2021 Summary Prospectus - iShares
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
MARCH 1, 2021
(as revised April 1, 2021)
2021 Summary Prospectus
• iShares BB Rated Corporate Bond ETF | HYBB | NYSE ARCA
Before you invest, you may want to review the Fund’s prospectus, which contains more
information about the Fund and its risks. You can find the Fund’s prospectus (including
amendments and supplements) and other information about the Fund, including the
Fund’s statement of additional information and shareholder reports, online at https://
www.ishares.com/prospectus. You can also get this information at no cost by calling 1-
800-iShares (1-800-474-2737) or by sending an e-mail request to
iSharesETFs@blackrock.com, or from your financial professional. The Fund’s prospectus
and statement of additional information, both dated March 1, 2021, as amended and
supplemented from time to time, are incorporated by reference into (legally made a part
of) this Summary Prospectus. Information on the Fund’s net asset value, market price,
premiums and discounts, and bid-ask spreads can be found at www.iShares.com.
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.iSHARES® BB RATED CORPORATE
BOND ETF
Ticker: HYBB Stock Exchange: NYSE Arca
Investment Objective
The iShares BB Rated Corporate Bond ETF (the “Fund”) seeks to track the investment
results of an index composed of BB (or its equivalent) fixed rate U.S. dollar-
denominated bonds issued by U.S. and non-U.S. corporate issuers.
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.
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
Distribution and Fund
Management Service (12b-1) Other Operating
Fees Fees Expenses1 Expenses
0.25% None 0.00% 0.25%
1
The amount rounded to 0.00%.
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. 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 3 Years
$26 $80
S-1Portfolio Turnover. The Fund may pay generally considered non-investment
transaction costs, such as commissions, grade (commonly referred to as “junk
when it buys and sells securities (or bonds”). The securities in the
“turns over” its portfolio). A higher Underlying Index are updated on the
portfolio turnover rate may indicate last calendar day of each month.
higher transaction costs and may result The Fund will invest in non-U.S. issuers
in higher taxes when Fund shares are to the extent necessary for it to track
held in a taxable account. These costs, the Underlying Index. As of October 31,
which are not reflected in the Annual 2020, a significant portion of the
Fund Operating Expenses or in the Underlying Index is represented by
Example, affect the Fund’s securities of companies in the energy
performance. From inception (October industry or sector. The components of
6, 2020) to the most recent fiscal year the Underlying Index, and the degree to
end, the Fund’s portfolio turnover rate which these components represent
was 0% of the average value of its certain industries, are likely to change
portfolio. over time.
Principal Investment BFA uses a “passive” or indexing
Strategies approach to try to achieve the Fund’s
investment objective. Unlike many
The Fund seeks to track the investment investment companies, the Fund does
results of the ICE BofA BB US High Yield not try to “beat” the index it tracks and
Constrained Index (the “Underlying does not seek temporary defensive
Index”), which measures the positions when markets decline or
performance of the BB (or its appear overvalued.
equivalent) fixed-rate, U.S. dollar-
denominated, corporate bond market. Indexing may eliminate the chance that
The Underlying Index is a subset of the the Fund will substantially outperform
ICE BofA US High Yield Constrained the Underlying Index but also may
Index that is market capitalization- reduce some of the risks of active
weighted with a 2% cap on any one management, such as poor security
issuer and a pro rata distribution of any selection. Indexing seeks to achieve
excess weight across the remaining lower costs and better after-tax
issuers in the Underlying Index. performance by aiming to keep portfolio
turnover low in comparison to actively
The Underlying Index includes U.S.
managed investment companies.
dollar-denominated securities issued by
U.S. and non-U.S. industrials, utility and BFA uses a representative sampling
financial corporate issuers, with indexing strategy to manage the Fund.
maturities of one year or more, that “Representative sampling” is an
have $250 million or more of indexing strategy that involves investing
outstanding face value. Only securities in a representative sample of securities
rated BB+ through BB-, based on an that collectively has an investment
average of Moody’s Investors Service, profile similar to that of an applicable
Inc. (“Moody’s”), Fitch Ratings, Inc. underlying index. The securities
(“Fitch”), and S&P Global Ratings, are selected are expected to have, in the
eligible for the Underlying Index. aggregate, investment characteristics
Securities rated BB+ and below are (based on factors such as market value
S-2and industry weightings), fundamental The Underlying Index is sponsored by
characteristics (such as return ICE Data Indices, LLC or its affiliates
variability, duration, maturity, credit (collectively, the “Index Provider” or
ratings and yield) and liquidity measures “IDI”), which is independent of the Fund
similar to those of an applicable and BFA. The Index Provider determines
underlying index. The Fund may or may the composition and relative weightings
not hold all of the securities in the of the securities in the Underlying Index
Underlying Index. and publishes information regarding the
The Fund generally will invest at least market value of the Underlying Index.
90% of its assets in the component Industry Concentration Policy. The
securities of the Underlying Index and Fund will concentrate its investments
may invest up to 10% of its assets in (i.e., hold 25% or more of its total
certain futures, options and swap assets) in a particular industry or group
contracts, cash and cash equivalents, of industries to approximately the same
including shares of money market funds extent that the Underlying Index is
advised by BFA or its affiliates concentrated. For purposes of this
(“BlackRock Cash Funds”), as well as in limitation, securities of the U.S.
securities not included in the Underlying government (including its agencies and
Index, but which BFA believes will help instrumentalities), repurchase
the Fund track the Underlying Index. agreements collateralized by U.S.
From time to time when conditions government securities, and securities of
warrant, however, the Fund may invest state or municipal governments and
at least 80% of its assets in the their political subdivisions are not
component securities of the Underlying considered to be issued by members of
Index and may invest up to 20% of its any industry.
assets in certain futures, options and
swap contracts, cash and cash Summary of Principal Risks
equivalents, including shares of As with any investment, you could lose
BlackRock Cash Funds, as well as in all or part of your investment in the
securities not included in the Underlying Fund, and the Fund’s performance could
Index, but which BFA believes will help trail that of other investments. The Fund
the Fund track the Underlying Index. The is subject to certain risks, including the
Fund seeks to track the investment principal risks noted below, any of
results of the Underlying Index before which may adversely affect the Fund’s
fees and expenses of the Fund. net asset value per share (“NAV”),
The Fund will invest in privately-issued trading price, yield, total return and
securities, including those that are ability to meet its investment objective.
normally purchased pursuant to Rule The order of the below risk factors does
144A or Regulation S promulgated not indicate the significance of any
under the Securities Act of 1933, as particular risk factor.
amended (the “1933 Act”). High Yield Securities Risk. Securities
The Fund may lend securities that are rated below investment-grade
representing up to one-third of the value (commonly referred to as “junk bonds,”
of the Fund’s total assets (including the which may include those bonds rated
value of any collateral received). below “BBB-” by S&P Global Ratings and
Fitch, or below “Baa3” by Moody’s), or
S-3are unrated, may be deemed positions under any market conditions,
speculative, may involve greater levels including declining markets.
of risk than higher-rated securities of Asset Class Risk. Securities and other
similar maturity and may be more likely assets in the Underlying Index or in the
to default. Fund’s portfolio may underperform in
Issuer Risk. The performance of the comparison to the general financial
Fund depends on the performance of markets, a particular financial market or
individual securities to which the Fund other asset classes.
has exposure. The Fund may be Energy Sector Risk. The market value
adversely affected if an issuer of of securities in the energy sector may
underlying securities held by the Fund is decline for many reasons, including,
unable or unwilling to repay principal or among others, changes in energy prices,
interest when due. Changes in the energy supply and demand, government
financial condition or credit rating of an regulations and energy conservation
issuer of those securities may cause the efforts. The energy sector has recently
value of the securities to decline. experienced increased volatility. In
Credit Risk. Debt issuers and other particular, significant market volatility in
counterparties may be unable or the crude oil markets as well as the oil
unwilling to make timely interest and/or futures markets, which resulted in the
principal payments when due or market price of certain crude oil futures
otherwise honor their obligations. contract falling below zero for a period
Changes in an issuer’s credit rating or of time.
the market’s perception of an issuer’s Index-Related Risk. There is no
creditworthiness may also adversely guarantee that the Fund’s investment
affect the value of the Fund’s results will have a high degree of
investment in that issuer. The degree of correlation to those of the Underlying
credit risk depends on an issuer’s or Index or that the Fund will achieve its
counterparty’s financial condition and investment objective. Market
on the terms of an obligation. disruptions and regulatory restrictions
Market Risk. The Fund could lose could have an adverse effect on the
money over short periods due to short- Fund’s ability to adjust its exposure to
term market movements and over the required levels in order to track the
longer periods during more prolonged Underlying Index. Errors in index data,
market downturns. Local, regional or index computations or the construction
global events such as war, acts of of the Underlying Index in accordance
terrorism, the spread of infectious with its methodology may occur from
illness or other public health issues, time to time and may not be identified
recessions, or other events could have a and corrected by the Index Provider for
significant impact on the Fund and its a period of time or at all, which may
investments and could result in have an adverse impact on the Fund and
increased premiums or discounts to the its shareholders. Unusual market
Fund’s NAV. conditions may cause the Index
Passive Investment Risk. The Fund is Provider to postpone a scheduled
not actively managed, and BFA generally rebalance, which could cause the
does not attempt to take defensive
S-4Underlying Index to vary from its normal will have an impact on the Fund and its
or expected composition. investments and could impact the
Interest Rate Risk. During periods of Fund’s ability to purchase or sell
very low or negative interest rates, the securities or cause elevated tracking
Fund may be unable to maintain positive error and increased premiums or
returns or pay dividends to Fund discounts to the Fund’s NAV. Other
shareholders. Very low or negative infectious illness outbreaks in the future
interest rates may magnify interest rate may result in similar impacts.
risk. Changing interest rates, including Income Risk. The Fund’s income may
rates that fall below zero, may have decline if interest rates fall. This decline
unpredictable effects on markets, result in income can occur because the Fund
in heightened market volatility and may subsequently invest in lower-
detract from the Fund’s performance to yielding bonds as bonds in its portfolio
the extent the Fund is exposed to such mature, are near maturity or are called,
interest rates. Additionally, under bonds in the Underlying Index are
certain market conditions in which substituted, or the Fund otherwise
interest rates are low and the market needs to purchase additional bonds.
prices for portfolio securities have Valuation Risk. The price the Fund
increased, the Fund may have a very could receive upon the sale of a security
low, or even negative yield. A low or or other asset may differ from the
negative yield would cause the Fund to Fund’s valuation of the security or other
lose money in certain conditions and asset and from the value used by the
over certain time periods. An increase in Underlying Index, particularly for
interest rates will generally cause the securities or other assets that trade in
value of securities held by the Fund to low volume or volatile markets or that
decline, may lead to heightened are valued using a fair value
volatility in the fixed-income markets methodology as a result of trade
and may adversely affect the liquidity of suspensions or for other reasons. In
certain fixed-income investments, addition, the value of the securities or
including those held by the Fund. The other assets in the Fund’s portfolio may
historically low interest rate change on days or during time periods
environment heightens the risks when shareholders will not be able to
associated with rising interest rates. purchase or sell the Fund’s shares.
Infectious Illness Risk. An outbreak of Authorized Participants who purchase or
an infectious respiratory illness, COVID- redeem Fund shares on days when the
19, caused by a novel coronavirus has Fund is holding fair-valued securities
resulted in travel restrictions, disruption may receive fewer or more shares, or
of healthcare systems, prolonged lower or higher redemption proceeds,
quarantines, cancellations, supply chain than they would have received had the
disruptions, lower consumer demand, Fund not fair-valued securities or used a
layoffs, ratings downgrades, defaults different valuation methodology. The
and other significant economic impacts. Fund’s ability to value investments may
Certain markets have experienced be impacted by technological issues or
temporary closures, extreme volatility, errors by pricing services or other third-
severe losses, reduced liquidity and party service providers.
increased trading costs. These events
S-5Concentration Risk. The Fund may be Market Trading Risk. The Fund faces
susceptible to an increased risk of loss, numerous market trading risks,
including losses due to adverse events including the potential lack of an active
that affect the Fund’s investments more market for Fund shares, losses from
than the market as a whole, to the trading in secondary markets, periods of
extent that the Fund’s investments are high volatility and disruptions in the
concentrated in the securities and/or creation/redemption process. ANY OF
other assets of a particular issuer or THESE FACTORS, AMONG OTHERS,
issuers, country, group of countries, MAY LEAD TO THE FUND’S SHARES
region, market, industry, group of TRADING AT A PREMIUM OR DISCOUNT
industries, sector, market segment or TO NAV.
asset class. Management Risk. As the Fund will not
Cybersecurity Risk. Failures or fully replicate the Underlying Index, it is
breaches of the electronic systems of subject to the risk that BFA’s
the Fund, the Fund’s adviser, distributor, investment strategy may not produce
the Index Provider and other service the intended results.
providers, market makers, Authorized Tracking Error Risk. The Fund may be
Participants or the issuers of securities subject to tracking error, which is the
in which the Fund invests have the divergence of the Fund’s performance
ability to cause disruptions, negatively from that of the Underlying Index.
impact the Fund’s business operations Tracking error may occur because of
and/or potentially result in financial differences between the securities and
losses to the Fund and its shareholders. other instruments held in the Fund’s
While the Fund has established business portfolio and those included in the
continuity plans and risk management Underlying Index, pricing
systems seeking to address system differences (including, as applicable,
breaches or failures, there are inherent differences between a security’s price
limitations in such plans and systems. at the local market close and the Fund’s
Furthermore, the Fund cannot control valuation of a security at the time of
the cybersecurity plans and systems of calculation of the Fund’s NAV),
the Fund’s Index Provider and other transaction costs incurred by the Fund,
service providers, market makers, the Fund’s holding of uninvested cash,
Authorized Participants or issuers of differences in timing of the accrual of or
securities in which the Fund invests. the valuation of distributions, the
Call Risk. During periods of falling requirements to maintain pass-through
interest rates, an issuer of a callable tax treatment, portfolio transactions
bond held by the Fund may “call” or carried out to minimize the distribution
repay the security before its stated of capital gains to shareholders,
maturity, and the Fund may have to acceptance of custom baskets, changes
reinvest the proceeds in securities with to the Underlying Index or the costs to
lower yields, which would result in a the Fund of complying with various new
decline in the Fund’s income, or in or existing regulatory requirements. This
securities with greater risks or with risk may be heightened during times of
other less favorable features. increased market volatility or other
unusual market conditions. Tracking
error also may result because the Fund
S-6incurs fees and expenses, while the a limited number of institutions that
Underlying Index does not. INDEX may act as Authorized Participants on
EXCHANGE TRADED FUNDS (“ETFs”) an agency basis (i.e., on behalf of other
THAT TRACK INDICES WITH market participants). To the extent that
SIGNIFICANT WEIGHT IN HIGH Authorized Participants exit the
YIELD SECURITIES MAY business or are unable to proceed with
EXPERIENCE HIGHER TRACKING creation or redemption orders with
ERROR THAN OTHER INDEX ETFs respect to the Fund and no other
THAT DO NOT TRACK SUCH Authorized Participant is able to step
INDICES. forward to create or redeem, Fund
Risk of Investing in the U.S. Certain shares may be more likely to trade at a
changes in the U.S. economy, such as premium or discount to NAV and
when the U.S. economy weakens or possibly face trading halts or delisting.
when its financial markets decline, may Securities Lending Risk. The Fund may
have an adverse effect on the securities engage in securities lending. Securities
to which the Fund has exposure. lending involves the risk that the Fund
Reliance on Trading Partners Risk. may lose money because the borrower
The Fund invests in countries or regions of the loaned securities fails to return
whose economies are heavily the securities in a timely manner or at
dependent upon trading with key all. The Fund could also lose money in
partners. Any reduction in this trading the event of a decline in the value of
may have an adverse impact on the collateral provided for loaned securities
Fund’s investments. or a decline in the value of any
investments made with cash collateral.
Operational Risk. The Fund is exposed These events could also trigger adverse
to operational risks arising from a tax consequences for the Fund.
number of factors, including, but not
limited to, human error, processing and Assets Under Management (AUM)
communication errors, errors of the Risk. From time to time, an Authorized
Fund’s service providers, counterparties Participant (as defined in the Creations
or other third-parties, failed or and Redemptions section of this
inadequate processes and technology prospectus (the “Prospectus”)), a third-
or systems failures. The Fund and BFA party investor, the Fund’s adviser or an
seek to reduce these operational risks affiliate of the Fund’s adviser, or a fund
through controls and procedures. may invest in the Fund and hold its
However, these measures do not investment for a specific period of time
address every possible risk and may be to allow the Fund to achieve size or
inadequate to address significant scale. There can be no assurance that
operational risks. any such entity would not redeem its
investment or that the size of the Fund
Authorized Participant Concentration would be maintained at such levels,
Risk. Only an Authorized Participant which could negatively impact the Fund.
may engage in creation or redemption
transactions directly with the Fund, and Privately Issued Securities Risk. The
none of those Authorized Participants is Fund may invest in privately issued
obligated to engage in creation and/or securities, including those that are
redemption transactions. The Fund has normally purchased pursuant to Rule
S-7144A or Regulation S promulgated traded securities and may be subject to
under the 1933 Act. Privately issued wide fluctuations in value. Delay or
securities are securities that have not difficulty in selling such securities may
been registered under the 1933 Act and result in a loss to the Fund.
as a result may be subject to legal
restrictions on resale. Privately issued Performance Information
securities are generally not traded on As of the date of the Prospectus, the
established markets. As a result of the Fund has been in operation for less than
absence of a public trading market, one full calendar year and therefore
privately issued securities may be does not report its performance
deemed to be illiquid investments, may information.
be more difficult to value than publicly
S-8Management 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 2020 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-9[THIS PAGE INTENTIONALLY LEFT BLANK]
For more information visit www.iShares.com or call 1-800-474-2737
IS-SP-HYBB-0421
Go paperless. . .
It’s Easy, Economical and Green!
Go to www.icsdelivery.com
Investment Company Act file No.: 811-09729You can also read
