IBMO Profile
The iShares iBonds Dec 2026 Term Muni Bond ETF is designed to provide investors with exposure to a portfolio of investment-grade municipal bonds that are scheduled to mature in December 2026. The fund invests at least 80% of its total assets in the securities that constitute its underlying index, ensuring a focus on bonds that align with its specific maturity and quality criteria. Additionally, the fund allocates at least 90% of its assets to fixed income securities that match the types and characteristics of those included in the index.
The underlying index tracks the performance of a selection of high-quality, tax-exempt U.S. municipal bonds that are scheduled to mature in 2026. To ensure the index reflects a reliable measure of performance, it excludes callable bonds that could be redeemed by issuers before their maturity date. This focus on non-callable bonds helps to provide a more stable and predictable income stream for investors, reducing the impact of early redemptions on the fund’s performance.
This ETF is strategically designed for investors seeking a defined maturity date, offering the potential benefits of tax-exempt income from municipal bonds while aligning with a specific investment horizon. By focusing on bonds maturing in December 2026, the fund provides a targeted approach to fixed income investing, appealing to those with a preference for managing interest rate risk and maintaining a predictable income schedule.
The iShares iBonds Dec 2026 Term Muni Bond ETF is particularly suited for investors looking for a relatively conservative investment with a known maturity date, offering a blend of income stability and tax advantages. Its emphasis on high-quality, non-callable municipal bonds helps ensure a reliable investment experience, catering to those who value both tax-exempt income and a clear investment timeline.
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