2021 PROSPECTUS - BLACKROCK
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Table of Contents
MARCH 1, 2021
2021 Prospectus
iShares Trust
• iShares iBonds Dec 2022 Term Corporate ETF* | IBDN | NYSE ARCA
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 Dec 2022 Term Corporate ETF may also conduct business as the
iBonds Dec 2022 Term Corporate ETF.iShares®
iShares, Inc.
iShares Trust
iShares U.S. ETF Trust
Supplement dated January 19, 2022 (the “Supplement”)
to the Prospectus (the “Prospectus”) for each of the funds
listed in Appendix A and Appendix B (each, a “Fund”)
The information in this Supplement updates information in, and
should be read in conjunction with, each Fund’s Prospectus.
Change in “Shareholder Information”
The last paragraph in the section of the Prospectus entitled “Buying
and Selling Shares” for each Fund listed in Appendix A is deleted in
its entirety and replaced with the following:
Section 12(d)(1) of the 1940 Act generally restricts investments by
investment companies, including foreign and unregistered investment
companies, in the securities of other investment companies. For
example, a registered investment company (the “Acquired Fund”), such
as the Fund, may not knowingly sell or otherwise dispose of any
security issued by the Acquired Fund to any investment company (the
“Acquiring Fund”) or any company or companies controlled by the
Acquiring Fund if, immediately after such sale or disposition: (i) more
than 3% of the total outstanding voting stock of the Acquired Fund is
owned by the Acquiring Fund and any company or companies
controlled by the Acquiring Fund or (ii) more than 10% of the total
outstanding voting stock of the Acquired Fund is owned by the
Acquiring Fund and other investment companies and companies
controlled by them. Although SEC rules may permit registered
investment companies and unit investment trusts (“Investing Funds”)
that enter into an investment agreement with the Trust to invest in
iShares funds beyond the limits set forth in Section 12(d)(1) of the 1940
Act subject to certain terms and conditions, the Fund does not permit
such investments. Accordingly, Investing Funds must adhere to the
limits set forth in Section 12(d)(1) of the 1940 Act when investing in the
Fund. In addition, foreign investment companies are permitted to invest
in the Fund only up to the limits set forth in Section 12(d)(1), subject to
any applicable SEC no-action relief.The last paragraph in the section of the Prospectus entitled “Buying
and Selling Shares” for each Fund listed in Appendix B is deleted in
its entirety and replaced with the following:
Section 12(d)(1) of the 1940 Act generally restricts investments by
investment companies, including foreign and unregistered investment
companies, in the securities of other investment companies. For
example, a registered investment company (the “Acquired Fund”), such
as the Fund, may not knowingly sell or otherwise dispose of any
security issued by the Acquired Fund to any investment company (the
“Acquiring Fund”) or any company or companies controlled by the
Acquiring Fund if, immediately after such sale or disposition: (i) more
than 3% of the total outstanding voting stock of the Acquired Fund is
owned by the Acquiring Fund and any company or companies
controlled by the Acquiring Fund, or (ii) more than 10% of the total
outstanding voting stock of the Acquired Fund is owned by the
Acquiring Fund and other investment companies and companies
controlled by them. However, registered investment companies are
permitted to invest in the Fund beyond the limits set forth in
Section 12(d)(1), subject to certain terms and conditions set forth in
SEC rules. In order for a registered investment company to invest in
shares of the Fund beyond the limitations of Section 12(d)(1) in reliance
on Rule 12d1-4 under the 1940 Act, the registered investment company
must, among other things, enter into an agreement with the Trust or
Company, as applicable. Foreign investment companies are permitted
to invest in the Fund only up to the limits set forth in Section 12(d)(1),
subject to any applicable SEC no-action relief.
Appendix A
Supplement to Prospectus dated as of July 30, 2021:
iShares Currency Hedged JPX-Nikkei 400 ETF (HJPX)
iShares Russell 2500 ETF (SMMD)
Supplement to Prospectus dated as of March 1, 2021:
iShares iBonds Mar 2023 Term Corporate ETF (IBDD)
Supplement to Prospectus dated as of March 1, 2021
BlackRock Short Maturity Municipal Bond ETF (MEAR)
iShares Yield Optimized Bond ETF (BYLD)Supplement to Prospectus dated as of March 1, 2021 (as revised
December 1, 2021):
iShares Interest Rate Hedged Corporate Bond ETF (LQDH)
iShares Interest Rate Hedged Emerging Markets Bond ETF (EMBH)
iShares Interest Rate Hedged High Yield Bond ETF (HYGH)
iShares Interest Rate Hedged Long-Term Corporate Bond ETF (IGBH)
Appendix B
Supplement to Prospectus dated as of March 1, 2021:
BlackRock Short Maturity Bond ETF (NEAR)
iShares 0-5 Year High Yield Corporate Bond ETF (SHYG)
iShares 0-5 Year Investment Grade Corporate Bond ETF (SLQD)
iShares 1-3 Year International Treasury Bond ETF (ISHG)
iShares Aaa - A Rated Corporate Bond ETF (QLTA)
iShares Bloomberg Roll Select Commodity Strategy ETF (CMDY)
iShares Broad USD High Yield Corporate Bond ETF (USHY)
iShares CMBS ETF (CMBS)
iShares Convertible Bond ETF (ICVT)
iShares Core 1-5 Year USD Bond ETF (ISTB)
iShares Core International Aggregate Bond ETF (IAGG)
iShares Core Total USD Bond Market ETF (IUSB)
iShares ESG Advanced High Yield Corporate Bond ETF (HYXF)
iShares Fallen Angels USD Bond ETF (FALN)
iShares Gold Strategy ETF (IAUF)
iShares GSCI Commodity Dynamic Roll Strategy ETF (COMT)
iShares iBonds Dec 2022 Term Corporate ETF (IBDN)
iShares iBonds Dec 2022 Term Muni Bond ETF (IBMK)
iShares iBonds Dec 2022 Term Treasury ETF (IBTB)
iShares iBonds Dec 2023 Term Corporate ETF (IBDO)
iShares iBonds Dec 2023 Term Muni Bond ETF (IBML)
iShares iBonds Dec 2023 Term Treasury ETF (IBTD)
iShares iBonds Dec 2024 Term Corporate ETF (IBDP)
iShares iBonds Dec 2024 Term Muni Bond ETF (IBMM)
iShares iBonds Dec 2024 Term Treasury ETF (IBTE)
iShares iBonds Dec 2025 Term Corporate ETF (IBDQ)
iShares iBonds Dec 2025 Term Muni Bond ETF (IBMN)
iShares iBonds Dec 2025 Term Treasury ETF (IBTF)
iShares iBonds Dec 2026 Term Corporate ETF (IBDR)
iShares iBonds Dec 2026 Term Muni Bond ETF (IBMO)
iShares iBonds Dec 2026 Term Treasury ETF (IBTG)
iShares iBonds Dec 2027 Term Corporate ETF (IBDS)
iShares iBonds Dec 2027 Term Muni Bond ETF (IBMP)iShares iBonds Dec 2027 Term Treasury ETF (IBTH)
iShares iBonds Dec 2028 Term Muni Bond ETF (IBMQ)
iShares iBonds Dec 2028 Term Treasury ETF (IBTI)
iShares iBonds Dec 2029 Term Corporate ETF (IBDU)
iShares iBonds Dec 2029 Term Treasury ETF (IBTJ)
iShares iBonds Dec 2030 Term Corporate ETF (IBDV)
iShares iBonds Dec 2030 Term Treasury ETF (IBTK)
iShares iBonds Mar 2023 Term Corporate ex-Financials ETF (IBCE)
iShares International High Yield Bond ETF (HYXU)
iShares International Treasury Bond ETF (IGOV)
iShares J.P. Morgan EM Corporate Bond ETF (CEMB)
iShares J.P. Morgan EM High Yield Bond ETF (EMHY)
iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB)
iShares TIPS Bond ETF (TIP)
iShares Treasury Floating Rate Bond ETF (TFLO)
iShares U.S. Fixed Income Balanced Risk Factor ETF (FIBR)
iShares US & Intl High Yield Corp Bond ETF (GHYG)
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-12d1-4-0122
PLEASE RETAIN THIS SUPPLEMENT
FOR FUTURE REFERENCETable 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
PLEASE RETAIN THIS SUPPLEMENT
FOR FUTURE REFERENCE[THIS PAGE INTENTIONALLY LEFT BLANK]
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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 . . . . . . 13
Portfolio Holdings Information . . . . . . . . . . . . . 17
Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Shareholder Information . . . . . . . . . . . . . . . . . . . . 21
Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Financial Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Index Provider . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Disclaimers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
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 December 2022 Maturity Corporate 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® DEC 2022
TERM CORPORATE ETF
Ticker: IBDN Stock Exchange: NYSE Arca
Investment Objective
The iShares iBonds Dec 2022 Term Corporate ETF (the “Fund”) seeks to track the
investment results of an index composed of U.S. dollar-denominated, investment-grade
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 Expenses1 Expenses1,2 Expenses Fee Waiver1,2 Fee Waiver
0.10% None 0.00% 0.00% 0.10% (0.00)% 0.10%
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
$10 $19
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, investment-grade
held in a taxable account. These costs, (as determined by Bloomberg Index
which are not reflected in the Annual Services Limited (the “Index Provider”
Fund Operating Expenses or in the or “Bloomberg”)) corporate bonds
Example, affect the Fund’s scheduled to mature after December
performance. During the most recent 31, 2021 and before December 16,
fiscal year, the Fund’s portfolio turnover 2022. As of October 31, 2020, a
rate was 16% of the average value of its significant portion of the Underlying
portfolio. Index is represented by securities of
companies in the consumer staples and
Principal Investment financials industries or sectors. The
Strategies components of the Underlying Index are
The Fund seeks to meet its investment likely to change over time.
objective generally by investing in The Underlying Index includes U.S.
component securities of the Bloomberg dollar-denominated, investment-grade
Barclays December 2022 Maturity securities publicly issued by U.S. and
Corporate Index (the “Underlying non-U.S. corporate issuers that have
Index”). The Fund may also invest in $300 million or more of outstanding
other exchange-traded funds (“ETFs”), face value at the time of inclusion. The
U.S. government securities, short-term non-U.S. corporate issuers included in
paper, cash and cash equivalents, the Underlying Index consist primarily of
including shares of money market funds corporate bonds issued by companies
advised by BFA or its affiliates. domiciled in developed countries. The
The Fund is a term fund that will Fund will invest in non-U.S. issuers to
terminate on or about December 15, the extent necessary for it to track the
2022, at which time it will distribute its Underlying Index. Each bond must be
S-2Table of Contents
registered with the SEC, have been the Underlying Index. The securities in
exempt from registration at issuance, or the Underlying Index are updated on the
have been offered pursuant to Rule last calendar day of each month until six
144A under the Securities Act of 1933, months prior to maturity. The last
as amended (the “1933 Act”), with rebalance date will be on June 30, 2022.
registration rights. Further, the During this final six month period, the
securities in the Underlying Index must Underlying Index will no longer be
be denominated in U.S. dollars and have updated or rebalanced, except to
a fixed-rate, although they can carry a remove securities which are
coupon that steps-up or changes downgraded to below investment-grade
according to a predetermined schedule. per the eligibility criteria described
In addition, to be included in the above. Additionally, during this period,
Underlying Index, securities that are existing bond weights will be allowed to
rated by all three of the rating agencies float based on changes in market value.
named below must be rated When a bond that is included in the
“investment-grade” by at least two of Underlying Index matures, its maturity
the agencies, which is defined as Baa3 value will be represented in the
or higher by Moody’s Investors Service, Underlying Index by cash throughout
Inc. or BBB- or higher by S&P Global the remaining life of the Underlying
Ratings or Fitch Ratings, Inc. When Index. As the Fund approaches its
ratings from only two of the three rating termination date, its holdings of money
agencies are available, the lower rating market or similar funds may increase,
is used to determine eligibility. causing the Fund to incur the fees and
Securities with a rating from only one of expenses of these funds. By December
the three ratings agencies must be 15, 2022, the Underlying Index value
rated investment-grade in order to be will be represented almost entirely by
included in the Underlying Index. cash as no securities will remain in the
The Underlying Index is constructed Underlying Index.
with the following methodology. A The Fund is a series of the iShares
parent index, the Bloomberg Barclays iBonds® fixed maturity series of bond
U.S. Corporate Index, representing U.S. ETFs sponsored by BlackRock, Inc.
dollar-denominated, taxable, (“BlackRock”). The iBonds® fixed
investment-grade corporate bonds, is maturity series do not invest in U.S.
stripped of securities maturing outside savings bonds or other U.S. government
of the maturity range defined above. bonds (except to the extent the funds
During the final two years of the hold cash equivalent instruments
Underlying Index, bonds that had been consistent with their investment
screened out of the parent index due to objectives) and are not designed to
being within one year of maturity will be provide protection against inflation.
added back into the Underlying Index
until such bonds reach maturity. BFA uses a “passive” or indexing
Securities are then market-cap approach to try to achieve the Fund’s
weighted within the Underlying Index, investment objective. Unlike many
with a 3% cap on any one issuer, and a investment companies, the Fund does
pro rata distribution of any excess not try to “beat” the index it tracks and
weight across the remaining issuers in does not seek temporary defensive
S-3Table of Contents
positions when markets decline or From time to time when conditions
appear overvalued. warrant, however, the Fund may invest
Indexing may eliminate the chance that at least 80% of its assets in the
the Fund will substantially outperform component securities of the Underlying
the Underlying Index but also may Index and may invest up to 20% of its
reduce some of the risks of active assets in certain futures, options and
management, such as poor security swap contracts, cash and cash
selection. Indexing seeks to achieve equivalents, including shares of
lower costs and better after-tax BlackRock Cash Funds, as well as in
performance by aiming to keep portfolio securities not included in the Underlying
turnover low in comparison to actively Index, but which BFA believes will help
managed investment companies. the Fund track the Underlying Index.
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 months of operation, as the bonds
indexing strategy that involves investing
held by the Fund mature, the proceeds
in a representative sample of securities
will not be reinvested by the Fund in
that collectively has an investment
bonds but instead will be held in cash
profile similar to that of an applicable
and cash equivalents. By December 15,
underlying index. The securities
2022, the Underlying Index is expected
selected are expected to have, in the
to consist almost entirely of cash
aggregate, investment characteristics
earned in this manner. On or around this
(based on factors such as market value
date, the Fund will wind up and
and industry weightings), fundamental
terminate, and its net assets will be
characteristics (such as return
distributed to then-current shareholders
variability, duration, maturity, credit
pursuant to a plan of liquidation.
ratings and yield) and liquidity measures
similar to those of an applicable The Fund may lend securities
underlying index. The Fund may or may representing up to one-third of the value
not hold all of the securities in the of the Fund’s total assets (including the
Underlying Index. value of any collateral received).
The Fund generally will invest at least The Underlying Index is sponsored by
90% of its assets in the component Bloomberg, which is independent of the
securities of the Underlying Index, Fund and BFA. The Index Provider
except during the last months of the determines the composition and relative
Fund’s operations, as described below, weightings of the securities in the
and may invest up to 10% of its assets Underlying Index and publishes
in certain futures, options and swap information regarding the market value
contracts, cash and cash equivalents, of the Underlying Index.
including shares of money market funds Industry Concentration Policy. The
advised by BFA or its affiliates Fund will concentrate its investments
(“BlackRock Cash Funds”), as well as in (i.e., hold 25% or more of its total
securities not included in the Underlying assets) in a particular industry or group
Index, but which BFA believes will help of industries to approximately the same
the Fund track the Underlying Index. extent that the Underlying Index is
S-4Table of Contents
concentrated. For purposes of this creation or redemption orders with
limitation, securities of the U.S. respect to the Fund and no other
government (including its agencies and Authorized Participant is able to step
instrumentalities), repurchase forward to create or redeem, Fund
agreements collateralized by U.S. shares may be more likely to trade at a
government securities, and securities of premium or discount to NAV and
state or municipal governments and possibly face trading halts or delisting.
their political subdivisions are not Call Risk. During periods of falling
considered to be issued by members of interest rates, an issuer of a callable
any industry. bond held by the Fund may “call” or
Summary of Principal Risks repay the security before its stated
maturity, and the Fund may have to
As with any investment, you could lose reinvest the proceeds in securities with
all or part of your investment in the lower yields, which would result in a
Fund, and the Fund’s performance could decline in the Fund’s income, or in
trail that of other investments. The Fund securities with greater risks or with
is subject to certain risks, including the other less favorable features.
principal risks noted below, any of
which may adversely affect the Fund’s Concentration Risk. The Fund may be
net asset value per share (“NAV”), susceptible to an increased risk of loss,
trading price, yield, total return and including losses due to adverse events
ability to meet its investment objective. that affect the Fund’s investments more
The order of the below risk factors does than the market as a whole, to the
not indicate the significance of any extent that the Fund’s investments are
particular risk factor. concentrated in the securities and/or
other assets of a particular issuer or
Asset Class Risk. Securities and other issuers, country, group of countries,
assets in the Underlying Index or in the region, market, industry, group of
Fund’s portfolio may underperform in industries, sector, market segment or
comparison to the general financial asset class.
markets, a particular financial market or
other asset classes. Consumer Staples Sector Risk. The
consumer staples sector may be
Authorized Participant Concentration affected by, among other things,
Risk. Only an Authorized Participant (as marketing campaigns, changes in
defined in the Creations and consumer demands, government
Redemptions section of this Prospectus) regulations and changes in commodity
may engage in creation or redemption prices.
transactions directly with the Fund, and
none of those Authorized Participants is Credit Risk. Debt issuers and other
obligated to engage in creation and/or counterparties may be unable or
redemption transactions. The Fund has unwilling to make timely interest and/or
a limited number of institutions that principal payments when due or
may act as Authorized Participants on otherwise honor their obligations.
an agency basis (i.e., on behalf of other Changes in an issuer’s credit rating or
market participants). To the extent that the market’s perception of an issuer’s
Authorized Participants exit the creditworthiness may also adversely
business or are unable to proceed with affect the value of the Fund’s
S-5Table of Contents
investment in that issuer. The degree of activities or banking is limited by
credit risk depends on an issuer’s or applicable law. The impact of changes in
counterparty’s financial condition and capital requirements and recent or
on the terms of an obligation. future regulation of any individual
Cybersecurity Risk. Failures or financial company, or of the financials
breaches of the electronic systems of sector as a whole, cannot be predicted.
the Fund, the Fund’s adviser, distributor, In recent years, cyberattacks and
the Index Provider and other service technology malfunctions and failures
providers, market makers, Authorized have become increasingly frequent in
Participants or the issuers of securities this sector and have caused significant
in which the Fund invests have the losses to companies in this sector,
ability to cause disruptions, negatively which may negatively impact the Fund.
impact the Fund’s business operations Fluctuation of Yield and Liquidation
and/or potentially result in financial Amount Risk. The Fund, unlike a direct
losses to the Fund and its shareholders. investment in a bond that has a level
While the Fund has established business coupon payment and a fixed payment at
continuity plans and risk management maturity, will make distributions of
systems seeking to address system income that vary over time. It is
breaches or failures, there are inherent expected that an investment in the
limitations in such plans and systems. Fund, if held through maturity, will
Furthermore, the Fund cannot control produce aggregate returns comparable
the cybersecurity plans and systems of to a direct investment in a group of
the Fund’s Index Provider and other bonds of similar credit quality and
service providers, market makers, maturity. Unlike a direct investment in
Authorized Participants or issuers of bonds, the breakdown of returns
securities in which the Fund invests. between Fund distributions and
Declining Yield Risk. During the twelve liquidation proceeds are not predictable
months prior to the Fund’s planned at the time of your investment. For
termination date, the Fund’s yield will example, at times during the Fund’s
generally tend to move toward existence it may make distributions at a
prevailing money market rates and may greater (or lesser) rate than the coupon
be lower than the yields of the bonds payments received on the Fund’s
previously held by the Fund and lower portfolio, which would result in the Fund
than prevailing yields for bonds in the returning a lesser (or greater) amount
market. on liquidation than would otherwise be
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
S-6Table of Contents
Illiquid Investments Risk. The Fund investment objective. Market
may invest up to an aggregate amount disruptions and regulatory restrictions
of 15% of its net assets in illiquid could have an adverse effect on the
investments. An illiquid investment is Fund’s ability to adjust its exposure to
any investment that the Fund the required levels in order to track the
reasonably expects cannot be sold or Underlying Index. Errors in index data,
disposed of in current market index computations or the construction
conditions in seven calendar days or of the Underlying Index in accordance
less without significantly changing the with its methodology may occur from
market value of the investment. To the time to time and may not be identified
extent the Fund holds illiquid and corrected by the Index Provider for
investments, the illiquid investments a period of time or at all, which may
may reduce the returns of the Fund have an adverse impact on the Fund and
because the Fund may be unable to its shareholders. Unusual market
transact at advantageous times or conditions may cause the Index
prices. During periods of market Provider to postpone a scheduled
volatility, liquidity in the market for the rebalance, which could cause the
Fund’s shares may be impacted by the Underlying Index to vary from its normal
liquidity in the market for the underlying or expected composition.
securities or instruments held by the Infectious Illness Risk. An outbreak of
Fund, which could lead to the Fund’s an infectious respiratory illness, COVID-
shares trading at a premium or discount 19, caused by a novel coronavirus has
to the Fund’s NAV. resulted in travel restrictions, disruption
Income Risk. The Fund’s income may of healthcare systems, prolonged
decline if interest rates fall. This decline quarantines, cancellations, supply chain
in income can occur because the Fund disruptions, lower consumer demand,
may subsequently invest in lower- layoffs, ratings downgrades, defaults
yielding bonds as bonds in its portfolio and other significant economic impacts.
mature, are near maturity or are called, Certain markets have experienced
bonds in the Underlying Index are temporary closures, extreme volatility,
substituted, or the Fund otherwise severe losses, reduced liquidity and
needs to purchase additional bonds. As increased trading costs. These events
the Fund does not seek to return any will have an impact on the Fund and its
predetermined amount at maturity or in investments and could impact the
periodic distributions, the amount of Fund’s ability to purchase or sell
income generated by the Fund may vary securities or cause elevated tracking
during its term. In addition, the Fund’s error and increased premiums or
income is expected to decline in the discounts to the Fund’s NAV. Other
months leading up to its maturity date infectious illness outbreaks in the future
because its portfolio will increasingly may result in similar impacts.
consist of cash and cash equivalents. Interest Rate Risk. During periods of
Index-Related Risk. There is no very low or negative interest rates, the
guarantee that the Fund’s investment Fund may be unable to maintain positive
results will have a high degree of returns or pay dividends to Fund
correlation to those of the Underlying shareholders. Very low or negative
Index or that the Fund will achieve its interest rates may magnify interest rate
S-7Table of Contents
risk. Changing interest rates, including market downturns. Local, regional or
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 Operational Risk. The Fund is exposed
historically low interest rate to operational risks arising from a
environment heightens the risks number of factors, including, but not
associated with rising interest rates. limited to, human error, processing and
communication errors, errors of the
Issuer Risk. The performance of the Fund’s service providers, counterparties
Fund depends on the performance of or other third-parties, failed or
individual securities to which the Fund inadequate processes and technology
has exposure.The Fund may be or systems failures. The Fund and BFA
adversely affected if an issuer of seek to reduce these operational risks
underlying securities held by the Fund is through controls and procedures.
unable or unwilling to repay principal or However, these measures do not
interest when due. Changes in the address every possible risk and may be
financial condition or credit rating of an inadequate to address significant
issuer of those securities may cause the operational risks.
value of the securities to decline.
Passive Investment Risk. The Fund is
Management Risk. As the Fund will not not actively managed, and BFA generally
fully replicate the Underlying Index, it is does not attempt to take defensive
subject to the risk that BFA’s positions under any market conditions,
investment strategy may not produce including declining markets.
the intended results.
Reinvestment Risk. The Fund may
Market Risk. The Fund could lose invest a portion of its assets in short-
money over short periods due to short- term fixed-income instruments and, as a
term market movements and over result, may be adversely affected if
longer periods during more prolonged interest rates fall because it may have
S-8Table of Contents
to invest in lower-yielding other instruments held in the Fund’s
instruments as bonds in the Fund’s portfolio and those included in the
portfolio mature. Underlying Index, pricing
Reliance on Trading Partners Risk. differences (including, as applicable,
The Fund invests in countries or regions differences between a security’s price
whose economies are heavily at the local market close and the Fund’s
dependent upon trading with key valuation of a security at the time of
partners. Any reduction in this trading calculation of the Fund’s NAV),
may have an adverse impact on the transaction costs incurred by the Fund,
Fund’s investments. the Fund’s holding of uninvested cash,
differences in timing of the accrual of or
Risk of Investing in the U.S. Certain the valuation of distributions, the
changes in the U.S. economy, such as requirements to maintain pass-through
when the U.S. economy weakens or tax treatment, portfolio transactions
when its financial markets decline, may carried out to minimize the distribution
have an adverse effect on the securities of capital gains to shareholders,
to which the Fund has exposure. acceptance of custom baskets, changes
Securities Lending Risk. The Fund may to the Underlying Index or the costs to
engage in securities lending. Securities the Fund of complying with various new
lending involves the risk that the Fund or existing regulatory requirements. This
may lose money because the borrower risk may be heightened during times of
of the loaned securities fails to return increased market volatility or other
the securities in a timely manner or at unusual market conditions. Tracking
all. The Fund could also lose money in error also may result because the Fund
the event of a decline in the value of incurs fees and expenses, while the
collateral provided for loaned securities Underlying Index does not.
or a decline in the value of any Valuation Risk. Because the bond
investments made with cash collateral. market may be open on days or during
These events could also trigger adverse time periods when the Fund does not
tax consequences for the Fund. price its shares, the value of the
Tracking Error Risk. The Fund may be securities or other assets in the Fund’s
subject to tracking error, which is the portfolio may change on days or during
divergence of the Fund’s performance time periods when shareholders will not
from that of the Underlying Index. be able to purchase or sell the Fund’s
Tracking error may occur because of shares.
differences between the securities and
S-9Table of Contents
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 (Years Ended December 31)
10%
8% 7.37%
6% 5.46%
3.92%
4% 3.45%
2%
0.08%
0%
2016 2017 2018 2019 2020
The best calendar quarter return during the periods shown above was 4.24% in the 2nd
quarter of 2020; the worst was -2.40% in the 4th quarter of 2016.
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).
Average Annual Total Returns
(for the periods ended December 31, 2020)
Since Fund
One Year Five Years Inception
(Inception Date: 3/10/2015)
Return Before Taxes 3.45% 4.03% 3.33%
Return After Taxes on Distributions1 2.47% 2.85% 2.14%
Return After Taxes on Distributions and Sale of Fund
Shares1 2.03% 2.57% 2.02%
Bloomberg Barclays December 2022 Maturity
Corporate Index (Index returns do not reflect
deductions for fees, expenses, or taxes) 3.50% 4.17% 3.43%
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-10Table 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 IRA, in which case, your distributions
Fund. Each Portfolio Manager generally will be taxed when withdrawn.
supervises a portfolio management Payments to Broker-Dealers
team. Mr. Mauro and Ms. Uyehara have
been Portfolio Managers of the Fund
and Other Financial
since 2015 and 2021, respectively. Intermediaries
If you purchase shares of the Fund
Purchase and Sale of Fund through a broker-dealer or other
Shares financial intermediary (such as a bank),
The Fund is an ETF. Individual shares of BFA or other related companies may
the Fund may only be bought and sold in pay the intermediary for marketing
the secondary market through a broker- activities and presentations, educational
dealer. Because ETF shares trade at training programs, conferences, the
market prices rather than at NAV, development of technology platforms
shares may trade at a price greater than and reporting systems or other services
NAV (a premium) or less than NAV (a related to the sale or promotion of the
discount). An investor may incur costs Fund. These payments may create a
attributable to the difference between conflict of interest by influencing the
the highest price a buyer is willing to broker-dealer or other intermediary and
pay to purchase shares of the Fund (bid) your salesperson to recommend the
and the lowest price a seller is willing to Fund over another investment. Ask your
accept for shares of the Fund (ask) salesperson or visit your financial
when buying or selling shares in the intermediary’s website for more
secondary market (the “bid-ask information.
spread”).
S-11Table 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
NYSE Arca, Inc. (“NYSE Arca”). 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 Amended and Restated 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.
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.
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
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