlackRock ha anunciado la finalización planeada del iShares® iBonds® Oct 2024 Term TIPS ETF (IBIA). El último día de negociación del fondo y la fecha de cálculo final del NAV están programados para el 15 de octubre de 2024, con la liquidación prevista para el 18 de octubre de 2024. Esto se alinea con el diseño de los ETFs iBonds, que están estructurados para madurar como bonos individuales durante una ventana específica.
A medida que el ETF se acerca a su fecha de distribución final, hará la transición de mantener bonos a instrumentos a corto plazo y efectivo. Los accionistas pueden esperar recibir los ingresos de liquidación alrededor de la fecha de liquidación, sujetos a los procesos de su corredor. BlackRock enfatiza que otros ETFs de iBonds de varios tipos de bonos siguen disponibles, ofreciendo a los inversores herramientas para construir escaleras de bonos y gestionar el riesgo de tasas de interés en entornos de tasas crecientes.
블랙록은 iShares® iBonds® Oct 2024 Term TIPS ETF (IBIA)의 종료 계획을 발표했습니다. 이 펀드의 마지막 거래일과 최종 NAV 계산 날짜는 2024년 10월 15일로 설정되어 있으며, 청산 날짜는 2024년 10월 18일로 예정되어 있습니다. 이는 iBonds ETF의 설계와 일치하며, 특정 기간 동안 개별 채권처럼 만기가 설정되어 있습니다.
ETF가 최종 분배 날짜에 가까워짐에 따라, 채권 보유에서 단기 금융상품과 현금으로 전환할 것입니다. 주주들은 청산 날짜 즈음에 청산 수익금을 받을 것으로 예상할 수 있으며, 이는 각자의 중개사의 절차에 따라 다를 수 있습니다. 블랙록은 여러 종류의 채권에 대한 다른 iBonds ETF가 여전히 이용 가능하다고 강조하며, 투자자들에게 채권 사다리를 구축하고 금리 상승 환경에서의 금리 리스크를 관리할 수 있는 도구를 제공합니다.
BlackRock a annoncé la cessation prévue de l'iShares® iBonds® Oct 2024 Term TIPS ETF (IBIA). Le dernier jour de négociation du fonds et la date de calcul final de la NAV sont fixés au 15 octobre 2024, avec une liquidation prévue pour le 18 octobre 2024. Cela est en accord avec la conception des ETF iBonds, qui sont structurés pour arriver à maturité comme des obligations individuelles pendant une fenêtre spécifique.
À l'approche de la date de distribution finale de l'ETF, celui-ci va passer de la détention d'obligations à des instruments à court terme et de la liquidité. Les actionnaires peuvent s'attendre à recevoir les produits de liquidation autour de la date de liquidation, sous réserve des processus de leur courtier. BlackRock souligne que d'autres ETF iBonds de divers types d'obligations restent disponibles, offrant aux investisseurs des outils pour construire des échelles d'obligations et gérer le risque de taux d'intérêt dans un environnement de taux croissants.
BlackRock hat die geplante Beendigung des iShares® iBonds® Oct 2024 Term TIPS ETF (IBIA) angekündigt. Der letzte Handelstag des Fonds und das Datum der endgültigen NAV-Berechnung sind auf den 15. Oktober 2024 festgelegt, mit einer Liquidation, die für den 18. Oktober 2024 geplant ist. Dies steht im Einklang mit dem Design der iBonds ETFs, die so strukturiert sind, dass sie in einem bestimmten Zeitrahmen wie individuelle Anleihen fällig werden.
Wenn sich der ETF dem finalen Ausschüttungsdatum nähert, wird er von der Halteposition in Anleihen auf kurzfristige Instrumente und Bargeld umschwenken. Aktionäre können erwarten, rund um das Liquidationsdatum Liquidationserlöse zu erhalten, wobei die Prozesse ihres Brokers zu beachten sind. BlackRock betont, dass andere iBonds ETFs verschiedener Anleihetypen weiterhin verfügbar sind und Investoren Werkzeuge zum Aufbau von Anleihenleitern und zum Management von Zinsrisiken in Zeiten steigender Zinsen bieten.
- Planned termination aligns with the ETF's designed maturity, demonstrating product consistency
- Shareholders will receive liquidation proceeds, ensuring a clear exit strategy
- Other iBonds ETFs remain available across various bond types, maintaining product line continuity
- Termination of IBIA reduces BlackRock's TIPS ETF offerings
- Investors in IBIA will need to find alternative investments after liquidation
Ticker |
Fund name |
Exchange |
Last day of trading |
Final NAV calculation date |
Liquidation date |
IBIA |
iShares® iBonds® Oct 2024 Term TIPS ETF |
NYSE Arca |
10/15/2024 |
10/15/2024 |
10/18/2024 |
iBonds ETFs are designed to cease trading and mature during a specific maturity window like an individual bond. Leading up to the ETF’s final distribution date, the bonds held by the iBonds ETF matures, and the ETF transitions into short-term instruments and cash. Shareholders will receive their proceeds from the liquidation on or around the listed liquidation date, based on their brokerage’s processes.
iBonds ETFs across treasuries, municipal bonds and both investment-grade and high-yield corporate credit remain available to investors. iShares iBonds ETFs can help market participants build bond ladders and manage interest rate risk in rising rate environments.
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Investing involves risk, including possible loss of principal.
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. 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. 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. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency and its return and yield will fluctuate with market conditions.
The iShares® iBonds® ETFs (“Funds”) will terminate on or about October or December 15 of the year in each Fund’s name. An investment in the Fund(s) is not guaranteed, and an investor may experience losses, including near or at the termination date. Unlike a direct investment in a bond that has a level coupon payment and a fixed payment at maturity, the Fund(s) will make distributions of income that vary over time. In the final months of each Fund’s operation, as the bonds it holds mature, its portfolio will transition to cash and cash-like instruments. As a result, its yield will tend to move toward prevailing money market rates, and may be lower than the yields of the bonds previously held by the Fund and lower than prevailing yields in the bond market. As the Fund approaches its termination date, its holdings of money market or similar funds may increase, causing the Fund to incur the fees and expenses of these funds.
Following the Fund’s termination date, the Fund will distribute substantially all of its net assets, after deduction of any liabilities, to then-current investors without further notice and will no longer be listed or traded. The Funds’ distributions and liquidation proceeds are not predictable at the time of investment and the Funds do not seek to return any predetermined amount.
The rate of Fund distribution payments may adversely affect the tax characterization of an investor’s returns from an investment in the Fund relative to a direct investment in bonds. If the amount an investor receives as liquidation proceeds upon the Fund’s termination is higher or lower than the investor’s cost basis, the investor may experience a gain or loss for tax purposes.
Prepared by BlackRock Investments, LLC, member FINRA.
This information should not be relied upon as research, investment advice, or a recommendation regarding any products, strategies, or any security in particular. This material is strictly for illustrative, educational, or informational purposes and is subject to change.
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MEDIA:
Paige Hofman
Paige.hofman@blackrock.com
212-810-3368
Rachel Waxman
Rachel.waxman@blackrock.com
212-814-5807
Source: BlackRock
FAQ
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