2021 PROSPECTUS - BLACKROCK
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Table of Contents
MARCH 1, 2021
(as revised April 1, 2021)
2021 Prospectus
iShares Trust
• iShares iBonds 2022 Term High Yield and Income ETF* | IBHB | CBOE BZX
The SEC has not approved or disapproved these securities or passed upon the
adequacy of this prospectus. Any representation to the contrary is a criminal offense.
*The iShares iBonds 2022 Term High Yield and Income ETF may also conduct business
as the iBonds 2022 Term High Yield and Income ETF.Table of Contents
iShares®
iShares Trust
iShares U.S. ETF Trust
Supplement dated August 24, 2021 (the “Supplement”)
to the Summary Prospectus (the “Summary Prospectus”),
Prospectus (the “Prospectus”) and
Statement of Additional Information (“SAI”)
for each of the Funds listed in Appendix A (each, a “Fund”)
The information in this Supplement updates information in, and
should be read in conjunction with, each Fund’s Summary
Prospectus, Prospectus and SAI.
References to the name of the Underlying Index in the Summary
Prospectus, Prospectus, and SAI for each Fund except for the
BlackRock Short Maturity Bond ETF and BlackRock Short Maturity
Municipal Bond ETF are hereby revised as follows:
Former Underlying Index Name New Underlying Index Name
Bloomberg Barclays 2021 Term Bloomberg 2021 Term High
High Yield and Income Index Yield and Income Index
Bloomberg Barclays 2022 Term Bloomberg 2022 Term High
High Yield and Income Index Yield and Income Index
Bloomberg Barclays 2023 Maturity Bloomberg 2023 Maturity
Corporate Index Corporate Index
Bloomberg Barclays 2023 Maturity Bloomberg 2023 Maturity High
High Quality Corporate Index Quality Corporate Index
Bloomberg Barclays 2023 Term Bloomberg 2023 Term High
High Yield and Income Index Yield and Income Index
Bloomberg Barclays 2024 Term Bloomberg 2024 Term High
High Yield and Income Index Yield and Income Index
Bloomberg Barclays 2025 Term Bloomberg 2025 Term High
High Yield and Income Index Yield and Income Index
Bloomberg Barclays 2026 Term Bloomberg 2026 Term High
High Yield and Income Index Yield and Income Index
Bloomberg Barclays 2027 Term Bloomberg 2027 Term High
High Yield and Income Index Yield and Income Index
Bloomberg Barclays December Bloomberg December 2021
2021 Maturity Corporate Index Maturity Corporate Index
Bloomberg Barclays December Bloomberg December 2022
2022 Maturity Corporate Index Maturity Corporate IndexFormer Underlying Index Name New Underlying Index Name Bloomberg Barclays December Bloomberg December 2023 2023 Maturity Corporate Index Maturity Corporate Index Bloomberg Barclays December Bloomberg December 2024 2024 Maturity Corporate Index Maturity Corporate Index Bloomberg Barclays December Bloomberg December 2025 2025 Maturity Corporate Index Maturity Corporate Index Bloomberg Barclays December Bloomberg December 2026 2026 Maturity Corporate Index Maturity Corporate Index Bloomberg Barclays December Bloomberg December 2027 2027 Maturity Corporate Index Maturity Corporate Index Bloomberg Barclays December Bloomberg December 2028 2028 Maturity Corporate Index Maturity Corporate Index Bloomberg Barclays December Bloomberg December 2029 2029 Maturity Corporate Index Maturity Corporate Index Bloomberg Barclays December Bloomberg December 2030 2030 Maturity Corporate Index Maturity Corporate Index Bloomberg Barclays December Bloomberg December 2031 2031 Maturity Corporate Index Maturity Corporate Index Bloomberg Barclays Global Bloomberg Global Aggregate ex Aggregate ex USD 10% Issuer USD 10% Issuer Capped Capped (Hedged) Index (Hedged) Index Bloomberg Barclays MSCI Global Bloomberg MSCI Global Green Green Bond Select (USD Hedged) Bond Select (USD Hedged) Index Index Bloomberg Barclays MSCI US Bloomberg MSCI US Aggregate Aggregate ESG Focus Index ESG Focus Index Bloomberg Barclays MSCI US Bloomberg MSCI US Corporate Corporate 1-5 Year ESG Focus 1-5 Year ESG Focus Index Index Bloomberg Barclays MSCI US Bloomberg MSCI US Corporate Corporate ESG Focus Index ESG Focus Index Bloomberg Barclays MSCI US High Bloomberg MSCI US High Yield Yield Choice ESG Screened Index Choice ESG Screened Index Bloomberg Barclays MSCI US Bloomberg MSCI US Universal Universal Choice ESG Screened Choice ESG Screened Index Index Bloomberg Barclays U.S. Agency Bloomberg U.S. Agency Bond Bond Index Index
Former Underlying Index Name New Underlying Index Name Bloomberg Barclays U.S. CMBS Bloomberg U.S. CMBS (ERISA (ERISA Only) Index Only) Index Bloomberg Barclays U.S. Bloomberg U.S. Convertible Cash Convertible Cash Pay Bond > Pay Bond > $250MM Index $250MM Index Bloomberg Barclays U.S. Corporate Bloomberg U.S. Corporate Aaa - Aaa - A Capped Index A Capped Index Bloomberg Barclays U.S. Fixed Bloomberg U.S. Fixed Income Income Balanced Risk Index Balanced Risk Index Bloomberg Barclays U.S. GNMA Bloomberg U.S. GNMA Bond Bond Index Index Bloomberg Barclays U.S. Bloomberg U.S. Government/ Government/Credit Bond Index Credit Bond Index Bloomberg Barclays U.S. Bloomberg U.S. Intermediate Intermediate Government/Credit Government/Credit Bond Index Bond Index Bloomberg Barclays U.S. Treasury Bloomberg U.S. Treasury Inflation Protected Securities Inflation Protected Securities (TIPS) Index (Series-L) (TIPS) Index (Series-L) Bloomberg Barclays U.S. Treasury Bloomberg U.S. Treasury Inflation-Protected Securities Inflation-Protected Securities (TIPS) 0-5 Years Index (Series-L) (TIPS) 0-5 Years Index (Series-L) Bloomberg Barclays U.S. Universal Bloomberg U.S. Universal 10+ Year Index 10+ Year Index Bloomberg Barclays U.S. Universal Bloomberg U.S. Universal 1-5 Year Index 1-5 Year Index Bloomberg Barclays U.S. Universal Bloomberg U.S. Universal Index Index Bloomberg Barclays U.S. Aggregate Bloomberg U.S. Aggregate Bond Bond Index Index Bloomberg Barclays US Floating Bloomberg US Floating Rate Rate Note < 5 Years Index Note < 5 Years Index Bloomberg Barclays US High Yield Bloomberg US High Yield Fallen Fallen Angel 3% Capped Index Angel 3% Capped Index Bloomberg Barclays U.S. MBS Index Bloomberg U.S. MBS Index Bloomberg Barclays U.S. Treasury Bloomberg U.S. Treasury Floating Rate Bond Index Floating Rate Bond Index Bloomberg Barclays U.S. Universal Bloomberg U.S. Universal 5-10 Year Index 5-10 Year Index
References to the name of the benchmark index in the Summary Prospectus, Prospectus and SAI for each of the BlackRock Short Maturity Bond ETF and BlackRock Short Maturity Municipal Bond ETF are revised as follows: Former Benchmark Index Name New Benchmark Index Name Bloomberg Barclays Short-Term Bloomberg Short-Term Government/Corporate Index Government/Corporate Index Bloomberg Barclays Municipal Bloomberg Municipal Bond: Bond: 1 Year (1-2) Index 1 Year (1-2) Index
Appendix A
iShares Trust Funds
Supplement to the Summary Prospectus, Prospectus and SAI each
dated as of March 1, 2021:
iShares Core Total USD Bond Market ETF
iShares iBonds Mar 2023 Term Corporate ex-Financials ETF
Supplement to the Summary Prospectus and Prospectus both dated
as of March 1, 2021, and to the SAI dated as of March 1, 2021 (as
revised April 1, 2021):
iShares 0-5 Year TIPS Bond ETF
iShares Aaa - A Rated Corporate Bond ETF
iShares CMBS ETF
iShares Convertible Bond ETF
iShares Core 1-5 Year USD Bond ETF
iShares Core International Aggregate Bond ETF
iShares ESG Advanced High Yield Corporate Bond ETF
iShares Fallen Angels USD Bond ETF
iShares Global Green Bond ETF
iShares GNMA Bond ETF
iShares iBonds Dec 2021 Term Corporate ETF
iShares iBonds Dec 2022 Term Corporate ETF
iShares iBonds Dec 2023 Term Corporate ETF
iShares iBonds Dec 2024 Term Corporate ETF
iShares iBonds Dec 2025 Term Corporate ETF
iShares iBonds Dec 2026 Term Corporate ETF
iShares iBonds Dec 2027 Term Corporate ETF
iShares iBonds Dec 2028 Term Corporate ETF
iShares iBonds Dec 2029 Term Corporate ETF
iShares iBonds Dec 2030 Term Corporate ETF
iShares iBonds Mar 2023 Term Corporate ETF
iShares TIPS Bond ETF
iShares Treasury Floating Rate Bond ETF
iShares U.S. Fixed Income Balanced Risk Factor ETF
Supplement to the Summary Prospectus, Prospectus and SAI each
dated as of March 1, 2021 (as revised April 1, 2021):
iShares iBonds 2021 Term High Yield and Income ETF
iShares iBonds 2022 Term High Yield and Income ETF
iShares iBonds 2023 Term High Yield and Income ETF
iShares iBonds 2024 Term High Yield and Income ETF
iShares iBonds 2025 Term High Yield and Income ETFiShares iBonds 2026 Term High Yield and Income ETF
iShares Floating Rate Bond ETF
Supplement to the Summary Prospectus, Prospectus and SAI each
dated as of June 29, 2021:
iShares Agency Bond ETF
iShares Core 5-10 Year USD Bond ETF
iShares Core 10+ Year USD Bond ETF
iShares Core U.S. Aggregate Bond ETF
iShares ESG Advanced Total USD Bond Market ETF
iShares ESG Aware 1-5 Year USD Corporate Bond ETF
iShares ESG Aware U.S. Aggregate Bond ETF
iShares ESG Aware USD Corporate Bond ETF
iShares Government/Credit Bond ETF
iShares Intermediate Government/Credit Bond ETF
iShares MBS ETF
Supplement to the Summary Prospectus dated as of June 23, 2021,
Prospectus and SAI each dated as of June 15, 2021:
iShares iBonds Dec 2031 Term Corporate ETF
Supplement to the Summary Prospectus dated as of July 1, 2021 (as
revised July 7, 2021), Prospectus dated as of June 23, 2021 (as
revised July 7, 2021) and SAI dated as of June 23, 2021:
iShares iBonds 2027 Term High Yield and Income ETF
iShares U.S. ETF Trust Funds
Supplement to the Summary Prospectus and Prospectus both dated
as of March 1, 2021, and to the SAI dated as of March 1, 2021 (as
revised April 27, 2021):
BlackRock Short Maturity Bond ETF
BlackRock Short Maturity Municipal Bond ETF
If you have any questions, please call 1-800-iShares (1-800-474-2737).
iShares® is a registered trademark of BlackRock Fund Advisors and its affiliates.
IS-A-BBG-0821
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Table of Contents
Table of Contents
Fund Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-1
More Information About the Fund . . . . . . . . . 1
A Further Discussion of Principal Risks . . 2
A Further Discussion of Other Risks . . . . . . 16
Portfolio Holdings Information . . . . . . . . . . . . . 21
Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Shareholder Information . . . . . . . . . . . . . . . . . . . . 24
Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Financial Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Index Provider . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Disclaimers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
BLOOMBERG® is a trademark of Bloomberg Finance L.P. and its affiliates (collectively, “Bloomberg”).
BARCLAYS® is a trademark of Barclays Bank PLC (collectively with its affiliates, “Barclays”), used under license.
“Bloomberg Barclays 2022 Term High Yield and Income Index” is a trademark of Bloomberg and its licensors
and has been licensed for use for certain purposes by BlackRock Fund Advisors or its affiliates. iShares®,
iBonds® and BlackRock® are registered trademarks of BlackRock Fund Advisors and its affiliates. This Fund is
covered by U.S. Patent Nos. 8,438,100 and 8,655,770.
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iSHARES® iBONDS® 2022 TERM HIGH YIELD
AND INCOME ETF
Ticker: IBHB Stock Exchange: Cboe BZX
Investment Objective
The iShares iBonds 2022 Term High Yield and Income ETF (the “Fund”) seeks to track
the investment results of an index composed of U.S. dollar-denominated, high yield
and other income generating corporate bonds maturing in 2022.
Fees and Expenses
The following table describes the fees and expenses that you will incur if you buy, hold
and sell shares of the Fund. The investment advisory agreement between iShares Trust
(the “Trust”) and BlackRock Fund Advisors (“BFA”) (the “Investment Advisory
Agreement”) provides that BFA will pay all operating expenses of the Fund, except the
management fees, interest expenses, taxes, expenses incurred with respect to the
acquisition and disposition of portfolio securities and the execution of portfolio
transactions, including brokerage commissions, distribution fees or expenses, litigation
expenses and any extraordinary expenses. The Fund may incur “Acquired Fund Fees
and Expenses.” Acquired Fund Fees and Expenses reflect the Fund’s pro rata share of
the fees and expenses incurred by investing in other investment companies. The
impact of Acquired Fund Fees and Expenses is included in the total returns of the Fund.
Acquired Fund Fees and Expenses are not included in the calculation of the ratio of
expenses to average net assets shown in the Financial Highlights section of the Fund’s
prospectus (the “Prospectus”).
You may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
Annual Fund Operating Expenses
(ongoing expenses that you pay each year as a
percentage of the value of your investments)
Total Annual
Fund
Distribution Acquired Fund Total Annual Operating
and Fees Fund Expenses
Management Service (12b-1) Other and Operating After
Fees Fees Expenses 1 Expenses1,2 Expenses Fee Waiver1,2 Fee Waiver
0.35% None 0.00% 0.00% 0.35% (0.00)% 0.35%
1
The amount rounded to 0.00%.
2
BFA, the investment adviser to the Fund, has contractually agreed to waive a portion of its
management fees in an amount equal to the Acquired Fund Fees and Expenses, if any,
attributable to investments by the Fund in other funds advised by BFA or its affiliates through
the termination date of the Fund, on or about December 15, 2022. The contractual waiver may
be terminated prior to the Fund’s termination only upon the written agreement of the Trust
and BFA.
S-1Table of Contents
Example. This Example is intended to help you compare the cost of owning shares of
the Fund with the cost of investing in other funds. The Example assumes that you
invest $10,000 in the Fund for the time periods indicated and then sell all of your
shares at the end of those periods. Fund expenses (and any applicable waivers) are
calculated only through December 15, 2022 because the Fund is scheduled to cease
operations and liquidate by that date. The Example also assumes that your investment
has a 5% return each year and that the Fund’s operating expenses remain the same.
Although your actual costs may be higher or lower, based on these assumptions, your
costs would be:
1 Year Maturity
$36 $65
Portfolio Turnover. The Fund may pay remaining net assets to shareholders
transaction costs, such as commissions, pursuant to a plan of liquidation. The
when it buys and sells securities (or Fund does not seek to return any
“turns over” its portfolio). A higher predetermined amount at maturity or in
portfolio turnover rate may indicate periodic distributions. The Underlying
higher transaction costs and may result Index is composed of U.S. dollar-
in higher taxes when Fund shares are denominated, taxable, fixed-rate, high
held in a taxable account. These costs, yield (which are considered below
which are not reflected in the Annual investment-grade) and BBB or
Fund Operating Expenses or in the equivalently rated (as determined by
Example, affect the Fund’s Bloomberg Index Services Limited (the
performance. During the most recent “Index Provider” or “Bloomberg”))
fiscal year, the Fund’s portfolio turnover corporate bonds scheduled to mature
rate was 68% of the average value of its between January 1, 2022 and December
portfolio. 15, 2022, inclusive. Securities eligible
for inclusion in the Underlying Index are
Principal Investment selected from a universe of corporate
Strategies issuers (e.g., industrial, financial
The Fund seeks to meet its investment institutions, utilities) determined by
objective generally by investing in Bloomberg. As of October 31, 2020, a
component securities of the Bloomberg significant portion of the Underlying
Barclays 2022 Term High Yield and Index is represented by securities of
Income Index (the “Underlying Index”). companies in the communication
The Fund may also invest in other services, consumer cyclical and
exchange-traded funds (“ETFs”), U.S. financials industries or sectors. The
government securities, short-term components of the Underlying Index are
paper, cash and cash equivalents, likely to change over time.
including shares of money market funds The bonds in the Underlying Index have
advised by BFA or its affiliates. $250 million or more of outstanding
The Fund is a term fund that will face value at the time of inclusion. The
terminate on or about December 15, non-U.S. corporate issuers included in
2022, at which time it will distribute its the Underlying Index consist primarily of
S-2Table of Contents
corporate bonds issued by companies qualify for inclusion (due to, among
domiciled in developed countries. The other factors, sector reclassifications of
Fund will invest in non-U.S. issuers to issuers, changes in the credit rating of
the extent necessary for it to track the bonds included in the Underlying Index
Underlying Index. Each bond included in or rebalances to maintain issuer limits),
the Underlying Index must be registered or decline in value compared to a
with the SEC, have been exempt from reference point set at 2.5 years from
registration at issuance, or have been the Underlying Index’s term or (2) if,
offered pursuant to Rule 144A under the prior to the last 2.5 years remaining in
Securities Act of 1933, as amended (the the Underlying Index’s term, the market
“1933 Act”). Subject to the value of the high yield bonds in the
methodology of the Underlying Index Underlying Index declines below $30
discussed below, the securities in the billion, the Underlying Index will add
Underlying Index may carry a coupon BBB-rated bonds to maintain a $30
that steps-up according to a billion minimum market value for the
predetermined schedule (i.e., the Underlying Index. In the final year of the
interest rate paid on such securities will Underlying Index’s term, any principal
increase over time). The Underlying and interest paid by index constituents
Index will be subject to issuer limits of is treated as follows: (1) during the first
3%, with any excess redistributed six months of the final year, the
among the remaining constituents on a Underlying Index reinvests proceeds
pro-rata basis. pro-rata into the remaining bonds in the
The securities in the Underlying Index Underlying Index, and (2) during the last
are updated on the last calendar day of six months of the final year, proceeds
each month until six months before are not reinvested and are presumed to
maturity, with the last rebalance date on be held in cash while earning no
June 30, 2022. interest.
The Underlying Index consists of bonds Bonds with a clean price (i.e., the price
chosen from two sub-indices, the does not include accrued interest
Bloomberg Barclays U.S. High Yield between coupon payments) below $60
Index (the “High Yield Index”) and the at rebalance on or after April 1, 2021
Bloomberg Barclays U.S. Corporate are permanently excluded from the
Index (the “Corporate Index”), both of Underlying Index.
which are stripped of securities In addition, to be included in the
maturing outside of the maturity range Underlying Index, securities that are
defined above. BBB-rated bonds from rated by all three of the rating agencies
the Corporate Index will be introduced named below must be rated “high yield”
to the Underlying Index under the to be selected from the High Yield Index
following conditions: (1) in the last 2.5 and “BBB” to be selected from the
years but before the last 6 months of Corporate Index. The bonds from the
the Underlying Index’s term, the High Yield Index must have a rating
Underlying Index will introduce BBB- equal to or below “Ba1”/”BB+”/”BB+”
rated bonds (which are considered and above “CC”. The bonds from the
investment-grade) as constituent high Corporate Index must have a rating of
yield bonds (which are considered below “BBB” (or equivalent). The Index
investment-grade) are called, no longer Provider will use the middle rating of
S-3Table of Contents
Moody’s Investors Service, Inc. selected are expected to have, in the
(“Moody’s”), Standard & Poor’s® Global aggregate, investment characteristics
Ratings, a subsidiary of S&P Global (based on factors such as market value
(“S&P Global Ratings”) and Fitch and industry weightings), fundamental
Ratings, Inc. (“Fitch”); when a rating characteristics (such as return
from only two agencies is available, the variability, duration, maturity, credit
lower is used; when only one agency ratings and yield) and liquidity measures
rates a bond, that rating is used. similar to those of an applicable
The Fund is a series of the iShares underlying index. The Fund may or may
iBonds fixed maturity series of bond not hold all of the securities in the
ETFs sponsored by BlackRock, Inc. Underlying Index.
(“BlackRock”). The iShares iBonds fixed The Fund generally will invest at least
maturity series do not invest in U.S. 90% of its assets in the component
savings bonds or other U.S. government securities of the Underlying Index,
bonds (except to the extent the funds except during the last months of the
hold cash equivalent instruments Fund’s operations, as described below,
consistent with their investment and may invest up to 10% of its assets
objectives) and are not designed to in certain futures, options and swap
provide protection against inflation. contracts, cash and cash equivalents,
BFA uses a “passive” or indexing including shares of money market funds
approach to try to achieve the Fund’s advised by BFA or its affiliates
investment objective. Unlike many (“BlackRock Cash Funds”), as well as in
investment companies, the Fund does securities not included in the Underlying
not try to “beat” the index it tracks and Index, but which BFA believes will help
does not seek temporary defensive the Fund track the Underlying Index.
positions when markets decline or From time to time when conditions
appear overvalued. warrant, however, the Fund may invest
at least 80% of its assets in the
Indexing may eliminate the chance that component securities of the Underlying
the Fund will substantially outperform Index and may invest up to 20% of its
the Underlying Index but also may assets in certain futures, options and
reduce some of the risks of active swap contracts, cash and cash
management, such as poor security equivalents, including shares of
selection. Indexing seeks to achieve BlackRock Cash Funds, as well as in
lower costs and better after-tax securities not included in the Underlying
performance by aiming to keep portfolio Index, but which BFA believes will help
turnover low in comparison to actively the Fund track the Underlying Index.
managed investment companies.
The Fund seeks to track the investment
BFA uses a representative sampling results of the Underlying Index before
indexing strategy to manage the Fund. fees and expenses of the Fund. In the
“Representative sampling” is an last six months of operation, as the
indexing strategy that involves investing bonds held by the Fund mature, the
in a representative sample of securities proceeds will not be reinvested by the
that collectively has an investment Fund in bonds but instead will be held in
profile similar to that of an applicable cash and cash equivalents. To the
underlying index. The securities extent that the Fund invests in money
S-4Table of Contents
market or similar funds, it will incur the Summary of Principal Risks
fees and expenses of such funds. By
As with any investment, you could lose
December 15, 2022, the Underlying
all or part of your investment in the
Index is expected to consist almost
Fund, and the Fund’s performance could
entirely of cash acquired in this manner.
trail that of other investments. The Fund
On or around this date, the Fund will
is subject to certain risks, including the
wind up and terminate, and its net
principal risks noted below, any of
assets will be distributed to then-
which may adversely affect the Fund’s
current shareholders pursuant to a plan
net asset value per share (“NAV”),
of liquidation. The Fund should not be
trading price, yield, total return and
confused with a target date fund, which
ability to meet its investment objective.
has assets that are managed according
The order of the below risk factors does
to a particular investment strategy that
not indicate the significance of any
convert fund assets to conservative
particular risk factor.
investments over time.
Asset Class Risk. Securities and other
The Fund may lend securities
assets in the Underlying Index or in the
representing up to one-third of the value
Fund’s portfolio may underperform in
of the Fund’s total assets (including the
comparison to the general financial
value of any collateral received).
markets, a particular financial market or
The Underlying Index is sponsored by other asset classes.
Bloomberg, which is independent of the
Assets Under Management (AUM)
Fund and BFA. The Index Provider
Risk. From time to time, an Authorized
determines the composition and relative
Participant (as defined in the Creations
weightings of the securities in the
and Redemptions section of this
Underlying Index and publishes
prospectus (the “Prospectus”)), a third-
information regarding the market value
party investor, the Fund’s adviser or an
of the Underlying Index.
affiliate of the Fund’s adviser, or a fund
Industry Concentration Policy. The may invest in the Fund and hold its
Fund will concentrate its investments investment for a specific period of time
(i.e., hold 25% or more of its total to allow the Fund to achieve size or
assets) in a particular industry or group scale. There can be no assurance that
of industries to approximately the same any such entity would not redeem its
extent that the Underlying Index is investment or that the size of the Fund
concentrated. For purposes of this would be maintained at such levels,
limitation, securities of the U.S. which could negatively impact the Fund.
government (including its agencies and
Authorized Participant Concentration
instrumentalities), repurchase
Risk. Only an Authorized Participant
agreements collateralized by U.S.
may engage in creation or redemption
government securities, and securities of
transactions directly with the Fund, and
state or municipal governments and
none of those Authorized Participants is
their political subdivisions are not
obligated to engage in creation and/or
considered to be issued by members of
redemption transactions. The Fund has
any industry.
a limited number of institutions that
may act as Authorized Participants on
an agency basis (i.e., on behalf of other
S-5Table of Contents
market participants). To the extent that Consumer Cyclical Industry Risk.
Authorized Participants exit the Consumer cyclical companies rely
business or are unable to proceed with heavily on business cycles and
creation or redemption orders with economic conditions. Consumer cyclical
respect to the Fund and no other companies may be adversely affected
Authorized Participant is able to step by domestic and international economic
forward to create or redeem, Fund downturns, changes in exchange and
shares may be more likely to trade at a interest rates, competition, consumers’
premium or discount to NAV and disposable income and preferences,
possibly face trading halts or delisting. social trends and marketing campaigns.
Call Risk. During periods of falling Credit Risk. Debt issuers and other
interest rates, an issuer of a callable counterparties may be unable or
bond held by the Fund may “call” or unwilling to make timely interest and/or
repay the security before its stated principal payments when due or
maturity, and the Fund may have to otherwise honor their obligations.
reinvest the proceeds in securities with Changes in an issuer’s credit rating or
lower yields, which would result in a the market’s perception of an issuer’s
decline in the Fund’s income, or in creditworthiness may also adversely
securities with greater risks or with affect the value of the Fund’s
other less favorable features. investment in that issuer. The degree of
Communication Services Sector Risk. credit risk depends on an issuer’s or
Companies in the communications counterparty’s financial condition and
sector may be affected by industry on the terms of an obligation.
competition, substantial capital Cybersecurity Risk. Failures or
requirements, government regulation, breaches of the electronic systems of
cyclicality of revenues and earnings, the Fund, the Fund’s adviser, distributor,
obsolescence of communications the Index Provider and other service
products and services due to providers, market makers, Authorized
technological advancement, a potential Participants or the issuers of securities
decrease in the discretionary income of in which the Fund invests have the
targeted individuals and changing ability to cause disruptions, negatively
consumer tastes and interests. impact the Fund’s business operations
Concentration Risk. The Fund may be and/or potentially result in financial
susceptible to an increased risk of loss, losses to the Fund and its shareholders.
including losses due to adverse events While the Fund has established business
that affect the Fund’s investments more continuity plans and risk management
than the market as a whole, to the systems seeking to address system
extent that the Fund’s investments are breaches or failures, there are inherent
concentrated in the securities and/or limitations in such plans and systems.
other assets of a particular issuer or Furthermore, the Fund cannot control
issuers, country, group of countries, the cybersecurity plans and systems of
region, market, industry, group of the Fund’s Index Provider and other
industries, sector, market segment or service providers, market makers,
asset class. Authorized Participants or issuers of
securities in which the Fund invests.
S-6Table of Contents
Declining Yield Risk. During the six at the time of your investment. For
months prior to the Fund’s planned example, at times during the Fund’s
termination date, the Fund’s yield will existence it may make distributions at a
generally tend to move toward greater (or lesser) rate than the coupon
prevailing money market rates and may payments received on the Fund’s
be lower than the yields of the bonds portfolio, which would result in the Fund
previously held by the Fund and lower returning a lesser (or greater) amount
than prevailing yields for bonds in the on liquidation than would otherwise be
market. the case. The rate of Fund distribution
Financials Sector Risk. Performance of payments may adversely affect the tax
companies in the financials sector may characterization of your returns from an
be adversely impacted by many factors, investment in the Fund relative to a
including, among others, changes in direct investment in bonds. If the
government regulations, economic amount you receive as liquidation
conditions, and interest rates, credit proceeds upon the Fund’s termination is
rating downgrades, and decreased higher or lower than your cost basis,
liquidity in credit markets. The extent to you may experience a gain or loss for
which the Fund may invest in a company tax purposes.
that engages in securities-related High Yield Securities Risk. Securities
activities or banking is limited by that are rated below investment-grade
applicable law. The impact of changes in (commonly referred to as “junk bonds,”
capital requirements and recent or which may include those bonds rated
future regulation of any individual below “BBB-” by S&P Global Ratings and
financial company, or of the financials Fitch, or below “Baa3” by Moody’s), or
sector as a whole, cannot be predicted. are unrated, may be deemed
In recent years, cyberattacks and speculative, may involve greater levels
technology malfunctions and failures of risk than higher-rated securities of
have become increasingly frequent in similar maturity and may be more likely
this sector and have caused significant to default. BBB-rated bonds, although
losses to companies in this sector, investment-grade, may share some of
which may negatively impact the Fund. the same speculative characteristics as
Fluctuation of Yield and Liquidation “junk bonds.”
Amount Risk. The Fund, unlike a direct Illiquid Investments Risk. The Fund
investment in a bond that has a level may invest up to an aggregate amount
coupon payment and a fixed payment at of 15% of its net assets in illiquid
maturity, will make distributions of investments. An illiquid investment is
income that vary over time. It is any investment that the Fund
expected that an investment in the reasonably expects cannot be sold or
Fund, if held through maturity, will disposed of in current market
produce aggregate returns comparable conditions in seven calendar days or
to a direct investment in a group of less without significantly changing the
bonds of similar credit quality and market value of the investment. To the
maturity. Unlike a direct investment in extent the Fund holds illiquid
bonds, the breakdown of returns investments, the illiquid investments
between Fund distributions and may reduce the returns of the Fund
liquidation proceeds are not predictable because the Fund may be unable to
S-7Table of Contents
transact at advantageous times or index computations or the construction
prices. During periods of market of the Underlying Index in accordance
volatility, liquidity in the market for the with its methodology may occur from
Fund’s shares may be impacted by the time to time and may not be identified
liquidity in the market for the underlying and corrected by the Index Provider for
securities or instruments held by the a period of time or at all, which may
Fund, which could lead to the Fund’s have an adverse impact on the Fund and
shares trading at a premium or discount its shareholders. To the extent that the
to the Fund’s NAV. Underlying Index includes a non-
Income Risk. The Fund’s income may standard methodology, errors in index
decline if interest rates fall. This decline data, index computation or the
in income can occur because the Fund construction of the Underlying Index
may subsequently invest in lower- may be more likely to occur. Unusual
yielding instruments as bonds in its market conditions may cause the Index
portfolio mature, are near maturity or Provider to postpone a scheduled
are called, bonds in the Underlying rebalance, which could cause the
Index are substituted, or the Fund Underlying Index to vary from its normal
otherwise needs to purchase additional or expected composition.
bonds. As the Fund does not seek to Infectious Illness Risk. An outbreak of
return any predetermined amount at an infectious respiratory illness, COVID-
maturity or in periodic distributions, the 19, caused by a novel coronavirus has
amount of income generated by the resulted in travel restrictions, disruption
Fund may vary during its term or when of healthcare systems, prolonged
the BBB-rated bonds are added to the quarantines, cancellations, supply chain
Underlying Index as constituent high disruptions, lower consumer demand,
yield bonds are called, no longer qualify layoffs, ratings downgrades, defaults
for inclusion or decline in value and other significant economic impacts.
compared to a reference point. Such Certain markets have experienced
change may result in a net decrease in temporary closures, extreme volatility,
the average yield of bonds held by the severe losses, reduced liquidity and
Fund. In addition, the Fund’s income is increased trading costs. These events
expected to decline in the months will have an impact on the Fund and its
leading up to its maturity date because investments and could impact the
its portfolio will increasingly consist of Fund’s ability to purchase or sell
cash and cash equivalents. securities or cause elevated tracking
Index-Related Risk. There is no error and increased premiums or
guarantee that the Fund’s investment discounts to the Fund’s NAV. Other
results will have a high degree of infectious illness outbreaks in the future
correlation to those of the Underlying may result in similar impacts.
Index or that the Fund will achieve its Interest Rate Risk. During periods of
investment objective. Market very low or negative interest rates, the
disruptions and regulatory restrictions Fund may be unable to maintain positive
could have an adverse effect on the returns or pay dividends to Fund
Fund’s ability to adjust its exposure to shareholders. Very low or negative
the required levels in order to track the interest rates may magnify interest rate
Underlying Index. Errors in index data, risk. Changing interest rates, including
S-8Table of Contents
rates that fall below zero, may have global events such as war, acts of
unpredictable effects on markets, result terrorism, the spread of infectious
in heightened market volatility and illness or other public health issues,
detract from the Fund’s performance to recessions, or other events could have a
the extent the Fund is exposed to such significant impact on the Fund and its
interest rates. Additionally, under investments and could result in
certain market conditions in which increased premiums or discounts to the
interest rates are low and the market Fund’s NAV.
prices for portfolio securities have Market Trading Risk. The Fund faces
increased, the Fund may have a very numerous market trading risks,
low, or even negative yield. A low or including the potential lack of an active
negative yield would cause the Fund to market for Fund shares, losses from
lose money in certain conditions and trading in secondary markets, periods of
over certain time periods. An increase in high volatility and disruptions in the
interest rates will generally cause the creation/redemption process. ANY OF
value of securities held by the Fund to THESE FACTORS, AMONG OTHERS,
decline, may lead to heightened MAY LEAD TO THE FUND’S SHARES
volatility in the fixed-income markets TRADING AT A PREMIUM OR DISCOUNT
and may adversely affect the liquidity of TO NAV.
certain fixed-income investments,
including those held by the Fund. The Non-Diversification Risk. The Fund
historically low interest rate may invest a large percentage of its
environment heightens the risks assets in securities issued by or
associated with rising interest rates. representing a small number of issuers.
As a result, the Fund’s performance may
Issuer Risk. The performance of the depend on the performance of a small
Fund depends on the performance of number of issuers.
individual securities to which the Fund
has exposure. The Fund may be Operational Risk. The Fund is exposed
adversely affected if an issuer of to operational risks arising from a
underlying securities held by the Fund is number of factors, including, but not
unable or unwilling to repay principal or limited to, human error, processing and
interest when due. Changes to the communication errors, errors of the
financial condition or credit rating of an Fund’s service providers, counterparties
issuer of those securities may cause the or other third-parties, failed or
value of the securities to decline. inadequate processes and technology
or systems failures. The Fund and BFA
Management Risk. As the Fund will not seek to reduce these operational risks
fully replicate the Underlying Index, it is through controls and procedures.
subject to the risk that BFA’s However, these measures do not
investment strategy may not produce address every possible risk and may be
the intended results. inadequate to address significant
Market Risk. The Fund could lose operational risks.
money over short periods due to short- Passive Investment Risk. The Fund is
term market movements and over not actively managed, and BFA generally
longer periods during more prolonged does not attempt to take defensive
market downturns. Local, regional or
S-9Table of Contents
positions under any market conditions, does not meet certain conditions of the
including declining markets. listing exchange. Any resulting
Reinvestment Risk. The Fund may liquidation of the Fund could cause the
invest a portion of its assets in short- Fund to incur elevated transaction costs
term fixed-income instruments and, as a for the Fund and negative tax
result, may be adversely affected if consequences for its shareholders.
interest rates fall because it may have Tracking Error Risk. The Fund may be
to invest in lower-yielding subject to tracking error, which is the
instruments as bonds in the Fund’s divergence of the Fund’s performance
portfolio mature. from that of the Underlying Index.
Reliance on Trading Partners Risk. Tracking error may occur because of
The Fund invests in countries or regions differences between the securities and
whose economies are heavily other instruments held in the Fund’s
dependent upon trading with key portfolio and those included in the
partners. Any reduction in this trading Underlying Index, pricing
may have an adverse impact on the differences (including, as applicable,
Fund’s investments. Through its differences between a security’s price
holdings of securities of certain issuers, at the local market close and the Fund’s
the Fund is specifically exposed to valuation of a security at the time of
Asian Economic Risk and North calculation of the Fund’s NAV),
American Economic Risk. transaction costs incurred by the Fund,
the Fund’s holding of uninvested cash,
Risk of Investing in the U.S. Certain differences in timing of the accrual of or
changes in the U.S. economy, such as the valuation of distributions, the
when the U.S. economy weakens or requirements to maintain pass-through
when its financial markets decline, may tax treatment, portfolio transactions
have an adverse effect on the securities carried out to minimize the distribution
to which the Fund has exposure. of capital gains to shareholders,
Securities Lending Risk. The Fund may acceptance of custom baskets, changes
engage in securities lending. Securities to the Underlying Index or the costs to
lending involves the risk that the Fund the Fund of complying with various new
may lose money because the borrower or existing regulatory requirements. This
of the loaned securities fails to return risk may be heightened during times of
the securities in a timely manner or at increased market volatility or other
all. The Fund could also lose money in unusual market conditions. Tracking
the event of a decline in the value of error also may result because the Fund
collateral provided for loaned securities incurs fees and expenses, while the
or a decline in the value of any Underlying Index does not. INDEX ETFs
investments made with cash collateral. THAT TRACK INDICES WITH
These events could also trigger adverse SIGNIFICANT WEIGHT IN HIGH
tax consequences for the Fund. YIELD SECURITIES MAY
EXPERIENCE HIGHER TRACKING
Small Fund Risk. When the Fund’s size
ERROR THAN OTHER INDEX ETFs
is small, the Fund may experience low
THAT DO NOT TRACK SUCH
trading volume and wide bid/ask
INDICES.
spreads. In addition, the Fund may face
the risk of being delisted if the Fund
S-10Table of Contents
Valuation Risk. Because the bond portfolio may change on days or during
market may be open on days or during time periods when shareholders will not
time periods when the Fund does not be able to purchase or sell the Fund’s
price its shares, the value of the shares.
securities or other assets in the Fund’s
Performance Information
The bar chart and table that follow show how the Fund has performed on a calendar
year basis and provide an indication of the risks of investing in the Fund. Both assume
that all dividends and distributions have been reinvested in the Fund. Past performance
(before and after taxes) does not necessarily indicate how the Fund will perform in the
future. If BFA had not waived certain Fund fees during certain periods, the Fund’s
returns would have been lower.
Year by Year Returns (Year Ended December 31)
4% 3.48%
3%
2%
1%
0%
2020
The best calendar quarter return during the period shown above was 7.26% in the 2nd
quarter of 2020; the worst was -10.34% in the 1st quarter of 2020.
Updated performance information, including the Fund’s current NAV, may be obtained
by visiting our website at www.iShares.com or by calling 1-800-iShares (1-800-474-
2737) (toll free).
S-11Table of Contents
Average Annual Total Returns
(for the periods ended December 31, 2020)
Since Fund
One Year Inception
(Inception Date: 5/7/2019)
Return Before Taxes 3.48% 3.42%
Return After Taxes on Distributions1 1.15% 1.15%
Return After Taxes on Distributions and Sale of Fund Shares1 1.99% 1.62%
Bloomberg Barclays 2022 Term High Yield and Income Index
(Index returns do not reflect deductions for fees, expenses, or taxes) 3.74% 4.02%
1
After-tax returns in the table above are calculated using the historical highest individual
U.S. federal marginal income tax rates and do not reflect the impact of state or local taxes.
Actual after-tax returns depend on an investor’s tax situation and may differ from those
shown, and after-tax returns shown are not relevant to tax-exempt investors or investors
who hold shares through tax-deferred arrangements, such as 401(k) plans or individual
retirement accounts (“IRAs”). Fund returns after taxes on distributions and sales of Fund
shares are calculated assuming that an investor has sufficient capital gains of the same
character from other investments to offset any capital losses from the sale of Fund shares.
As a result, Fund returns after taxes on distributions and sales of Fund shares may exceed
Fund returns before taxes and/or returns after taxes on distributions.
S-12Table of Contents
Management Tax Information
Investment Adviser. BlackRock Fund The Fund intends to make distributions
Advisors. that may be taxable to you as ordinary
Portfolio Managers. James Mauro and income or capital gains, unless you are
Karen Uyehara (the “Portfolio investing through a tax-deferred
Managers”) are primarily responsible for arrangement such as a 401(k) plan or
the day-to-day management of the an individual retirement account (“IRA”),
Fund. Each Portfolio Manager in which case, your distributions
supervises a portfolio management generally will be taxed when withdrawn.
team. Mr. Mauro and Ms. Uyehara have Payments to Broker-Dealers
been Portfolio Managers of the Fund
since 2019 and 2021, respectively.
and Other Financial
Intermediaries
Purchase and Sale of Fund If you purchase shares of the Fund
Shares through a broker-dealer or other
The Fund is an ETF. Individual shares of financial intermediary (such as a bank),
the Fund may only be bought and sold in BFA or other related companies may
the secondary market through a broker- pay the intermediary for marketing
dealer. Because ETF shares trade at activities and presentations, educational
market prices rather than at NAV, training programs, conferences, the
shares may trade at a price greater than development of technology platforms
NAV (a premium) or less than NAV (a and reporting systems or other services
discount). An investor may incur costs related to the sale or promotion of the
attributable to the difference between Fund. These payments may create a
the highest price a buyer is willing to conflict of interest by influencing the
pay to purchase shares of the Fund (bid) broker-dealer or other intermediary and
and the lowest price a seller is willing to your salesperson to recommend the
accept for shares of the Fund (ask) Fund over another investment. Ask your
when buying or selling shares in the salesperson or visit your financial
secondary market (the “bid-ask intermediary’s website for more
spread”). information.
S-13Table of Contents
[THIS PAGE INTENTIONALLY LEFT BLANK]Table of Contents
More Information About the Fund
This Prospectus contains important information about investing in the Fund. Please
read this Prospectus carefully before you make any investment decisions. Additional
information regarding the Fund is available at www.iShares.com.
BFA is the investment adviser to the Fund. Shares of the Fund are listed for trading on
Cboe BZX Exchange, Inc. (“Cboe BZX”). The market price for a share of the Fund may
be different from the Fund’s most recent NAV.
ETFs are funds that trade like other publicly-traded securities. The Fund is designed to
track an index. Similar to shares of an index mutual fund, each share of the Fund
represents an ownership interest in an underlying portfolio of securities and other
instruments intended to track a market index. Unlike shares of a mutual fund, which
can be bought and redeemed from the issuing fund by all shareholders at a price based
on NAV, shares of the Fund may be purchased or redeemed directly from the Fund at
NAV solely by Authorized Participants and only in aggregations of a specified number of
shares (“Creation Units”). Also unlike shares of a mutual fund, shares of the Fund are
listed on a national securities exchange and trade in the secondary market at market
prices that change throughout the day.
The Fund will wind up and terminate on or about December 15, 2022. Upon its
termination, the Fund will distribute substantially all of its net assets, after making
appropriate provision for any liabilities of the Fund, to then-current shareholders
pursuant to a plan of liquidation. In the final months of the Fund’s operations, as the
bonds it holds mature, its portfolio will transition to cash and cash equivalents. 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. By
December 15, 2022, the Underlying Index value will be represented almost entirely by
cash as no securities will remain in the Underlying Index. In accordance with the
Trust’s current Agreement and Declaration of Trust, the Fund will terminate on or about
the date noted above, as approved by a majority of the Trust’s Board of Trustees (the
“Board”), without requiring additional approval by Fund shareholders. The Board may
extend the termination date if a majority of the Board determines the extension to be
in the best interest of the Fund.
The Fund invests in a particular segment of the securities markets and seeks to track
the performance of a securities index that is not representative of the market as a
whole. The Fund is designed to be used as part of broader asset allocation strategies.
Accordingly, an investment in the Fund should not constitute a complete investment
program.
An index is a financial calculation, based on a grouping of financial instruments, and is
not an investment product, while the Fund is an actual investment portfolio. The
performance of the Fund and the Underlying Index may vary for a number of reasons,
including transaction costs, non-U.S. currency valuations, asset valuations, corporate
actions (such as mergers and spin-offs), timing variances and differences between the
Fund’s portfolio and the Underlying Index resulting from the Fund’s use of
1Table of Contents
representative sampling or from legal restrictions (such as diversification
requirements) that apply to the Fund but not to the Underlying Index. From time to
time, the Index Provider may make changes to the methodology or other adjustments
to the Underlying Index. Unless otherwise determined by BFA, any such change or
adjustment will be reflected in the calculation of the Underlying Index performance on
a going-forward basis after the effective date of such change or adjustment. Therefore,
the Underlying Index performance shown for periods prior to the effective date of any
such change or adjustment will generally not be recalculated or restated to reflect
such change or adjustment.
“Tracking error” is the divergence of the Fund’s performance from that of the
Underlying Index. Because the Fund uses a representative sampling indexing strategy,
it can be expected to have a larger tracking error than if it used a replication indexing
strategy. “Replication” is an indexing strategy in which a fund invests in substantially all
of the securities in its underlying index in approximately the same proportions as in the
underlying index.
An investment in the Fund is not a bank deposit and it is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government agency, BFA or
any of its affiliates.
The Fund’s investment objective and the Underlying Index may be changed without
shareholder approval.
A Further Discussion of Principal Risks
The Fund is subject to various risks, including the principal risks noted below, any of
which may adversely affect the Fund’s NAV, trading price, yield, total return and ability
to meet its investment objective. You could lose all or part of your investment in the
Fund, and the Fund could underperform other investments. The order of the below risk
factors does not indicate the significance of any particular risk factor.
Asian Economic Risk. Many Asian economies have experienced rapid growth and
industrialization in recent years, but there is no assurance that this growth rate will be
maintained. Other Asian economies, however, have experienced high inflation, high
unemployment, currency devaluations and restrictions, and over-extension of credit.
Geopolitical hostility, political instability, and economic or environmental events in any
one Asian country may have a significant economic effect on the entire Asian region,
as well as on major trading partners outside Asia. Any adverse event in the Asian
markets may have a significant adverse effect on some or all of the economies of the
countries in which the Fund invests. In particular, China is a key trading partner of
many Asian countries and any changes in trading relationships between China and
other Asian countries may affect the region as a whole. Many Asian countries are
subject to political risk, including political instability, corruption and regional conflict
with neighboring countries. North Korea and South Korea each have substantial
military capabilities, and historical tensions between the two countries present the risk
of war. Escalated tensions involving the two countries and any outbreak of hostilities
between the two countries, or even the threat of an outbreak of hostilities, could have
a severe adverse effect on the entire Asian region. Certain Asian countries have
developed increasingly strained relationships with the U.S., and if these relations were
2Table of Contents
to worsen, they could adversely affect Asian issuers that rely on the U.S. for trade. In
addition, many Asian countries are subject to social and labor risks associated with
demands for improved political, economic and social conditions. These risks, among
others, may adversely affect the value of the Fund’s investments.
Asset Class Risk. The securities and other assets in the Underlying Index or in the
Fund’s portfolio may underperform in comparison to other securities or indexes that
track other countries, groups of countries, regions, industries, groups of industries,
markets, market segments, asset classes or sectors. Various types of securities,
currencies and indexes may experience cycles of outperformance and
underperformance in comparison to the general financial markets depending upon a
number of factors including, among other things, inflation, interest rates, productivity,
global demand for local products or resources, and regulation and governmental
controls. This may cause the Fund to underperform other investment vehicles that
invest in different asset classes.
Assets Under Management (AUM) Risk. From time to time, an Authorized
Participant, a third-party investor, the Fund’s adviser or an affiliate of the Fund’s
adviser, or a fund may invest in the Fund and hold its investment for a specific period
of time to allow the Fund to achieve size or scale. There can be no assurance that any
such entity would not redeem its investment or that the size of the Fund would be
maintained at such levels, which could negatively impact the Fund.
Authorized Participant Concentration Risk. Only an Authorized Participant may
engage in creation or redemption transactions directly with the Fund, and none of
those Authorized Participants is obligated to engage in creation and/or redemption
transactions. The Fund has a limited number of institutions that may act as Authorized
Participants on an agency basis (i.e., on behalf of other market participants). To the
extent that Authorized Participants exit the business or are unable to proceed with
creation or redemption orders with respect to the Fund and no other Authorized
Participant is able to step forward to create or redeem Creation Units, Fund shares
may be more likely to trade at a premium or discount to NAV and possibly face trading
halts or delisting. Authorized Participant concentration risk may be heightened
because ETFs, such as the Fund, that invest in securities issued by non-U.S. issuers or
other securities or instruments that are less widely traded often involve greater
settlement and operational issues and capital costs for Authorized Participants, which
may limit the availability of Authorized Participants.
Call Risk. During periods of falling interest rates, an issuer of a callable bond held by
the Fund may “call” or repay the security before its stated maturity, and the Fund may
have to reinvest the proceeds in securities with lower yields, which would result in a
decline in the Fund’s income, or in securities with greater risks or with other less
favorable features.
Communication Services Sector Risk. The communication services sector consists
of both companies in the telecommunication services industry as well as those in the
media and entertainment industry. Examples of companies in the telecommunication
services industry group include providers of fiber-optic, fixed-line, cellular and wireless
telecommunications networks. Companies in the media and entertainment industry
group encompass a variety of services and products including television broadcasting,
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