August 1, 2019 | |
(as revised November 1, 2019) |
2019 Prospectus |
• | iShares
Preferred and Income Securities
ETF | PFF | NASDAQ |
|
S-1 |
|
1 |
|
2 |
|
14 |
|
18 |
|
19 |
|
22 |
|
31 |
|
32 |
|
33 |
|
33 |
|
35 |
Ticker: PFF | Stock Exchange: NASDAQ |
Annual Fund Operating Expenses (ongoing expenses that you pay each year as a percentage of the value of your investments) | ||||||
Management
Fees |
Distribution
and Service (12b-1) Fees |
Other
Expenses1 |
Total
Annual Fund Operating Expenses | |||
0.46% | None | 0.00% | 0.46% |
1 | The amount rounded to 0.00%. |
1 Year | 3 Years | 5 Years | 10 Years | |||
$47 | $148 | $258 | $579 |
1 | The Fund’s year-to-date return as of June 30, 2019 was 9.94%. |
One Year | Five Years | Ten Years | |||
(Inception Date: 3/26/2007) | |||||
Return Before Taxes | -4.77% | 4.39% | 8.50% | ||
Return After Taxes on Distributions1 | -6.38% | 2.62% | 6.55% | ||
Return After Taxes on Distributions and Sale of Fund Shares1 | -2.11% | 3.05% | 6.39% | ||
S&P U.S. Preferred Stock IndexTM (Index returns do not reflect deductions for fees, expenses, or taxes)2 | -4.25% | 5.08% | 9.60% | ||
ICE Exchange-Listed Preferred & Hybrid Securities Transition Index (Index returns do not reflect deductions for fees, expenses, or taxes)2 | N/A | N/A | N/A | ||
ICE Exchange-Listed Preferred & Hybrid Securities Index (Index returns do not reflect deductions for fees, expenses, or taxes)3 | N/A | N/A | N/A |
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. |
2 | On February 1, 2019, the Fund’s underlying index changed from the S&P U.S. Preferred Stock IndexTM to the ICE Exchange-Listed Preferred & Hybrid Securities Transition Index until October 31, 2019. The inception date of the ICE Exchange-Listed Preferred & Hybrid Securities Transition Index was November 25, 2018. |
3 | On November 1, 2019, the Fund’s underlying index changed from the ICE Exchange-Listed Preferred & Hybrid Securities Transition Index to the ICE Exchange-Listed Preferred & Hybrid Securities Index. The inception date of the ICE Exchange-Listed Preferred & Hybrid Securities Index was November 25, 2018. |
■ | A lack of market liquidity and market efficiency; |
■ | Greater securities price volatility; |
■ | Exchange rate fluctuations and exchange controls; |
■ | Less availability of public information about issuers; |
■ | Limitations on foreign ownership of securities; |
■ | Imposition of withholding or other taxes; |
■ | Imposition of restrictions on the expatriation of the funds or other assets of the Fund; |
■ | Higher transaction and custody costs and delays in settlement procedures; |
■ | Difficulties in enforcing contractual obligations; |
■ | Lower levels of regulation of the securities markets; |
■ | Weaker accounting, disclosure and reporting requirements; and |
■ | Legal principles relating to corporate governance, directors’ fiduciary duties and liabilities and stockholders’ rights in markets in which the Fund invests may differ and/or may not be as extensive or protective as those that apply in the U.S. |
Approximate
Value of a Creation Unit |
Creation
Unit Size |
Standard
Creation/ Redemption Transaction Fee |
Maximum
Additional Charge for Creations* |
Maximum
Additional Charge for Redemptions* | ||||
$1,830,000 | 50,000 | $750 | 3.0% | 2.0% |
* | As a percentage of the net asset value per Creation Unit, inclusive, in the case of redemptions, of the standard redemption transaction fee. |
iShares Preferred and Income Securities ETF | |||||||||
Year
Ended 03/31/19 |
Year
Ended 03/31/18 |
Year
Ended 03/31/17 |
Year
Ended 03/31/16 |
Year
Ended 03/31/15 | |||||
Net asset value, beginning of year | $ 37.54 | $ 38.73 | $ 38.93 | $ 40.07 | $ 39.03 | ||||
Net investment income(a) | 2.10 | 2.14 | 2.17 | 2.24 | 2.35 | ||||
Net realized and unrealized gain (loss)(b) | (1.02) | (1.22) | (0.18) | (1.13) | 1.12 | ||||
Net increase from investment operations | 1.08 | 0.92 | 1.99 | 1.11 | 3.47 | ||||
Distributions (c) | |||||||||
From net investment income | (2.15) | (2.11) | (2.19) | (2.25) | (2.43) | ||||
Total distributions | (2.15) | (2.11) | (2.19) | (2.25) | (2.43) | ||||
Net asset value, end of year | $ 36.47 | $ 37.54 | $ 38.73 | $ 38.93 | $ 40.07 | ||||
Total Return | |||||||||
Based on net asset value | 3.01% | 2.41% | 5.26% | 2.92% | 9.19% | ||||
Ratios to Average Net Assets | |||||||||
Total expenses | 0.46% (d) | 0.47% (d) | 0.47% | 0.47% | 0.47% | ||||
Net investment income | 5.73% | 5.55% | 5.59% | 5.74% | 5.94% | ||||
Supplemental Data | |||||||||
Net assets, end of year (000) | $14,370,721 | $16,622,879 | $17,272,398 | $14,559,042 | $13,078,776 | ||||
Portfolio turnover rate(e) | 28% | 22% | 23% | 15% | 13% | ||||
(a) Based on average shares outstanding. | |||||||||
(b) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. | |||||||||
(c) Distributions for annual periods determined in accordance with U.S. federal income tax regulations. | |||||||||
(d) The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses. | |||||||||
(e) Portfolio turnover rate excludes in-kind transactions. |
Premium/Discount Range | Number of Days | Percentage of Total Days | ||
Greater than 0.5% and Less than 1.0% | 1 | 0.27% | ||
Greater than 0.0% and Less than 0.5% | 152 | 40.53 | ||
At NAV | 8 | 2.13 | ||
Less than 0.0% and Greater than -0.5% | 214 | 57.07 | ||
375 | 100.00% |
Average Annual Total Returns | Cumulative Total Returns | ||||||
1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||
Fund NAV | 3.01% | 4.53% | 11.81% | 3.01% | 24.78% | 205.38% | |
Fund Market | 3.13 | 4.56 | 11.79 | 3.13 | 24.98 | 204.81 | |
Index (a) | 3.80 | 5.25 | 12.81 | 3.80 | 29.17 | 233.86 | |
S&P U.S. Preferred Stock Index™ | 4.00 | 5.29 | 12.83 | 4.00 | 29.42 | 234.50 | |
ICE Exchange-Listed Preferred & Hybrid Securities Transition Index(b) | N/A | N/A | N/A | N/A | N/A | N/A | |
ICE Exchange-Listed Preferred & Hybrid Securities Index(c) | N/A | N/A | N/A | N/A | N/A | N/A |
(a) | Index performance through January 31, 2019 reflects the performance of the S&P U.S. Preferred Stock IndexTM. Index performance from February 1, 2019 to October 31, 2019 reflects the performance of the ICE Exchange-Listed Preferred & Hybrid Securities Transition Index, which, effective as of February 1, 2019, replaced the S&P U.S. Preferred Stock IndexTM as the underlying index of the Fund. Index performance beginning on November 1, 2019 reflects the performance of the ICE Exchange-Listed Preferred & Hybrid Securities Index, which, effective as of November 1, 2019, replaced the ICE Exchange-Listed Preferred & Hybrid Securities Transition Index as the underlying index of the Fund. |
(b) | The inception date of the ICE Exchange-Listed Preferred & Hybrid Securities Transition Index was November 25, 2018. The cumulative total return of this index for the period November 25, 2018 through March 31, 2019 was 5.53%. |
(c) | The inception date of the ICE Exchange-Listed Preferred & Hybrid Securities Index was November 25, 2018. The cumulative total return of this index for the period November 25, 2018 through March 31, 2019 was 6.46%. |
Call: | 1-800-iShares
or 1-800-474-2737 (toll free) Monday through Friday, 8:30 a.m. to 6:30 p.m. (Eastern time) |
Email: | [email protected] |
Write: | c/o
BlackRock Investments, LLC 1 University Square Drive, Princeton, NJ 08540 |