IBMP Profile
The iShares iBonds Dec 2027 Term Muni Bond ETF aims to provide investors with access to a portfolio of high-quality, tax-exempt municipal bonds set to mature in December 2027. The fund’s strategy involves investing at least 80% of its assets in securities that are part of its underlying index. This index exclusively tracks investment-grade municipal bonds, as classified by S&P Dow Jones Indices LLC, ensuring a focus on bonds with robust credit ratings and reliable income streams.
The index is designed to measure the performance of non-callable municipal bonds that are scheduled to mature in 2027. By excluding callable bonds those that issuers can redeem before maturity the index and, consequently, the fund, aim to offer a stable and predictable income source. This approach mitigates the risk of early redemption, which can affect the fund's return and disrupt income expectations.
The fund allocates at least 90% of its assets to fixed-income securities that match the characteristics of those included in the underlying index. This ensures that the fund remains closely aligned with its benchmark, providing investors with a precise match to the index's performance. The focus on December 2027 maturities allows investors to plan their investments with a clear timeline, benefiting from the specific maturity date.
The iShares iBonds Dec 2027 Term Muni Bond ETF is ideal for investors seeking a defined maturity date with the added benefit of tax-exempt income from high-grade municipal bonds. Its investment strategy offers a blend of predictable returns and tax advantages, catering to those who prioritize stable income and a set investment horizon. The fund’s structure is particularly advantageous for individuals looking to align their investment portfolios with future financial goals while minimizing interest rate and reinvestment risks.
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