• | BlackRock LifePath® Index Retirement Fund |
• | BlackRock LifePath® Index 2025 Fund |
• | BlackRock LifePath® Index 2030 Fund |
• | BlackRock LifePath® Index 2035 Fund |
• | BlackRock LifePath® Index 2040 Fund |
• | BlackRock LifePath® Index 2045 Fund |
• | BlackRock LifePath® Index 2050 Fund |
• | BlackRock LifePath® Index 2055 Fund |
• | BlackRock LifePath® Index 2060 Fund |
• | BlackRock LifePath® Index 2065 Fund |
Not FDIC Insured • May Lose Value • No Bank Guarantee |
For More Information | Funds and Service Providers | Inside Back Cover |
Additional Information | Back Cover |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
Investor A Shares |
Institutional Shares | ||||||||
Management
Fee1 |
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Distribution
and/or Service (12b-1) Fees |
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Other
Expenses1,3 |
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Administration
Fees1 |
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Independent
Expenses3 |
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Acquired
Fund Fees and Expenses1,2 |
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Total
Annual Fund Operating Expenses2 |
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Fee
Waivers and/or Expense Reimbursements1,3 |
( |
( |
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Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements1,3 |
1 |
|
2 |
|
3 |
|
1 Year | 3 Years | 5 Years | 10 Years | |||||||||||||
Investor
A Shares |
$ | $ | $ | $ | ||||||||||||
Institutional
Shares |
$ | $ | $ | $ |
∎ |
Equity
Securities Risk — Stock markets are volatile. The price of
equity securities fluctuates based on changes in a company’s financial
condition and overall market and economic
conditions. |
∎ |
Debt Securities
Risk — Debt securities, such as bonds, involve risks, such
as credit risk, interest rate risk, extension risk, and prepayment risk,
each of which are described in further detail
below: |
∎ |
Investments in
Underlying Funds Risk — Because the Fund invests
substantially all of its assets in Underlying Funds, its investment
performance is related to the performance of the Underlying Funds. The
Fund’s net asset value will change with changes in the value of the
Underlying Funds and other securities in which it invests. An investment
in the Fund will entail more direct and indirect costs and expenses than a
direct investment in the Underlying
Funds. |
∎ |
Allocation
Risk — The Fund’s ability to achieve its investment
objective depends upon the Fund’s asset class allocation and the mix of
Underlying Funds. There is a risk that the asset class allocation or the
combination of Underlying Funds may be incorrect in view of actual market
conditions. In addition, the asset allocation or the combination of
Underlying Funds determined by BFA could result in underperformance as
compared to funds with similar investment objectives and
strategies. |
∎ |
Retirement
Income Risk — The Fund does not provide a guarantee that
sufficient capital appreciation will be achieved to provide adequate
income at and through retirement. The Fund also does not ensure that you
will have assets in your account sufficient to cover your retirement
expenses; this will depend on the amount of money you have invested in the
Fund, the length of time you have held your investment, the returns of the
markets over time, the amount you spend in retirement, and your other
assets and income sources. |
∎ |
Affiliated Fund
Risk — In managing the Fund, BFA will have authority to
select and substitute underlying funds and ETFs. BFA may be subject to
potential conflicts of interest in selecting underlying funds and ETFs
because the fees |
paid
to BFA by some underlying funds and ETFs are higher than the fees paid by
other underlying funds and ETFs. However, BFA is a fiduciary to the Fund
and is legally obligated to act in the Fund’s best interests when
selecting underlying funds and ETFs. If an underlying fund or ETF holds
interests in an affiliated fund, the Fund may be prohibited from
purchasing shares of that underlying fund or
ETF. |
∎ |
Market Risk and
Selection Risk — Market risk is the risk that one or more
markets in which the Fund invests will go down in value, including the
possibility that the markets will go down sharply and unpredictably. The
value of a security or other asset may decline due to changes in general
market conditions, economic trends or events that are not specifically
related to the issuer of the security or other asset, or factors that
affect a particular issuer or issuers, exchange, country, group of
countries, region, market, industry, group of industries, sector or asset
class. Local, regional or global events such as war, acts of terrorism,
the spread of infectious illness or other public health issues like
pandemics or epidemics, recessions, or other events could have a
significant impact on the Fund and its investments. Selection risk is the
risk that the securities selected by Fund management will underperform the
markets, the relevant indices or the securities selected by other funds
with similar investment objectives and investment strategies. This means
you may lose
money. |
∎ |
Risk of
Investing in the United States — Certain changes in the U.S.
economy, such as when the U.S. economy weakens or when its financial
markets decline, may have an adverse effect on the securities to which the
Fund has exposure. |
∎ |
Asset
Class Risk — Securities and other assets or financial
instruments in the underlying index of an Underlying Fund or in an
Underlying Fund’s portfolio may underperform in comparison to the general
financial markets, a particular financial market or other asset
classes. |
∎ |
Authorized
Participant Concentration Risk — Only an authorized
participant may engage in creation or redemption transactions directly
with an ETF, and none of those authorized participants is obligated to
engage in creation and/or redemption transactions. The Underlying Funds
that are ETFs have 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 an ETF and no other authorized participant is able to step
forward to create or redeem, the ETF shares may be more likely to trade at
a premium or discount to net asset value and possibly face trading halts
or delisting. Authorized participant concentration risk may be heightened
for ETFs that invest in securities issued by non‑U.S. issuers or other
securities or instruments that have lower trading
volumes. |
∎ |
Concentration
Risk — To the extent that an underlying index of an
Underlying Fund is concentrated in the securities of companies, a
particular market, industry, group of industries, sector or asset class,
country, region or group of countries, that Underlying Fund may be
adversely affected by the performance of those securities, may be subject
to increased price volatility and may be more susceptible to adverse
economic, market, political or regulatory occurrences affecting that
market, industry, group of industries, sector or asset class, country,
region or group of countries. |
∎ |
Currency
Risk — Because the net asset value of an Underlying Fund
that is an ETF is determined in U.S. dollars, the Underlying Fund’s net
asset value could decline if the currency of a non‑U.S. market in which
the Underlying Fund invests depreciates against the U.S. dollar or if
there are delays or limits on repatriation of such currency. Currency
exchange rates can be very volatile and can change quickly and
unpredictably. As a result, the net asset value of an Underlying Fund that
is an ETF may change quickly and without
warning. |
∎ |
Custody
Risk — Less developed securities markets are more likely to
experience problems with the clearing and settling of trades, as well as
the holding of securities by local banks, agents and
depositories. |
∎ |
Depositary
Receipts Risk — Depositary receipts are generally subject to
the same risks as the foreign securities that they evidence or into which
they may be converted. In addition to investment risks associated with the
underlying issuer, depositary receipts expose the Fund to additional risks
associated with the non‑uniform terms that apply to depositary receipt
programs, credit exposure to the depository bank and to the sponsors and
other parties with whom the depository bank establishes the programs,
currency risk and the risk of an illiquid market for depositary receipts.
The issuers of unsponsored depositary receipts are not obligated to
disclose information that is, in the United States, considered material.
Therefore, there may be less information available regarding
these |
issuers
and there may not be a correlation between such information and the market
value of the depositary receipts. While depositary receipts provide an
alternative to directly purchasing underlying foreign securities in their
respective markets and currencies, they continue to be subject to many of
the risks associated with investing directly in foreign securities,
including political, economic, and currency
risk. |
∎ |
Derivatives
Risk — The Fund’s use of derivatives may increase its costs,
reduce the Fund’s returns and/or increase volatility. Derivatives involve
significant risks,
including: |
∎ |
Emerging
Markets Risk — Emerging markets are riskier than more
developed markets because they tend to develop unevenly and may never
fully develop. Investments in emerging markets may be considered
speculative. Emerging markets are more likely to experience hyperinflation
and currency devaluations, which adversely affect returns to U.S.
investors. In addition, many emerging securities markets have far lower
trading volumes and less liquidity than developed
markets. |
∎ |
Foreign
Securities Risk — Foreign investments often involve special
risks not present in U.S. investments that can increase the chances that
the Fund will lose money. These risks
include: |
∎ |
The
Fund generally holds its foreign securities and cash in foreign banks and
securities depositories, which may be recently organized or new to the
foreign custody business and may be subject to only limited or no
regulatory oversight. |
∎ |
Changes
in foreign currency exchange rates can affect the value of the Fund’s
portfolio. |
∎ |
The
economies of certain foreign markets may not compare favorably with the
economy of the United States with respect to such issues as growth of
gross national product, reinvestment of capital, resources and balance of
payments position. |
∎ |
The
governments of certain countries, or the U.S. Government with respect to
certain countries, may prohibit or impose substantial restrictions through
capital controls and/or sanctions on foreign investments in the capital
markets or certain industries in those countries, which may prohibit or
restrict the ability to own or transfer currency, securities, derivatives
or other assets. |
∎ |
Many
foreign governments do not supervise and regulate stock exchanges, brokers
and the sale of securities to the same extent as does the United States
and may not have laws to protect investors that are comparable to U.S.
securities laws. |
∎ |
Settlement
and clearance procedures in certain foreign markets may result in delays
in payment for or delivery of securities not typically associated with
settlement and clearance of U.S.
investments. |
∎ |
The
Fund’s claims to recover foreign withholding taxes may not be successful,
and if the likelihood of recovery of foreign withholding taxes materially
decreases, due to, for example, a change in tax regulation or approach in
the foreign country, accruals in the Fund’s net asset value for such
refunds may be written down partially or in full, which will adversely
affect the Fund’s net asset
value. |
∎ |
The
European financial markets have recently experienced volatility and
adverse trends due to concerns about economic downturns in, or rising
government debt levels of, several European countries as well as acts of
war in the region. These events may spread to other countries in Europe
and may affect the value and liquidity of certain of the Fund’s
investments. |
∎ |
Geographic
Risk — Some of the companies in which the Fund invests are
located in parts of the world that have historically been prone to natural
disasters, such as earthquakes, tornadoes, volcanic eruptions, droughts,
floods, hurricanes or tsunamis, and are economically sensitive to
environmental events. Any such event may adversely impact the economies of
these geographic areas or business operations of companies in these
geographic areas, causing an adverse impact on the value of the
Fund. |
∎ |
Income Risk
— Income risk is the risk that the Fund’s yield will vary as
short-term securities in its portfolio mature and the proceeds are
reinvested in securities with different interest
rates. |
∎ |
Inflation-Indexed Bonds Risk —
The principal value of an investment is not protected or otherwise
guaranteed by virtue of the Fund’s investments in inflation-indexed
bonds. |
∎ |
Indexing
Investment Risk — The Fund is not actively managed, and BFA
generally does not attempt to take defensive positions under any market
conditions, including declining
markets. |
∎ |
Index-Related
Risk — There is no guarantee that an Underlying Fund’s
investment results will have a high degree of correlation to those of its
underlying index or that the Underlying Fund will achieve its investment
objective. Market disruptions or high volatility, other unusual market
circumstances and regulatory restrictions could have an adverse effect on
an Underlying Fund’s ability to adjust its exposure to the required levels
in order to track its underlying index. Errors in index data, index
computations or the construction of an underlying index in accordance with
its methodology may occur from time to time and may not be identified and
corrected by the index provider for a period of time or at all, which may
have an adverse impact on an Underlying Fund and its shareholders. Unusual
market conditions or other unforeseen circumstances (such as natural
disasters, political unrest or war) may impact the index provider or a
third-party data provider and could cause the index provider to postpone a
scheduled rebalance. This could cause an underlying index to vary from its
normal or expected
composition. |
∎ |
Issuer
Risk — Fund performance depends on the performance of
individual securities to which the Fund has exposure. Changes in the
financial condition or credit rating of an issuer of those securities may
cause the value of the securities to
decline. |
∎ |
Large-Capitalization Companies
Risk — Large-capitalization companies may be less able than
smaller capitalization companies to adapt to changing market conditions.
Large-capitalization companies may be more mature and subject to more
limited growth potential compared with smaller capitalization companies.
During different market cycles, the performance of large-capitalization
companies has trailed the overall performance of the broader securities
markets. |
∎ |
Large
Shareholder and Large-Scale Redemption Risk — Certain
shareholders, including a third-party investor, the Fund’s adviser or an
affiliate of the Fund’s adviser, or another entity, may from time to time
own or manage a substantial amount of Fund shares, or may invest in the
Fund and hold its investment for a limited period of time. There can be no
assurance that any large shareholder or large group of shareholders would
not redeem their investment. Redemptions by large shareholders or a large
group of shareholders could have a significant negative impact on the
Fund. Redemptions of a large number of Fund shares could require the Fund
to dispose of assets to meet the redemption requests, which can accelerate
the realization of taxable income and cause the Fund to make taxable
distributions to its shareholders earlier than the Fund otherwise would
have. In addition, under certain circumstances, non‑redeeming shareholders
may be treated as receiving a disproportionately large taxable
distribution during or with respect to such year. In some circumstances,
the Fund may hold a relatively large proportion of its assets in cash in
anticipation of large redemptions, diluting its investment returns. These
large redemptions may also force the Fund to sell portfolio securities
when it might not otherwise do so, which may negatively impact the Fund’s
NAV and increase the Fund’s brokerage costs and/or accelerate the
realization of taxable income and/or capital gains to shareholders. In
addition, large redemptions can result in the Fund’s current expenses
being allocated over a smaller asset base, which generally results in an
increase in the Fund’s expense ratio. Because large redemptions can
adversely affect a portfolio manager’s ability to implement a fund’s
investment strategy, the Fund also reserves the right to redeem in‑kind,
subject to certain conditions. |
∎ |
Leverage Risk
— Some transactions may give rise to a form of economic
leverage. These transactions may include, among others, derivatives, and
may expose the Fund to greater risk and increase its costs. The use of
leverage may cause the Fund to liquidate portfolio positions when it may
not be advantageous to do so to satisfy its obligations or to meet the
applicable requirements of the Investment Company Act of 1940, as amended
(the “Investment Company Act”), and the rules thereunder. Increases and
decreases in the value of the Fund’s portfolio will be magnified when the
Fund uses leverage. |
∎ |
Management
Risk — As an Underlying Fund may not fully replicate its
underlying index, it is subject to the risk that the Underlying Fund’s
investment manager’s investment strategy may not produce the intended
results. |
∎ |
Money Market
Securities Risk — If market conditions improve while the
Fund has invested some or all of its assets in high quality money market
securities, this strategy could result in reducing the potential gain from
the market upswing, thus reducing the Fund’s opportunity to achieve its
investment objective. |
∎ |
Mortgage- and
Asset-Backed Securities Risks — Mortgage- and asset-backed
securities represent interests in “pools” of mortgages or other assets,
including consumer loans or receivables held in trust. Mortgage- and
asset-backed securities are subject to credit, interest rate, prepayment
and extension risks. These securities also are subject to risk of default
on the underlying mortgage or asset, particularly during periods of
economic downturn. Small movements in interest rates (both increases and
decreases) may quickly and significantly reduce the value of certain
mortgage-backed securities. |
∎ |
National Closed
Market Trading Risk — To the extent that the underlying
securities or other instruments held by an Underlying Fund that is an ETF
trade on foreign exchanges or in foreign markets that may be closed when
the securities exchange on which the Underlying Fund’s shares trade is
open, there are likely to be deviations between the current price of such
an underlying security and the last quoted price for the underlying
security (i.e., an Underlying Fund’s quote from the closed foreign
market). The impact of a closed foreign market on an Underlying Fund is
likely to be greater where a large portion of the Underlying Fund’s
underlying securities or other instruments trade on that closed foreign
market or when the foreign market is closed for unscheduled reasons. These
deviations could result in premiums or discounts to one or more of the
Underlying Funds’ net asset values that may be greater than those
experienced by other ETFs. |
∎ |
Passive
Investment Risk — Because BFA does not select individual
companies in the underlying indexes for certain Underlying Funds, those
Underlying Funds may hold securities of companies that present risks that
an investment adviser researching individual securities might seek to
avoid. |
∎ |
Preferred
Securities Risk — Preferred securities may pay fixed or
adjustable rates of return. Preferred securities are subject to
issuer-specific and market risks applicable generally to equity
securities. In addition, a company’s preferred securities generally pay
dividends only after the company makes required payments to holders of its
bonds and other debt. For this reason, the value of preferred securities
will usually react more strongly than
bonds |
and
other debt to actual or perceived changes in the company’s financial
condition or prospects. Preferred securities of smaller companies may be
more vulnerable to adverse developments than preferred securities of
larger companies. |
∎ |
Privatization
Risk — Some countries in which the Fund invests have
privatized, or have begun the process of privatizing, certain entities and
industries. Privatized entities may lose money or be
re‑nationalized. |
∎ |
Real
Estate-Related Securities Risk — The main risk of real
estate-related securities is that the value of the underlying real estate
may go down. Many factors may affect real estate values. These factors
include both the general and local economies, vacancy rates, changes in
rent schedules, tenant bankruptcies, the ability to re‑lease space under
expiring leases on attractive terms, the amount of new construction in a
particular area, the laws and regulations (including zoning, environmental
and tax laws) affecting real estate and the costs of owning, maintaining
and improving real estate. The availability of mortgage financing and
changes in interest rates may also affect real estate values. If the
Fund’s real estate-related investments are concentrated in one geographic
area or in one property type, the Fund will be particularly subject to the
risks associated with that area or property type. Many issuers of real
estate-related securities are highly leveraged, which increases the risk
to holders of such securities. The value of the securities the Fund buys
will not necessarily track the value of the underlying investments of the
issuers of such securities. In addition, certain issuers of real
estate-related securities may have developed or commenced development on
properties and may develop additional properties in the future. Real
estate development involves significant risks in addition to those
involved in the ownership and operation of established properties. Real
estate securities may have limited diversification and are, therefore,
subject to risks inherent in operating and financing a limited number of
projects. Real estate securities are also subject to heavy cash flow
dependency and defaults by borrowers or
tenants. |
∎ |
REIT Investment
Risk — Investments in REITs involve unique risks. REITs may
have limited financial resources, may trade less frequently and in limited
volume, may engage in dilutive offerings of securities and may be more
volatile than other securities. REIT issuers may also fail to maintain
their exemptions from investment company registration or fail to qualify
for the “dividends paid deduction” under the Internal Revenue Code of
1986, as amended (the “Internal Revenue Code”), which allows REITs to
reduce their corporate taxable income for dividends paid to their
shareholders. |
∎ |
Representative
Sampling Risk — Representative sampling is a method of
indexing that involves investing in a representative sample of securities
that collectively have a similar investment profile to the index and
resemble the index in terms of risk factors and other key characteristics.
A passively managed
ETF may or may not hold every security in the index. When an ETF
deviates from a full replication indexing strategy to utilize a
representative sampling strategy, the ETF is subject to an increased risk
of tracking error, in that the securities selected in the aggregate for
the ETF may not have an investment profile similar to those of its
index. |
∎ |
Repurchase
Agreements Risk — If the other party to a repurchase
agreement defaults on its obligation under the agreement, the Fund may
suffer delays and incur costs or lose money in exercising its rights under
the agreement. If the seller fails to repurchase the security and the
market value of the security declines, the Fund may lose
money. |
∎ |
Shares of an
ETF May Trade at Prices Other Than Net Asset Value — Shares
of an ETF trade on exchanges at prices at, above or below their most
recent net asset value. The per share net asset value of an ETF is
calculated at the end of each business day and fluctuates with changes in
the market value of the ETF’s holdings since the most recent calculation.
The trading prices of an ETF’s shares fluctuate continuously throughout
trading hours based on market supply and demand rather than net asset
value. The trading prices of an ETF’s shares may deviate significantly
from net asset value during periods of market volatility. Any of these
factors may lead to an ETF’s shares trading at a premium or discount to
net asset value. However, because shares can be created and redeemed in
creation units, which are aggregated blocks of shares that authorized
participants who have entered into agreements with the ETF’s distributor
can purchase or redeem directly from the ETF, at net asset value (unlike
shares of many closed‑end funds, which frequently trade at appreciable
discounts from, and sometimes at premiums to, their net asset values),
large discounts or premiums to the net asset value of an ETF are not
likely to be sustained over the long-term. While the creation/redemption
feature is designed to make it likely that an ETF’s shares normally trade
on exchanges at prices close to the ETF’s next calculated net asset value,
exchange prices are not expected to correlate exactly with an ETF’s net
asset value due to timing reasons as well as market supply and demand
factors. In addition, disruptions to creations and redemptions or the
existence of extreme market volatility may result in trading prices that
differ significantly from net asset value. If a shareholder purchases at a
time when the market price is at a premium to the net asset value or sells
at a time when the market price is at a discount to the net asset value,
the shareholder may sustain losses. The use of cash creations and
redemptions may also cause the ETFs’ shares to trade in the market at
greater bid‑ask spreads or greater premiums or discounts to the ETFs’
NAV. |
∎ |
Small and
Mid-Capitalization Company Risk — Companies with small or
mid‑size market capitalizations will normally have more limited product
lines, markets and financial resources and will be dependent upon a more
limited management group than larger capitalized companies. In addition,
it is more difficult to get information
on |
smaller
companies, which tend to be less well known, have shorter operating
histories, do not have significant ownership by large investors and are
followed by relatively few securities
analysts. |
∎ |
Structured
Securities Risk — Because structured securities of the type
in which the Fund may invest typically involve no credit enhancement,
their credit risk generally will be equivalent to that of the underlying
instruments, index or reference obligation and will also be subject to
counterparty risk. The Fund may have the right to receive payments only
from the structured security, and generally does not have direct rights
against the issuer or the entity that sold the assets to be securitized.
In addition to the general risks associated with debt securities discussed
herein, structured securities carry additional risks, including, but not
limited to: the possibility that distributions from collateral securities
will not be adequate to make interest or other payments; the quality of
the collateral may decline in value or default; and the possibility that
the structured securities are subordinate to other classes. The Fund is
permitted to invest in a class of structured securities that is either
subordinated or unsubordinated to the right of payment of another class.
Subordinated structured securities typically have higher yields and
present greater risks than unsubordinated structured securities.
Structured securities are typically sold in private placement
transactions, and there currently is no active trading market for
structured securities. Structured securities are based upon the movement
of one or more factors, including currency exchange rates, interest rates,
reference bonds and stock indices, and changes in interest rates and
impact of these factors may cause significant price fluctuations.
Additionally, changes in the reference instrument or security may cause
the interest rate on the structured security to be reduced to zero.
Certain issuers of such structured securities may be deemed to be
“investment companies” as defined in the Investment Company Act. As a
result, the Fund’s investment in such securities may be limited by certain
investment restrictions contained in the Investment Company
Act. |
∎ |
Tax
Risk — Although the Fund intends to invest primarily in
securities the interest on which, in the opinion of counsel to the issuer,
is exempt from federal income tax, the Internal Revenue Service (the
“IRS”) has generally not ruled on the taxability of the securities. An
assertion by the IRS that a portfolio security is not exempt from Federal
income tax (contrary to indications from the issuer) could affect the
Fund’s and shareholder’s income tax liability for the current or past
years and could create liability for information reporting penalties. In
addition, an IRS assertion of taxability may impair the liquidity and the
fair market value of the
securities. |
∎ |
Tracking Error
Risk — Tracking error is the divergence of an Underlying
Fund’s performance from that of its underlying index. Tracking error may
occur because of differences between the securities and other instruments
held in an Underlying Fund’s portfolio and those included in its
underlying index, pricing differences (including, as applicable,
differences between a security’s price at the local market close and an
Underlying Fund’s valuation of a security at the time of calculation of an
Underlying Fund’s net asset value (“NAV”)), differences in transaction
costs, an Underlying Fund’s holding of uninvested cash, differences in
timing of the accrual of or the valuation of dividends or other
distributions, interest, the requirements to maintain pass-through tax
treatment, portfolio transactions carried out to minimize the distribution
of capital gains to shareholders, changes to an underlying index and the
cost to an Underlying Fund of complying with various new or existing
regulatory requirements. These risks may be heightened during times of
increased market volatility or other unusual market conditions. In
addition, tracking error may result because an Underlying Fund incurs fees
and expenses, while its underlying index does
not. |
∎ |
Treasury
Obligations Risk — Direct obligations of the U.S. Treasury
have historically involved little risk of loss of principal if held to
maturity. However, due to fluctuations in interest rates, the market value
of such securities may vary during the period shareholders own shares of
the Fund. In addition, notwithstanding that U.S. Treasury obligations are
backed by the full faith and credit of the United States, circumstances
could arise that could prevent the timely payment of interest or
principal, such as reaching the legislative “debt ceiling.” Such
non‑payment could result in losses to the Fund and substantial negative
consequences for the U.S. economy and the global financial
system. |
∎ |
U.S. Government
Issuer Risk — Treasury obligations may differ in their
interest rates, maturities, times of issuance and other characteristics.
Obligations of U.S. Government agencies and authorities are supported by
varying degrees of credit but generally are not backed by the full faith
and credit of the U.S. Government. No assurance can be given that the U.S.
Government will provide financial support to its agencies and authorities
if it is not obligated by law to do
so. |
∎ |
Valuation Risk
— The price an Underlying Fund could receive upon the sale
of a security or other asset may differ from the Underlying Fund’s
valuation of the security or other asset and from the value used by its
underlying index, particularly for securities or other assets that trade
in low volume or volatile markets or that are valued using a fair value
methodology as a result of trade suspensions or for other reasons. In
addition, the value of the securities or other assets in an Underlying
Fund’s portfolio may change on days or during time periods when
shareholders will not be able to purchase or sell the Underlying Fund’s
shares. Authorized Participants who purchase or redeem Underlying Fund
shares on days when an Underlying Fund is holding fair-valued securities
may receive fewer or more shares, or lower or higher redemption proceeds,
than they would have received had the securities not been fair valued or
been valued using a different methodology. The ability to value
investments may be impacted by technological issues or errors by pricing
services or other third-party service
providers. |
∎ |
Variable and
Floating Rate Instrument Risk — Variable and floating rate
securities provide for periodic adjustment in the interest rate paid on
the securities. These securities may be subject to greater illiquidity
risk than other fixed income securities, meaning the absence of an active
market for these securities could make it difficult for the Fund to
dispose of them at any given
time. |
|
1 Year | 5 Years | 10 Years | |||||||||
LifePath
Index Retirement Fund — Investor A Shares |
||||||||||||
Return
Before Taxes |
% | % | % | |||||||||
Return
After Taxes on Distributions |
% | % | % | |||||||||
Return
After Taxes on Distributions and Sale of Fund Shares |
% | % | % | |||||||||
LifePath
Index Retirement Fund — Institutional Shares |
||||||||||||
Return
Before Taxes |
% | % | % | |||||||||
LifePath
Index Retirement Fund Custom Benchmark (Reflects no deduction for fees, expenses or taxes) |
% | % | % | |||||||||
Bloomberg
U.S. Aggregate Bond Index (Reflects no deduction for fees, expenses or taxes) |
% | % | % |
Name |
Portfolio Manager of the Fund Since | Title | ||
Chris
Chung, CFA |
2020 | Managing Director of BlackRock, Inc. | ||
Lisa
O’Connor, CFA |
2020 | Managing Director of BlackRock, Inc. | ||
Greg
Savage, CFA |
2018 | Managing Director of BlackRock, Inc. | ||
Paul
Whitehead |
2023 | Managing Director of BlackRock, Inc. |
Investor A Shares | Institutional Shares | |||
Minimum Initial Investment |
$1,000
for all accounts except:
• $50,
if establishing an Automatic Investment Plan.
• There
is no investment minimum for employer-sponsored retirement plans
(not including SEP IRAs, SIMPLE IRAs or SARSEPs).
• There
is no investment minimum for certain fee-based programs. |
There
is no minimum initial investment for:
• Employer-sponsored
retirement plans (not including SEP IRAs, SIMPLE IRAs or SARSEPs), state
sponsored 529 college savings plans, collective trust funds, investment
companies or other pooled investment vehicles, unaffiliated thrifts and
unaffiliated banks and trust companies, each of which may purchase shares
of the Fund through a Financial Intermediary that has entered into an
agreement with the Fund’s distributor to purchase such shares.
• Clients
of Financial Intermediaries that: (i) charge such clients a fee for
advisory, investment consulting, or similar services or (ii) have entered
into an agreement with the Fund’s distributor to offer Institutional
Shares through a no-load program or investment platform.
• Clients
investing through a self-directed IRA brokerage account program sponsored
by a retirement plan record-keeper, provided that such program offers only
mutual fund options and that the program maintains an account with the
Fund on an omnibus basis.
$2
million for individuals and “Institutional Investors,” which include, but
are not limited to, endowments, foundations, family offices, local, city,
and state governmental institutions, corporations and insurance company
separate accounts who may purchase shares of the Fund through a Financial
Intermediary that has entered into an agreement with the Fund’s
distributor to purchase such shares.
$1,000
for:
• Clients
investing through Financial Intermediaries that offer such shares on a
platform that charges a transaction based sales commission outside of the
Fund. | ||
• Tax-qualified
accounts for insurance agents that are registered representatives of an
insurance company’s broker-dealer that has entered into an agreement with
the Fund’s distributor to offer Institutional Shares, and the family
members of such persons.
| ||||
Minimum Additional Investment | $50 for all accounts (with the exception of certain employer-sponsored retirement plans which may have a lower minimum). | No subsequent minimum. |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
Investor A Shares |
Institutional Shares | ||||||||
Management
Fee1 |
||||||||||
Distribution
and/or Service (12b-1) Fees |
||||||||||
Other
Expenses1,3 |
||||||||||
Administration
Fees1 |
||||||||||
Independent
Expenses3 |
||||||||||
Acquired
Fund Fees and Expenses1,2 |
||||||||||
Total
Annual Fund Operating Expenses2 |
||||||||||
Fee
Waivers and/or Expense Reimbursements1,3 |
( |
( |
||||||||
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements1,3 |
1 | As
described in the “Management of the Funds” section of the Fund’s
prospectus beginning on page 181, BFA and BlackRock Advisors, LLC (“BAL”)
have contractually agreed to reimburse the Fund for Acquired Fund Fees and
Expenses up to a maximum amount equal to the combined Management Fee and
Administration Fee of each share class through June 30, 2025. In addition,
BFA has contractually agreed to waive its management fees by the amount of
investment advisory fees the Fund pays to BFA indirectly through its
investment in money market funds managed by BFA or its affiliates, through
|
2 |
3 | Independent
Expenses consist of the Fund’s allocable portion of the fees and expenses
of the independent trustees of the Trust, counsel to such independent
trustees and the independent registered public accounting firm that
provides audit services to the Fund. BAL and BFA have contractually agreed
to reimburse, or provide offsetting credits to, the Fund for Independent
Expenses through June 30, 2034. After giving effect to such contractual
arrangements, Independent Expenses will be 0.00%. Such contractual
arrangements may not be terminated prior to July 1, 2034 without
the consent of the Board of Trustees of the
Trust. |
1 Year | 3 Years | 5 Years | 10 Years | |||||||||||||
Investor
A Shares |
$ |
$ | $ | $ | ||||||||||||
Institutional
Shares |
$ | $ | $ | $ |
Years Until Retirement | Equity Funds (Includes REITs) |
Fixed-Income Funds | ||||||||
45 |
99 | % | 1 | % | ||||||
40 |
99 | % | 1 | % | ||||||
35 |
99 | % | 1 | % | ||||||
30 |
96 | % | 4 | % | ||||||
25 |
89 | % | 11 | % | ||||||
20 |
79 | % | 21 | % | ||||||
15 |
68 | % | 32 | % | ||||||
10 |
56 | % | 44 | % | ||||||
5 |
43 | % | 57 | % | ||||||
0 |
40 | % | 60 | % |
∎ |
Equity
Securities Risk — Stock markets are volatile. The price of
equity securities fluctuates based on changes in a company’s financial
condition and overall market and economic
conditions. |
∎ |
Debt Securities
Risk — Debt securities, such as bonds, involve risks, such
as credit risk, interest rate risk, extension risk, and prepayment risk,
each of which are described in further detail
below: |
∎ |
Investments in
Underlying Funds Risk — Because the Fund invests
substantially all of its assets in Underlying Funds, its investment
performance is related to the performance of the Underlying Funds. The
Fund’s net asset value will change with changes in the value of the
Underlying Funds and other securities in which it invests. An investment
in the Fund will entail more direct and indirect costs and expenses than a
direct investment in the Underlying
Funds. |
∎ |
Allocation
Risk — The Fund’s ability to achieve its investment
objective depends upon the Fund’s asset class allocation and the mix of
Underlying Funds. There is a risk that the asset class allocation or the
combination of Underlying Funds may be incorrect in view of actual market
conditions. In addition, the asset allocation or the combination of
Underlying Funds determined by BFA could result in underperformance as
compared to funds with similar investment objectives and
strategies. |
∎ |
Retirement
Income Risk — The Fund does not provide a guarantee that
sufficient capital appreciation will be achieved to provide adequate
income at and through retirement. The Fund also does not ensure that you
will have assets in your account sufficient to cover your retirement
expenses or that you will have enough saved to be able to retire in the
target year identified in the Fund’s name; this will depend on the amount
of money you have invested in the Fund, the length of time you have held
your investment, the returns of the markets over time, the amount you
spend in retirement, and your other assets and income
sources. |
∎ |
Affiliated Fund
Risk — In managing the Fund, BFA will have authority to
select and substitute underlying funds and ETFs. BFA may be subject to
potential conflicts of interest in selecting underlying funds and ETFs
because the fees paid to BFA by some underlying funds and ETFs are higher
than the fees paid by other underlying funds and ETFs. However, BFA is a
fiduciary to the Fund and is legally obligated to act in the Fund’s best
interests when selecting underlying funds and ETFs. If an underlying fund
or ETF holds interests in an affiliated fund, the Fund may be prohibited
from purchasing shares of that underlying fund or
ETF. |
∎ |
Market Risk and
Selection Risk — Market risk is the risk that one or more
markets in which the Fund invests will go down in value, including the
possibility that the markets will go down sharply and unpredictably. The
value of a security or other asset may decline due to changes in general
market conditions, economic trends or events that are not specifically
related to the issuer of the security or other asset, or factors that
affect a particular issuer or issuers, exchange, country, group of
countries, region, market, industry, group of industries, sector or asset
class. Local, regional or global events such as war, acts of terrorism,
the spread of infectious illness or other public health issues like
pandemics or epidemics, recessions, or other events could have a
significant impact on the Fund and its investments. Selection risk is the
risk that the securities selected by Fund management will underperform the
markets, the relevant indices or the securities selected by other funds
with similar investment objectives and investment strategies. This means
you may lose
money. |
∎ |
Risk of
Investing in the United States — Certain changes in the U.S.
economy, such as when the U.S. economy weakens or when its financial
markets decline, may have an adverse effect on the securities to which the
Fund has exposure. |
∎ |
Asset
Class Risk — Securities and other assets or financial
instruments in the underlying index of an Underlying Fund or in an
Underlying Fund’s portfolio may underperform in comparison to the general
financial markets, a particular financial market or other asset
classes. |
∎ |
Authorized
Participant Concentration Risk — Only an authorized
participant may engage in creation or redemption transactions directly
with an ETF, and none of those authorized participants is obligated to
engage in creation and/or redemption transactions. The Underlying Funds
that are ETFs have 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 an ETF and no other authorized participant is able to step
forward to create or redeem, the ETF shares may be more likely to trade at
a premium or discount to net asset value and possibly face trading halts
or delisting. Authorized participant concentration risk may be heightened
for ETFs that invest in securities issued by non-U.S. issuers or other
securities or instruments that have lower trading
volumes. |
∎ |
Concentration
Risk — To the extent that an underlying index of an
Underlying Fund is concentrated in the securities of companies, a
particular market, industry, group of industries, sector or asset class,
country, region or group of countries, that Underlying Fund may be
adversely affected by the performance of those securities, may be subject
to increased price volatility and may be more susceptible to adverse
economic, market, political or regulatory occurrences affecting that
market, industry, group of industries, sector or asset class, country,
region or group of countries. |
∎ |
Currency
Risk — Because the net asset value of an Underlying Fund
that is an ETF is determined in U.S. dollars, the Underlying Fund’s net
asset value could decline if the currency of a non-U.S. market in which
the Underlying Fund invests depreciates against the U.S. dollar or if
there are delays or limits on repatriation of such currency. Currency
exchange rates can be very volatile and can change quickly and
unpredictably. As a result, the net asset value of an Underlying Fund that
is an ETF may change quickly and without
warning. |
∎ |
Custody
Risk — Less developed securities markets are more likely to
experience problems with the clearing and settling of trades, as well as
the holding of securities by local banks, agents and
depositories. |
∎ |
Depositary
Receipts Risk — Depositary receipts are generally subject to
the same risks as the foreign securities that they evidence or into which
they may be converted. In addition to investment risks associated with the
underlying issuer, depositary receipts expose the Fund to additional risks
associated with the non-uniform terms that apply to depositary receipt
programs, credit exposure to the depository bank and to the sponsors and
other parties with whom the depository bank establishes the programs,
currency risk and the risk of an illiquid market for depositary receipts.
The issuers of unsponsored depositary receipts are not obligated to
disclose information that is, in the United States, considered material.
Therefore, there may be less information available regarding these issuers
and there may not be a correlation between such information and the market
value of the depositary receipts. While depositary receipts provide an
alternative to directly purchasing underlying foreign securities in their
respective markets and currencies, they continue to be subject to many of
the risks associated with investing directly in foreign securities,
including political, economic, and currency
risk. |
∎ |
Derivatives
Risk — The Fund’s use of derivatives may increase its costs,
reduce the Fund’s returns and/or increase volatility. Derivatives involve
significant risks,
including: |
∎ |
Emerging
Markets Risk — Emerging markets are riskier than more
developed markets because they tend to develop unevenly and may never
fully develop. Investments in emerging markets may be considered
speculative. Emerging markets are more likely to experience hyperinflation
and currency devaluations, which adversely affect returns to U.S.
investors. In addition, many emerging securities markets have far lower
trading volumes and less liquidity than developed
markets. |
∎ |
Foreign
Securities Risk — Foreign investments often involve special
risks not present in U.S. investments that can increase the chances that
the Fund will lose money. These risks
include: |
∎ |
The
Fund generally holds its foreign securities and cash in foreign banks and
securities depositories, which may be recently organized or new to the
foreign custody business and may be subject to only limited or no
regulatory oversight. |
∎ |
Changes
in foreign currency exchange rates can affect the value of the Fund’s
portfolio. |
∎ |
The
economies of certain foreign markets may not compare favorably with the
economy of the United States with respect to such issues as growth of
gross national product, reinvestment of capital, resources and balance of
payments position. |
∎ |
The
governments of certain countries, or the U.S. Government with respect to
certain countries, may prohibit or impose substantial restrictions through
capital controls and/or sanctions on foreign investments in the capital
markets or certain industries in those countries, which may prohibit or
restrict the ability to own or transfer currency, securities, derivatives
or other assets. |
∎ |
Many
foreign governments do not supervise and regulate stock exchanges, brokers
and the sale of securities to the same extent as does the United States
and may not have laws to protect investors that are comparable to U.S.
securities laws. |
∎ |
Settlement
and clearance procedures in certain foreign markets may result in delays
in payment for or delivery of securities not typically associated with
settlement and clearance of U.S.
investments. |
∎ |
The
Fund’s claims to recover foreign withholding taxes may not be successful,
and if the likelihood of recovery of foreign withholding taxes materially
decreases, due to, for example, a change in tax regulation or approach in
the foreign country, accruals in the Fund’s net asset value for such
refunds may be written down partially or in full, which will adversely
affect the Fund’s net asset
value. |
∎ |
The
European financial markets have recently experienced volatility and
adverse trends due to concerns about economic downturns in, or rising
government debt levels of, several European countries as well as acts of
war in the region. These events may spread to other countries in Europe
and may affect the value and liquidity of certain of the Fund’s
investments. |
∎ |
Geographic
Risk — Some of the companies in which the Fund invests are
located in parts of the world that have historically been prone to natural
disasters, such as earthquakes, tornadoes, volcanic eruptions, droughts,
floods, hurricanes or tsunamis, and are economically sensitive to
environmental events. Any such event may adversely impact the economies of
these geographic areas or business operations of companies in these
geographic areas, causing an adverse impact on the value of the
Fund. |
∎ |
Income Risk
— Income risk is the risk that the Fund’s yield will vary as
short-term securities in its portfolio mature and the proceeds are
reinvested in securities with different interest
rates. |
∎ |
Inflation-Indexed Bonds Risk —
The principal value of an investment is not protected or otherwise
guaranteed by virtue of the Fund’s investments in inflation-indexed
bonds. |
∎ |
Indexing
Investment Risk — The Fund is not actively managed, and BFA
generally does not attempt to take defensive positions under any market
conditions, including declining
markets. |
∎ |
Index-Related
Risk — There is no guarantee that an Underlying Fund’s
investment results will have a high degree of correlation to those of its
underlying index or that the Underlying Fund will achieve its investment
objective. Market disruptions or high volatility, other unusual market
circumstances and regulatory restrictions could have an adverse effect on
an Underlying Fund’s ability to adjust its exposure to the required levels
in order to track its underlying index. Errors in index data, index
computations or the construction of an underlying index in accordance with
its methodology may occur from time to time and may not be identified and
corrected by the index provider for a period of time or at all, which may
have an adverse impact on an Underlying Fund and its shareholders. Unusual
market conditions or other unforeseen circumstances (such as natural
disasters, political unrest or war) may impact the index provider or a
third-party data provider and could cause the index provider to postpone a
scheduled rebalance. This could cause an underlying index to vary from its
normal or expected
composition. |
∎ |
Issuer
Risk — Fund performance depends on the performance of
individual securities to which the Fund has exposure. Changes in the
financial condition or credit rating of an issuer of those securities may
cause the value of the securities to
decline. |
∎ |
Large-Capitalization Companies
Risk — Large-capitalization companies may be less able than
smaller capitalization companies to adapt to changing market conditions.
Large-capitalization companies may be more mature and subject to more
limited growth potential compared with smaller capitalization companies.
During different market cycles, the performance of large-capitalization
companies has trailed the overall performance of the broader securities
markets. |
∎ |
Large
Shareholder and Large-Scale Redemption Risk — Certain
shareholders, including a third-party investor, the Fund’s adviser or an
affiliate of the Fund’s adviser, or another entity, may from time to time
own or manage a substantial amount of Fund shares, or may invest in the
Fund and hold its investment for a limited period of time. There can be no
assurance that any large shareholder or large group of shareholders would
not redeem their investment. Redemptions by large shareholders or a large
group of shareholders could have a significant negative impact on the
Fund. Redemptions of a large number of Fund shares could require the Fund
to dispose of assets to meet the redemption requests, which can accelerate
the realization of taxable income and cause the Fund to make taxable
distributions to its shareholders earlier than the Fund otherwise would
have. In addition, under certain circumstances, non-redeeming shareholders
may be treated as receiving a disproportionately large taxable
distribution during or with respect to such year. In some circumstances,
the Fund may hold a relatively large proportion of its assets in cash in
anticipation of large redemptions, diluting its investment returns. These
large redemptions may also force the Fund to sell portfolio securities
when it might not otherwise do so, which may negatively impact the Fund’s
NAV and increase the Fund’s brokerage costs and/or accelerate the
realization of taxable income and/or capital gains to shareholders. In
addition, large redemptions can result in the Fund’s current expenses
being allocated over a smaller asset base, which generally results in an
increase in the Fund’s expense ratio. Because large redemptions can
adversely affect a portfolio manager’s ability to implement a fund’s
investment strategy, the Fund also reserves the right to redeem in-kind,
subject to certain conditions. |
∎ |
Leverage Risk
— Some transactions may give rise to a form of economic
leverage. These transactions may include, among others, derivatives, and
may expose the Fund to greater risk and increase its costs. The use of
leverage may cause the Fund to liquidate portfolio positions when it may
not be advantageous to do so to satisfy its obligations or to meet the
applicable requirements of the Investment Company Act, and the rules
thereunder. Increases and decreases in the value of the Fund’s portfolio
will be magnified when the Fund uses
leverage. |
∎ |
Management
Risk — As an Underlying Fund may not fully replicate its
underlying index, it is subject to the risk that the Underlying Fund’s
investment manager’s investment strategy may not produce the intended
results. |
∎ |
Money Market
Securities Risk — If market conditions improve while the
Fund has invested some or all of its assets in high quality money market
securities, this strategy could result in reducing the potential gain from
the market upswing, thus reducing the Fund’s opportunity to achieve its
investment objective. |
∎ |
Mortgage- and
Asset-Backed Securities Risks — Mortgage- and asset-backed
securities represent interests in “pools” of mortgages or other assets,
including consumer loans or receivables held in trust. Mortgage- and
asset-backed securities are subject to credit, interest rate, prepayment
and extension risks. These securities also are subject to risk of default
on the underlying mortgage or asset, particularly during periods of
economic downturn. Small movements in interest rates (both increases and
decreases) may quickly and significantly reduce the value of certain
mortgage-backed securities. |
∎ |
National Closed
Market Trading Risk — To the extent that the underlying
securities or other instruments held by an Underlying Fund that is an ETF
trade on foreign exchanges or in foreign markets that may be closed when
the securities exchange on which the Underlying Fund’s shares trade is
open, there are likely to be deviations between the current price of such
an underlying security and the last quoted price for the underlying
security (i.e., an Underlying Fund’s quote from the closed foreign
market). The impact of a closed foreign market on an Underlying Fund is
likely to be greater where a large portion of the Underlying Fund’s
underlying securities or other instruments trade on that closed foreign
market or when the foreign market is closed for unscheduled reasons. These
deviations could result in premiums or discounts to one or more of the
Underlying Funds’ net asset values that may be greater than those
experienced by other ETFs. |
∎ |
Passive
Investment Risk — Because BFA does not select individual
companies in the underlying indexes for certain Underlying Funds, those
Underlying Funds may hold securities of companies that present risks that
an investment adviser researching individual securities might seek to
avoid. |
∎ |
Preferred
Securities Risk — Preferred securities may pay fixed or
adjustable rates of return. Preferred securities are subject to
issuer-specific and market risks applicable generally to equity
securities. In addition, a company’s preferred securities generally pay
dividends only after the company makes required payments to holders of its
bonds and other debt. For this reason, the value of preferred securities
will usually react more strongly than bonds and other debt to actual or
perceived changes in the company’s financial condition or prospects.
Preferred securities of smaller companies may be more vulnerable to
adverse developments than preferred securities of larger
companies. |
∎ |
Privatization
Risk — Some countries in which the Fund invests have
privatized, or have begun the process of privatizing, certain entities and
industries. Privatized entities may lose money or be
re-nationalized. |
∎ |
Real
Estate-Related Securities Risk — The main risk of real
estate-related securities is that the value of the underlying real estate
may go down. Many factors may affect real estate values. These factors
include both the general and local economies, vacancy rates, changes in
rent schedules, tenant bankruptcies, the ability to re-lease space under
expiring leases on attractive terms, the amount of new construction in a
particular area, the laws and regulations (including zoning, environmental
and tax laws) affecting real estate and the costs of owning, maintaining
and improving real estate. The availability of mortgage financing and
changes in interest rates may also affect real estate values. If the
Fund’s real estate-related investments are concentrated in one geographic
area or in one property type, the Fund will be particularly subject to the
risks associated with that area or property type. Many issuers of real
estate-related securities are highly leveraged, which increases the risk
to holders of such securities. The value of the securities the Fund buys
will not necessarily track the value of the underlying investments of the
issuers of such securities. In addition, certain issuers of real
estate-related securities may have developed or commenced development on
properties and may develop additional properties in the future. Real
estate development involves significant risks in addition to those
involved in the ownership and operation of established properties. Real
estate securities may have limited diversification and are, therefore,
subject to risks inherent in operating and financing a limited number of
projects. Real estate securities are also subject to heavy cash flow
dependency and defaults by borrowers or
tenants. |
∎ |
REIT Investment
Risk — Investments in REITs involve unique risks. REITs may
have limited financial resources, may trade less frequently and in limited
volume, may engage in dilutive offerings of securities and may be more
volatile than other securities. REIT issuers may also fail to maintain
their exemptions from investment company registration or fail to qualify
for the “dividends paid deduction” under the Internal Revenue Code, which
allows REITs to reduce their corporate taxable income for dividends paid
to their shareholders. |
∎ |
Representative
Sampling Risk — Representative sampling is a method of
indexing that involves investing in a representative sample of securities
that collectively have a similar investment profile to the index and
resemble the index in terms of risk factors and other key characteristics.
A passively managed
ETF may or may not hold every security in the index. When an ETF
deviates from a full replication indexing strategy to utilize a
representative sampling strategy, the ETF is subject to an increased risk
of tracking error, in that the securities selected in the aggregate for
the ETF may not have an investment profile similar to those of its
index. |
∎ |
Repurchase
Agreements Risk — If the other party to a repurchase
agreement defaults on its obligation under the agreement, the Fund may
suffer delays and incur costs or lose money in exercising its rights under
the agreement. If the seller fails to repurchase the security and the
market value of the security declines, the Fund may lose
money. |
∎ |
Shares of an
ETF May Trade at Prices Other Than Net Asset Value — Shares
of an ETF trade on exchanges at prices at, above or below their most
recent net asset value. The per share net asset value of an ETF is
calculated at the end of each business day and fluctuates with changes in
the market value of the ETF’s holdings since the most recent calculation.
The trading prices of an ETF’s shares fluctuate continuously throughout
trading hours based on market supply and demand rather than net asset
value. The trading prices of an ETF’s shares may deviate significantly
from net asset value during periods of market volatility. Any of these
factors may lead to an ETF’s shares trading at a premium or discount to
net asset value. However, because shares can be created and redeemed in
creation units, which are aggregated blocks of shares that authorized
participants who have entered into agreements with the ETF’s distributor
can purchase or redeem directly from the ETF, at net asset value (unlike
shares of many closed-end funds, which frequently trade at appreciable
discounts from, and sometimes at premiums to, their net asset values),
large discounts or premiums to the net asset value of an ETF are not
likely to be sustained over the long-term. While the creation/redemption
feature is designed to make it likely that an ETF’s shares normally trade
on exchanges at prices close to the ETF’s next calculated net asset value,
exchange prices are not expected to correlate exactly with an ETF’s net
asset value due to timing reasons as well as market supply and demand
factors. In addition, disruptions to creations and redemptions or the
existence of extreme market volatility may result in trading prices that
differ significantly from net asset value. If a shareholder purchases at a
time when the market price is at a premium to the net asset value or sells
at a time when the market price is at a discount to the net asset value,
the shareholder may sustain losses. The use of cash creations and
redemptions may also cause the ETFs’ shares to trade in the market at
greater bid-ask spreads or greater premiums or discounts to the ETFs’
NAV. |
∎ |
Small and
Mid-Capitalization Company Risk — Companies with small or
mid-size market capitalizations will normally have more limited product
lines, markets and financial resources and will be dependent upon a more
limited management group than larger capitalized companies. In addition,
it is more difficult to get information on smaller companies, which tend
to be less well known, have shorter operating histories, do not have
significant ownership by large investors and are followed by relatively
few securities analysts. |
∎ |
Structured
Securities Risk — Because structured securities of the type
in which the Fund may invest typically involve no credit enhancement,
their credit risk generally will be equivalent to that of the underlying
instruments, index or reference obligation and will also be subject to
counterparty risk. The Fund may have the right to receive payments only
from the structured security, and generally does not have direct rights
against the issuer or the entity that sold the assets to be securitized.
In addition to the general risks associated with debt securities
discussed |
herein,
structured securities carry additional risks, including, but not limited
to: the possibility that distributions from collateral securities will not
be adequate to make interest or other payments; the quality of the
collateral may decline in value or default; and the possibility that the
structured securities are subordinate to other classes. The Fund is
permitted to invest in a class of structured securities that is either
subordinated or unsubordinated to the right of payment of another class.
Subordinated structured securities typically have higher yields and
present greater risks than unsubordinated structured securities.
Structured securities are typically sold in private placement
transactions, and there currently is no active trading market for
structured securities. Structured securities are based upon the movement
of one or more factors, including currency exchange rates, interest rates,
reference bonds and stock indices, and changes in interest rates and
impact of these factors may cause significant price fluctuations.
Additionally, changes in the reference instrument or security may cause
the interest rate on the structured security to be reduced to zero.
Certain issuers of such structured securities may be deemed to be
“investment companies” as defined in the Investment Company Act. As a
result, the Fund’s investment in such securities may be limited by certain
investment restrictions contained in the Investment Company
Act. |
∎ |
Tax
Risk — Although the Fund intends to invest primarily in
securities the interest on which, in the opinion of counsel to the issuer,
is exempt from federal income tax, the IRS has generally not ruled on the
taxability of the securities. An assertion by the IRS that a portfolio
security is not exempt from Federal income tax (contrary to indications
from the issuer) could affect the Fund’s and shareholder’s income tax
liability for the current or past years and could create liability for
information reporting penalties. In addition, an IRS assertion of
taxability may impair the liquidity and the fair market value of the
securities. |
∎ |
Tracking Error
Risk — Tracking error is the divergence of an Underlying
Fund’s performance from that of its underlying index. Tracking error may
occur because of differences between the securities and other instruments
held in an Underlying Fund’s portfolio and those included in its
underlying index, pricing differences (including, as applicable,
differences between a security’s price at the local market close and an
Underlying Fund’s valuation of a security at the time of calculation of an
Underlying Fund’s NAV), differences in transaction costs, an Underlying
Fund’s holding of uninvested cash, differences in timing of the accrual of
or the valuation of dividends or other distributions, interest, the
requirements to maintain pass-through tax treatment, portfolio
transactions carried out to minimize the distribution of capital gains to
shareholders, changes to an underlying index and the cost to an Underlying
Fund of complying with various new or existing regulatory requirements.
These risks may be heightened during times of increased market volatility
or other unusual market conditions. In addition, tracking error may result
because an Underlying Fund incurs fees and expenses, while its underlying
index does not. |
∎ |
Treasury
Obligations Risk — Direct obligations of the U.S. Treasury
have historically involved little risk of loss of principal if held to
maturity. However, due to fluctuations in interest rates, the market value
of such securities may vary during the period shareholders own shares of
the Fund. In addition, notwithstanding that U.S. Treasury obligations are
backed by the full faith and credit of the United States, circumstances
could arise that could prevent the timely payment of interest or
principal, such as reaching the legislative “debt ceiling.” Such
non-payment could result in losses to the Fund and substantial negative
consequences for the U.S. economy and the global financial
system. |
∎ |
U.S. Government
Issuer Risk — Treasury obligations may differ in their
interest rates, maturities, times of issuance and other characteristics.
Obligations of U.S. Government agencies and authorities are supported by
varying degrees of credit but generally are not backed by the full faith
and credit of the U.S. Government. No assurance can be given that the U.S.
Government will provide financial support to its agencies and authorities
if it is not obligated by law to do
so. |
∎ |
Valuation Risk
— The price an Underlying Fund could receive upon the sale
of a security or other asset may differ from the Underlying Fund’s
valuation of the security or other asset and from the value used by its
underlying index, particularly for securities or other assets that trade
in low volume or volatile markets or that are valued using a fair value
methodology as a result of trade suspensions or for other reasons. In
addition, the value of the securities or other assets in an Underlying
Fund’s portfolio may change on days or during time periods when
shareholders will not be able to purchase or sell the Underlying Fund’s
shares. Authorized Participants who purchase or redeem Underlying Fund
shares on days when an Underlying Fund is holding fair-valued securities
may receive fewer or more shares, or lower or higher redemption proceeds,
than they would have received had the securities not been fair valued or
been valued using a different methodology. The ability to value
investments may be impacted by technological issues or errors by pricing
services or other third-party service
providers. |
∎ |
Variable and
Floating Rate Instrument Risk — Variable and floating rate
securities provide for periodic adjustment in the interest rate paid on
the securities. These securities may be subject to greater illiquidity
risk than other fixed income securities, meaning the absence of an active
market for these securities could make it difficult for the Fund to
dispose of them at any given
time. |
|
1 Year | 5 Years | 10 Years | |||||||||
LifePath
Index 2025 Fund — Investor A Shares |
||||||||||||
Return
Before Taxes |
% | % | % | |||||||||
Return
After Taxes on Distributions |
% | % | % | |||||||||
Return
After Taxes on Distributions and Sale of Fund Shares |
% | % | % | |||||||||
LifePath
Index 2025 Fund — Institutional Shares |
||||||||||||
Return
Before Taxes |
% | % | % | |||||||||
LifePath
Index 2025 Fund Custom Benchmark (Reflects no deduction for fees, expenses or taxes) |
% | % | % | |||||||||
Russell
1000®
Index (Reflects no deduction for fees, expenses or taxes) |
% | % | % |
Name |
Portfolio Manager of the Fund Since | Title | ||
Chris
Chung, CFA |
2020 | Managing Director of BlackRock, Inc. | ||
Lisa
O’Connor, CFA |
2020 | Managing Director of BlackRock, Inc. | ||
Greg
Savage, CFA |
2018 | Managing Director of BlackRock, Inc. | ||
Paul
Whitehead |
2023 | Managing Director of BlackRock, Inc. |
Investor A Shares | Institutional Shares | |||
Minimum Initial Investment |
$1,000
for all accounts except:
• $50,
if establishing an Automatic Investment Plan.
• There
is no investment minimum for employer-sponsored retirement plans
(not including SEP IRAs, SIMPLE IRAs or SARSEPs).
• There
is no investment minimum for certain fee-based programs. |
There
is no minimum initial investment for:
• Employer-sponsored
retirement plans (not including SEP IRAs, SIMPLE IRAs or SARSEPs), state
sponsored 529 college savings plans, collective trust funds, investment
companies or other pooled investment vehicles, unaffiliated thrifts and
unaffiliated banks and trust companies, each of which may purchase shares
of the Fund through a Financial Intermediary that has entered into an
agreement with the Fund’s distributor to purchase such shares.
• Clients
of Financial Intermediaries that: (i) charge such clients a fee for
advisory, investment consulting, or similar services or (ii) have entered
into an agreement with the Fund’s distributor to offer Institutional
Shares through a no-load program or investment platform.
• Clients
investing through a self-directed IRA brokerage account program sponsored
by a retirement plan record-keeper, provided that such program offers only
mutual fund options and that the program maintains an account with the
Fund on an omnibus basis.
$2
million for individuals and “Institutional Investors,” which include, but
are not limited to, endowments, foundations, family offices, local, city,
and state governmental institutions, corporations and insurance company
separate accounts who may purchase shares of the Fund through a Financial
Intermediary that has entered into an agreement with the Fund’s
distributor to purchase such shares.
$1,000
for:
• Clients
investing through Financial Intermediaries that offer such shares on a
platform that charges a transaction based sales commission outside of the
Fund.
• Tax-qualified
accounts for insurance agents that are registered representatives of an
insurance company’s broker-dealer that has entered into an agreement with
the Fund’s distributor to offer Institutional Shares, and the family
members of such persons. | ||
Minimum Additional Investment | $50 for all accounts (with the exception of certain employer-sponsored retirement plans which may have a lower minimum). | No subsequent minimum. |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
Investor A Shares |
Institutional Shares | ||||||||
Management
Fee1 |
||||||||||
Distribution
and/or Service (12b-1) Fees |
||||||||||
Other
Expenses1,3 |
||||||||||
Administration
Fees1 |
||||||||||
Independent
Expenses3 |
||||||||||
Acquired
Fund Fees and Expenses1,2 |
||||||||||
Total
Annual Fund Operating Expenses2 |
||||||||||
Fee
Waivers and/or Expense Reimbursements1,3 |
( |
( |
||||||||
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements1,3 |
1 |
|
2 |
|
3 |
|
1 Year | 3 Years | 5 Years | 10 Years | |||||||||||||
Investor
A Shares |
$ |
$ | $ | $ | ||||||||||||
Institutional
Shares |
$ |
$ | $ | $ |
Years Until Retirement | Equity Funds (Includes REITs) |
Fixed‑Income Funds | ||||||||
45 |
99 | % | 1 | % | ||||||
40 |
99 | % | 1 | % | ||||||
35 |
99 | % | 1 | % | ||||||
30 |
96 | % | 4 | % | ||||||
25 |
89 | % | 11 | % | ||||||
20 |
79 | % | 21 | % | ||||||
15 |
68 | % | 32 | % | ||||||
10 |
56 | % | 44 | % | ||||||
5 |
43 | % | 57 | % | ||||||
0 |
40 | % | 60 | % |
∎ |
Equity
Securities Risk — Stock markets are volatile. The price of
equity securities fluctuates based on changes in a company’s financial
condition and overall market and economic
conditions. |
∎ |
Debt Securities
Risk — Debt securities, such as bonds, involve risks, such
as credit risk, interest rate risk, extension risk, and prepayment risk,
each of which are described in further detail
below: |
∎ |
Investments in
Underlying Funds Risk — Because the Fund invests
substantially all of its assets in Underlying Funds, its investment
performance is related to the performance of the Underlying Funds. The
Fund’s net asset value will change with changes in the value of the
Underlying Funds and other securities in which it invests. An investment
in the Fund will entail more direct and indirect costs and expenses than a
direct investment in the Underlying
Funds. |
∎ |
Allocation
Risk — The Fund’s ability to achieve its investment
objective depends upon the Fund’s asset class allocation and the mix of
Underlying Funds. There is a risk that the asset class allocation or the
combination of Underlying Funds may be incorrect in view of actual market
conditions. In addition, the asset allocation or the combination of
Underlying Funds determined by BFA could result in underperformance as
compared to funds with similar investment objectives and
strategies. |
∎ |
Retirement
Income Risk — The Fund does not provide a guarantee that
sufficient capital appreciation will be achieved to provide adequate
income at and through retirement. The Fund also does not ensure that you
will have assets in your account sufficient to cover your retirement
expenses or that you will have enough saved to be able to retire in the
target year identified in the Fund’s name; this will depend on the amount
of money you have invested in the Fund, the length of time you have held
your investment, the returns of the markets over time, the amount you
spend in retirement, and your other assets and income
sources. |
∎ |
Affiliated Fund
Risk — In managing the Fund, BFA will have authority to
select and substitute underlying funds and ETFs. BFA may be subject to
potential conflicts of interest in selecting underlying funds and ETFs
because the fees paid to BFA by some underlying funds and ETFs are higher
than the fees paid by other underlying funds and ETFs. However, BFA is a
fiduciary to the Fund and is legally obligated to act in the Fund’s best
interests when selecting underlying funds and ETFs. If an underlying fund
or ETF holds interests in an affiliated fund, the Fund may be prohibited
from purchasing shares of that underlying fund or
ETF. |
∎ |
Market Risk and
Selection Risk — Market risk is the risk that one or more
markets in which the Fund invests will go down in value, including the
possibility that the markets will go down sharply and unpredictably. The
value of a security or other asset may decline due to changes in general
market conditions, economic trends or events that are not specifically
related to the issuer of the security or other asset, or factors that
affect a particular issuer or issuers, exchange, country, group of
countries, region, market, industry, group of industries, sector or asset
class. Local, regional or global events such as war, acts of terrorism,
the spread of infectious illness or other public health issues like
pandemics or epidemics, recessions, or other events could have a
significant impact on the Fund and its investments. Selection risk is the
risk that the securities selected by Fund management will underperform the
markets, the relevant indices or the securities selected by other funds
with similar investment objectives and investment strategies. This means
you may lose
money. |
∎ |
Risk of
Investing in the United States — Certain changes in the U.S.
economy, such as when the U.S. economy weakens or when its financial
markets decline, may have an adverse effect on the securities to which the
Fund has exposure. |
∎ |
Asset
Class Risk — Securities and other assets or financial
instruments in the underlying index of an Underlying Fund or in an
Underlying Fund’s portfolio may underperform in comparison to the general
financial markets, a particular financial market or other asset
classes. |
∎ |
Authorized
Participant Concentration Risk — Only an authorized
participant may engage in creation or redemption transactions directly
with an ETF, and none of those authorized participants is obligated to
engage in creation and/or redemption transactions. The Underlying Funds
that are ETFs have 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 an ETF and no other authorized participant is able to step
forward to create or redeem, the ETF shares may be more likely to trade at
a premium or discount to net asset value and possibly face trading halts
or delisting. Authorized participant concentration risk may be heightened
for ETFs that invest in securities issued by non‑U.S. issuers or other
securities or instruments that have lower trading
volumes. |
∎ |
Concentration
Risk — To the extent that an underlying index of an
Underlying Fund is concentrated in the securities of companies, a
particular market, industry, group of industries, sector or asset class,
country, region or group of countries, that Underlying Fund may be
adversely affected by the performance of those securities, may be subject
to increased price volatility and may be more susceptible to adverse
economic, market, political or regulatory occurrences affecting that
market, industry, group of industries, sector or asset class, country,
region or group of countries. |
∎ |
Currency
Risk — Because the net asset value of an Underlying Fund
that is an ETF is determined in U.S. dollars, the Underlying Fund’s net
asset value could decline if the currency of a non‑U.S. market in which
the Underlying Fund invests depreciates against the U.S. dollar or if
there are delays or limits on repatriation of such currency. Currency
exchange rates can be very volatile and can change quickly and
unpredictably. As a result, the net asset value of an Underlying Fund that
is an ETF may change quickly and without
warning. |
∎ |
Custody
Risk — Less developed securities markets are more likely to
experience problems with the clearing and settling of trades, as well as
the holding of securities by local banks, agents and
depositories. |
∎ |
Depositary
Receipts Risk — Depositary receipts are generally subject to
the same risks as the foreign securities that they evidence or into which
they may be converted. In addition to investment risks associated with the
underlying issuer, depositary receipts expose the Fund to additional risks
associated with the non‑uniform terms that apply to depositary receipt
programs, credit exposure to the depository bank and to the sponsors and
other parties with whom the depository bank establishes the programs,
currency risk and the risk of an illiquid market for depositary receipts.
The issuers of unsponsored depositary receipts are not obligated to
disclose information that is, in the United States, considered material.
Therefore, there may be less information available regarding these issuers
and there may not be a correlation between such information and the market
value of the depositary receipts. While depositary receipts provide an
alternative to directly purchasing underlying foreign securities in their
respective markets and currencies, they continue to be subject to many of
the risks associated with investing directly in foreign securities,
including political, economic, and currency
risk. |
∎ |
Derivatives
Risk — The Fund’s use of derivatives may increase its costs,
reduce the Fund’s returns and/or increase volatility. Derivatives involve
significant risks,
including: |
∎ |
Emerging
Markets Risk — Emerging markets are riskier than more
developed markets because they tend to develop unevenly and may never
fully develop. Investments in emerging markets may be considered
speculative. Emerging markets are more likely to experience hyperinflation
and currency devaluations, which adversely affect returns to U.S.
investors. In addition, many emerging securities markets have far lower
trading volumes and less liquidity than developed
markets. |
∎ |
Foreign
Securities Risk — Foreign investments often involve special
risks not present in U.S. investments that can increase the chances that
the Fund will lose money. These risks
include: |
∎ |
The
Fund generally holds its foreign securities and cash in foreign banks and
securities depositories, which may be recently organized or new to the
foreign custody business and may be subject to only limited or no
regulatory oversight. |
∎ |
Changes
in foreign currency exchange rates can affect the value of the Fund’s
portfolio. |
∎ |
The
economies of certain foreign markets may not compare favorably with the
economy of the United States with respect to such issues as growth of
gross national product, reinvestment of capital, resources and balance of
payments position. |
∎ |
The
governments of certain countries, or the U.S. Government with respect to
certain countries, may prohibit or impose substantial restrictions through
capital controls and/or sanctions on foreign investments in the capital
markets or certain industries in those countries, which may prohibit or
restrict the ability to own or transfer currency, securities, derivatives
or other assets. |
∎ |
Many
foreign governments do not supervise and regulate stock exchanges, brokers
and the sale of securities to the same extent as does the United States
and may not have laws to protect investors that are comparable to U.S.
securities laws. |
∎ |
Settlement
and clearance procedures in certain foreign markets may result in delays
in payment for or delivery of securities not typically associated with
settlement and clearance of U.S.
investments. |
∎ |
The
Fund’s claims to recover foreign withholding taxes may not be successful,
and if the likelihood of recovery of foreign withholding taxes materially
decreases, due to, for example, a change in tax regulation or approach in
the foreign country, accruals in the Fund’s net asset value for such
refunds may be written down partially or in full, which will adversely
affect the Fund’s net asset
value. |
∎ |
The
European financial markets have recently experienced volatility and
adverse trends due to concerns about economic downturns in, or rising
government debt levels of, several European countries as well as acts of
war in the region. These events may spread to other countries in Europe
and may affect the value and liquidity of certain of the Fund’s
investments. |
∎ |
Geographic
Risk — Some of the companies in which the Fund invests are
located in parts of the world that have historically been prone to natural
disasters, such as earthquakes, tornadoes, volcanic eruptions, droughts,
floods, hurricanes or tsunamis, and are economically sensitive to
environmental events. Any such event may adversely impact the economies of
these geographic areas or business operations of companies in these
geographic areas, causing an adverse impact on the value of the
Fund. |
∎ |
Income Risk
— Income risk is the risk that the Fund’s yield will vary as
short-term securities in its portfolio mature and the proceeds are
reinvested in securities with different interest
rates. |
∎ |
Inflation-Indexed Bonds Risk —
The principal value of an investment is not protected or otherwise
guaranteed by virtue of the Fund’s investments in inflation-indexed
bonds. |
∎ |
Indexing
Investment Risk — The Fund is not actively managed, and BFA
generally does not attempt to take defensive positions under any market
conditions, including declining
markets. |
∎ |
Index-Related
Risk — There is no guarantee that an Underlying Fund’s
investment results will have a high degree of correlation to those of its
underlying index or that the Underlying Fund will achieve its investment
objective. Market disruptions or high volatility, other unusual market
circumstances and regulatory restrictions could have an adverse effect on
an Underlying Fund’s ability to adjust its exposure to the required levels
in order to track its underlying index. Errors in index data, index
computations or the construction of an underlying index in accordance with
its methodology may occur from time to time and may not be identified and
corrected by the index provider for a period of time or at all, which may
have an adverse impact on an Underlying Fund and its shareholders. Unusual
market conditions or other unforeseen circumstances (such as natural
disasters, political unrest or war) may impact the index provider or a
third-party data provider and could cause the index provider to postpone a
scheduled rebalance. This could cause an underlying index to vary from its
normal or expected
composition. |
∎ |
Issuer
Risk — Fund performance depends on the performance of
individual securities to which the Fund has exposure. Changes in the
financial condition or credit rating of an issuer of those securities may
cause the value of the securities to
decline. |
∎ |
Large-Capitalization Companies
Risk — Large-capitalization companies may be less able than
smaller capitalization companies to adapt to changing market conditions.
Large-capitalization companies may be more mature and subject to more
limited growth potential compared with smaller capitalization companies.
During different market cycles, the performance of large-capitalization
companies has trailed the overall performance of the broader securities
markets. |
∎ |
Large
Shareholder and Large-Scale Redemption Risk — Certain
shareholders, including a third-party investor, the Fund’s adviser or an
affiliate of the Fund’s adviser, or another entity, may from time to time
own or manage a substantial amount of Fund shares, or may invest in the
Fund and hold its investment for a limited period of time. There can be no
assurance that any large shareholder or large group of shareholders would
not redeem their investment. Redemptions by large shareholders or a large
group of shareholders could have a significant negative impact on the
Fund. Redemptions of a large number of Fund shares could require the Fund
to dispose of assets to meet the redemption requests, which can accelerate
the realization of taxable income and cause the Fund to make taxable
distributions to its shareholders earlier than the Fund otherwise would
have. In addition, under certain circumstances, non‑redeeming shareholders
may be treated as receiving a disproportionately large taxable
distribution during or with respect to such year. In some circumstances,
the Fund may hold a relatively large proportion of its assets in cash in
anticipation of large redemptions, diluting its investment returns. These
large redemptions may also force the Fund to sell portfolio securities
when it might not otherwise do so, which may negatively impact the Fund’s
NAV and increase the Fund’s brokerage costs and/or accelerate the
realization of taxable income and/or capital gains to shareholders. In
addition, large redemptions can result in the Fund’s current expenses
being allocated over a smaller asset base, which generally results in an
increase in the Fund’s expense ratio. Because large redemptions can
adversely affect a portfolio manager’s ability to implement a fund’s
investment strategy, the Fund also reserves the right to redeem in‑kind,
subject to certain conditions. |
∎ |
Leverage Risk
— Some transactions may give rise to a form of economic
leverage. These transactions may include, among others, derivatives, and
may expose the Fund to greater risk and increase its costs. The use of
leverage may cause the Fund to liquidate portfolio positions when it may
not be advantageous to do so to satisfy its obligations or to meet the
applicable requirements of the Investment Company Act, and the rules
thereunder. Increases and decreases in the value of the Fund’s portfolio
will be magnified when the Fund uses
leverage. |
∎ |
Management
Risk — As an Underlying Fund may not fully replicate its
underlying index, it is subject to the risk that the Underlying Fund’s
investment manager’s investment strategy may not produce the intended
results. |
∎ |
Money Market
Securities Risk — If market conditions improve while the
Fund has invested some or all of its assets in high quality money market
securities, this strategy could result in reducing the potential gain from
the market upswing, thus reducing the Fund’s opportunity to achieve its
investment objective. |
∎ |
Mortgage- and
Asset-Backed Securities Risks — Mortgage- and asset-backed
securities represent interests in “pools” of mortgages or other assets,
including consumer loans or receivables held in trust. Mortgage- and
asset-backed securities are subject to credit, interest rate, prepayment
and extension risks. These securities also are subject to risk of default
on the underlying mortgage or asset, particularly during periods of
economic downturn. Small movements in interest rates (both increases and
decreases) may quickly and significantly reduce the value of certain
mortgage-backed securities. |
∎ |
National Closed
Market Trading Risk — To the extent that the underlying
securities or other instruments held by an Underlying Fund that is an ETF
trade on foreign exchanges or in foreign markets that may be closed when
the securities exchange on which the Underlying Fund’s shares trade is
open, there are likely to be deviations between the current price of such
an underlying security and the last quoted price for the underlying
security (i.e., an Underlying Fund’s quote from the closed foreign
market). The impact of a closed foreign market on an Underlying Fund is
likely to be greater where a large portion of the Underlying Fund’s
underlying securities or other instruments trade on that closed foreign
market or when the foreign market is closed for unscheduled reasons. These
deviations could result in premiums or discounts to one or more of the
Underlying Funds’ net asset values that may be greater than those
experienced by other ETFs. |
∎ |
Passive
Investment Risk — Because BFA does not select individual
companies in the underlying indexes for certain Underlying Funds, those
Underlying Funds may hold securities of companies that present risks that
an investment adviser researching individual securities might seek to
avoid. |
∎ |
Preferred
Securities Risk — Preferred securities may pay fixed or
adjustable rates of return. Preferred securities are subject to
issuer-specific and market risks applicable generally to equity
securities. In addition, a company’s preferred securities generally pay
dividends only after the company makes required payments to holders of its
bonds and other debt. For this reason, the value of preferred securities
will usually react more strongly than bonds and other debt to actual or
perceived changes in the company’s financial condition or prospects.
Preferred securities of smaller companies may be more vulnerable to
adverse developments than preferred securities of larger
companies. |
∎ |
Privatization
Risk — Some countries in which the Fund invests have
privatized, or have begun the process of privatizing, certain entities and
industries. Privatized entities may lose money or be
re‑nationalized. |
∎ |
Real
Estate-Related Securities Risk — The main risk of real
estate-related securities is that the value of the underlying real estate
may go down. Many factors may affect real estate values. These factors
include both the general and local economies, vacancy rates, changes in
rent schedules, tenant bankruptcies, the ability to re‑lease space under
expiring leases on attractive terms, the amount of new construction in a
particular area, the laws and regulations (including zoning, environmental
and tax laws) affecting real estate and the costs of owning, maintaining
and improving real estate. The availability of mortgage financing and
changes in interest rates may also affect real estate values. If the
Fund’s real estate-related investments are concentrated in one geographic
area or in one property type, the Fund will be particularly subject to the
risks associated with that area or property type. Many issuers of real
estate-related securities are highly leveraged, which increases the risk
to holders of such securities. The value of the securities the Fund buys
will not necessarily track the value of the underlying investments of the
issuers of such securities. In addition, certain issuers of real
estate-related securities may have developed or commenced development on
properties and may develop additional properties in the future. Real
estate development involves significant risks in addition to those
involved in the ownership and operation of established properties. Real
estate securities may have limited diversification and are, therefore,
subject to risks inherent in operating and financing a limited number of
projects. Real estate securities are also subject to heavy cash flow
dependency and defaults by borrowers or
tenants. |
∎ |
REIT Investment
Risk — Investments in REITs involve unique risks. REITs may
have limited financial resources, may trade less frequently and in limited
volume, may engage in dilutive offerings of securities and may be more
volatile than other securities. REIT issuers may also fail to maintain
their exemptions from investment company registration or fail to qualify
for the “dividends paid deduction” under the Internal Revenue Code, which
allows REITs to reduce their corporate taxable income for dividends paid
to their shareholders. |
∎ |
Representative
Sampling Risk — Representative sampling is a method of
indexing that involves investing in a representative sample of securities
that collectively have a similar investment profile to the index and
resemble the index in terms of risk factors and other key characteristics.
A passively managed
ETF may or may not hold every security in the index. When an ETF
deviates from a full replication indexing strategy to utilize a
representative sampling strategy, the ETF is subject to an increased risk
of tracking error, in that the securities selected in the aggregate for
the ETF may not have an investment profile similar to those of its
index. |
∎ |
Repurchase
Agreements Risk — If the other party to a repurchase
agreement defaults on its obligation under the agreement, the Fund may
suffer delays and incur costs or lose money in exercising its rights under
the agreement. If the seller fails to repurchase the security and the
market value of the security declines, the Fund may lose
money. |
∎ |
Shares of an
ETF May Trade at Prices Other Than Net Asset Value — Shares
of an ETF trade on exchanges at prices at, above or below their most
recent net asset value. The per share net asset value of an ETF is
calculated at the end of each business day and fluctuates with changes in
the market value of the ETF’s holdings since the most recent calculation.
The trading prices of an ETF’s shares fluctuate continuously throughout
trading hours based on market supply and demand rather than net asset
value. The trading prices of an ETF’s shares may deviate significantly
from net asset value during periods of market volatility. Any of these
factors may lead to an ETF’s shares trading at a premium or discount to
net asset value. However, because shares can be created and redeemed in
creation units, which are aggregated blocks of shares that authorized
participants who have entered into agreements with the ETF’s distributor
can purchase or redeem directly from the ETF, at net asset value (unlike
shares of many closed‑end funds, which frequently trade at appreciable
discounts from, and sometimes at premiums to, their net asset values),
large discounts or premiums to the net asset value of an ETF are not
likely to be sustained over the long-term. While the creation/redemption
feature is designed to make it likely that an ETF’s shares normally trade
on exchanges at prices close to the ETF’s next calculated net asset value,
exchange prices are not expected to correlate exactly with an ETF’s net
asset value due to timing reasons as well as market supply and demand
factors. In addition, disruptions to creations and redemptions or the
existence of extreme market volatility may result in trading prices that
differ significantly from net asset value. If a shareholder purchases at a
time when the market price is at a premium to the net asset value or sells
at a time when the market price is at a discount to the net asset value,
the shareholder may sustain losses. The use of cash creations and
redemptions may also cause the ETFs’ shares to trade in the market at
greater bid‑ask spreads or greater premiums or discounts to the ETFs’
NAV. |
∎ |
Small and
Mid-Capitalization Company Risk — Companies with small or
mid‑size market capitalizations will normally have more limited product
lines, markets and financial resources and will be dependent upon a more
limited management group than larger capitalized companies. In addition,
it is more difficult to get information on smaller companies, which tend
to be less well known, have shorter operating histories, do not have
significant ownership by large investors and are followed by relatively
few securities analysts. |
∎ |
Structured
Securities Risk — Because structured securities of the type
in which the Fund may invest typically involve no credit enhancement,
their credit risk generally will be equivalent to that of the underlying
instruments, index or reference obligation and will also be subject to
counterparty risk. The Fund may have the right to receive payments only
from the structured security, and generally does not have direct rights
against the issuer or the entity that sold the assets to be securitized.
In addition to the general risks associated with debt securities
discussed |
herein,
structured securities carry additional risks, including, but not limited
to: the possibility that distributions from collateral securities will not
be adequate to make interest or other payments; the quality of the
collateral may decline in value or default; and the possibility that the
structured securities are subordinate to other classes. The Fund is
permitted to invest in a class of structured securities that is either
subordinated or unsubordinated to the right of payment of another class.
Subordinated structured securities typically have higher yields and
present greater risks than unsubordinated structured securities.
Structured securities are typically sold in private placement
transactions, and there currently is no active trading market for
structured securities. Structured securities are based upon the movement
of one or more factors, including currency exchange rates, interest rates,
reference bonds and stock indices, and changes in interest rates and
impact of these factors may cause significant price fluctuations.
Additionally, changes in the reference instrument or security may cause
the interest rate on the structured security to be reduced to zero.
Certain issuers of such structured securities may be deemed to be
“investment companies” as defined in the Investment Company Act. As a
result, the Fund’s investment in such securities may be limited by certain
investment restrictions contained in the Investment Company
Act. |
∎ |
Tax
Risk — Although the Fund intends to invest primarily in
securities the interest on which, in the opinion of counsel to the issuer,
is exempt from federal income tax, the IRS has generally not ruled on the
taxability of the securities. An assertion by the IRS that a portfolio
security is not exempt from Federal income tax (contrary to indications
from the issuer) could affect the Fund’s and shareholder’s income tax
liability for the current or past years and could create liability for
information reporting penalties. In addition, an IRS assertion of
taxability may impair the liquidity and the fair market value of the
securities. |
∎ |
Tracking Error
Risk — Tracking error is the divergence of an Underlying
Fund’s performance from that of its underlying index. Tracking error may
occur because of differences between the securities and other instruments
held in an Underlying Fund’s portfolio and those included in its
underlying index, pricing differences (including, as applicable,
differences between a security’s price at the local market close and an
Underlying Fund’s valuation of a security at the time of calculation of an
Underlying Fund’s NAV), differences in transaction costs, an Underlying
Fund’s holding of uninvested cash, differences in timing of the accrual of
or the valuation of dividends or other distributions, interest, the
requirements to maintain pass-through tax treatment, portfolio
transactions carried out to minimize the distribution of capital gains to
shareholders, changes to an underlying index and the cost to an Underlying
Fund of complying with various new or existing regulatory requirements.
These risks may be heightened during times of increased market volatility
or other unusual market conditions. In addition, tracking error may result
because an Underlying Fund incurs fees and expenses, while its underlying
index does not. |
∎ |
Treasury
Obligations Risk — Direct obligations of the U.S. Treasury
have historically involved little risk of loss of principal if held to
maturity. However, due to fluctuations in interest rates, the market value
of such securities may vary during the period shareholders own shares of
the Fund. In addition, notwithstanding that U.S. Treasury obligations are
backed by the full faith and credit of the United States, circumstances
could arise that could prevent the timely payment of interest or
principal, such as reaching the legislative “debt ceiling.” Such
non‑payment could result in losses to the Fund and substantial negative
consequences for the U.S. economy and the global financial
system. |
∎ |
U.S. Government
Issuer Risk — Treasury obligations may differ in their
interest rates, maturities, times of issuance and other characteristics.
Obligations of U.S. Government agencies and authorities are supported by
varying degrees of credit but generally are not backed by the full faith
and credit of the U.S. Government. No assurance can be given that the U.S.
Government will provide financial support to its agencies and authorities
if it is not obligated by law to do
so. |
∎ |
Valuation Risk
— The price an Underlying Fund could receive upon the sale
of a security or other asset may differ from the Underlying Fund’s
valuation of the security or other asset and from the value used by its
underlying index, particularly for securities or other assets that trade
in low volume or volatile markets or that are valued using a fair value
methodology as a result of trade suspensions or for other reasons. In
addition, the value of the securities or other assets in an Underlying
Fund’s portfolio may change on days or during time periods when
shareholders will not be able to purchase or sell the Underlying Fund’s
shares. Authorized Participants who purchase or redeem Underlying Fund
shares on days when an Underlying Fund is holding fair-valued securities
may receive fewer or more shares, or lower or higher redemption proceeds,
than they would have received had the securities not been fair valued or
been valued using a different methodology. The ability to value
investments may be impacted by technological issues or errors by pricing
services or other third-party service
providers. |
∎ |
Variable and
Floating Rate Instrument Risk — Variable and floating rate
securities provide for periodic adjustment in the interest rate paid on
the securities. These securities may be subject to greater illiquidity
risk than other fixed income securities, meaning the absence of an active
market for these securities could make it difficult for the Fund to
dispose of them at any given
time. |
|
1 Year | 5 Years | 10 Years | |||||||||
LifePath
Index 2030 Fund — Investor A Shares |
||||||||||||
Return
Before Taxes |
% | % | % | |||||||||
Return
After Taxes on Distributions |
% | % | % | |||||||||
Return
After Taxes on Distributions and Sale of Fund Shares |
% | % | % | |||||||||
LifePath
Index 2030 Fund — Institutional Shares |
||||||||||||
Return
Before Taxes |
% | % | % | |||||||||
LifePath
Index 2030 Fund Custom Benchmark (Reflects no deduction for fees, expenses or taxes) |
% | % | % | |||||||||
Russell
1000®
Index (Reflects no deduction for fees, expenses or taxes) |
% | % | % |
Name |
Portfolio Manager of the Fund Since | Title | ||
Chris
Chung, CFA |
2020 | Managing Director of BlackRock, Inc. | ||
Lisa
O’Connor, CFA |
2020 | Managing Director of BlackRock, Inc. | ||
Greg
Savage, CFA |
2018 | Managing Director of BlackRock, Inc. | ||
Paul
Whitehead |
2023 | Managing Director of BlackRock, Inc. |
Investor A Shares | Institutional Shares | |||
Minimum
Initial Investment
Minimum
Initial Investment (continued) |
$1,000
for all accounts except:
• $50,
if establishing an Automatic Investment Plan.
• There
is no investment minimum for employer-sponsored retirement plans
(not including SEP IRAs, SIMPLE IRAs or SARSEPs).
• There
is no investment minimum for certain fee-based programs. |
There
is no minimum initial investment for:
• Employer-sponsored
retirement plans (not including SEP IRAs, SIMPLE IRAs or SARSEPs), state
sponsored 529 college savings plans, collective trust funds, investment
companies or other pooled investment vehicles, unaffiliated thrifts and
unaffiliated banks and trust companies, each of which may purchase shares
of the Fund through a Financial Intermediary that has entered into an
agreement with the Fund’s distributor to purchase such shares.
• Clients
of Financial Intermediaries that: (i) charge such clients a fee for
advisory, investment consulting, or similar services or (ii) have entered
into an agreement with the Fund’s distributor to offer Institutional
Shares through a no-load program or investment platform.
• Clients
investing through a self-directed IRA brokerage account program sponsored
by a retirement plan record-keeper, provided that such program offers only
mutual fund options and that the program maintains an account with the
Fund on an omnibus basis.
$2
million for individuals and “Institutional Investors,” which include, but
are not limited to, endowments, foundations, family offices, local, city,
and state governmental institutions, corporations and insurance company
separate accounts who may purchase shares of the Fund through a Financial
Intermediary that has entered into an agreement with the Fund’s
distributor to purchase such shares.
$1,000
for:
• Clients
investing through Financial Intermediaries that offer such shares on a
platform that charges a transaction based sales commission outside of the
Fund.
• Tax-qualified
accounts for insurance agents that are registered representatives of an
insurance company’s broker-dealer that has entered into an agreement with
the Fund’s distributor to offer Institutional Shares, and the family
members of such persons.
| ||
Minimum Additional Investment | $50 for all accounts (with the exception of certain employer-sponsored retirement plans which may have a lower minimum). | No subsequent minimum. |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
Investor A Shares |
Institutional Shares | ||||||||
Management
Fee1 |
||||||||||
Distribution
and/or Service (12b-1) Fees |
||||||||||
Other
Expenses1,3 |
||||||||||
Administration
Fees1 |
||||||||||
Independent
Expenses3 |
||||||||||
Acquired
Fund Fees and Expenses1,2 |
||||||||||
Total
Annual Fund Operating Expenses2 |
||||||||||
Fee
Waivers and/or Expense Reimbursements1,3 |
( |
( |
||||||||
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements1,3
|
1 | As
described in the “Management of the Funds” section of the Fund’s
prospectus beginning on page 181, BFA and BlackRock Advisors, LLC (“BAL”)
have contractually agreed to reimburse the Fund for Acquired Fund Fees and
Expenses up to a maximum amount equal to the combined Management Fee and
Administration Fee of each share class through |
2 |
3 | Independent
Expenses consist of the Fund’s allocable portion of the fees and expenses
of the independent trustees of the Trust, counsel to such independent
trustees and the independent registered public accounting firm that
provides audit services to the Fund. BAL and BFA have contractually agreed
to reimburse, or provide offsetting credits to, the Fund for Independent
Expenses through June 30, 2034. After giving effect to such contractual
arrangements, Independent Expenses will be 0.00%. Such contractual
arrangements may not be terminated prior to July 1, 2034 without the
consent of the Board of Trustees of the
Trust. |
1 Year | 3 Years | 5 Years | 10 Years | |||||||||||||
Investor
A Shares |
$ |
$ | $ | $ | ||||||||||||
Institutional
Shares |
$ |
$ | $ | $ |
Years Until Retirement | Equity Funds (Includes REITs) |
Fixed‑Income Funds | ||||||||
45 |
99 | % | 1 | % | ||||||
40 |
99 | % | 1 | % | ||||||
35 |
99 | % | 1 | % | ||||||
30 |
96 | % | 4 | % | ||||||
25 |
89 | % | 11 | % | ||||||
20 |
79 | % | 21 | % | ||||||
15 |
68 | % | 32 | % | ||||||
10 |
56 | % | 44 | % | ||||||
5 |
43 | % | 57 | % | ||||||
0 |
40 | % | 60 | % |
∎ |
Equity
Securities Risk — Stock markets are volatile. The price of
equity securities fluctuates based on changes in a company’s financial
condition and overall market and economic
conditions. |
∎ |
Debt Securities
Risk — Debt securities, such as bonds, involve risks, such
as credit risk, interest rate risk, extension risk, and prepayment risk,
each of which are described in further detail
below: |
∎ |
Investments in
Underlying Funds Risk — Because the Fund invests
substantially all of its assets in Underlying Funds, its investment
performance is related to the performance of the Underlying Funds. The
Fund’s net asset value will change with changes in the value of the
Underlying Funds and other securities in which it invests. An investment
in the Fund will entail more direct and indirect costs and expenses than a
direct investment in the Underlying
Funds. |
∎ |
Allocation
Risk — The Fund’s ability to achieve its investment
objective depends upon the Fund’s asset class allocation and the mix of
Underlying Funds. There is a risk that the asset class allocation or the
combination of Underlying Funds may be incorrect in view of actual market
conditions. In addition, the asset allocation or the combination of
Underlying Funds determined by BFA could result in underperformance as
compared to funds with similar investment objectives and
strategies. |
∎ |
Retirement
Income Risk — The Fund does not provide a guarantee that
sufficient capital appreciation will be achieved to provide adequate
income at and through retirement. The Fund also does not ensure that you
will have assets in your account sufficient to cover your retirement
expenses or that you will have enough saved to be able to retire in the
target year identified in the Fund’s name; this will depend on the amount
of money you have invested in the Fund, the length of time you have held
your investment, the returns of the markets over time, the amount you
spend in retirement, and your other assets and income
sources. |
∎ |
Affiliated Fund
Risk — In managing the Fund, BFA will have authority to
select and substitute underlying funds and ETFs. BFA may be subject to
potential conflicts of interest in selecting underlying funds and ETFs
because the fees paid to BFA by some underlying funds and ETFs are higher
than the fees paid by other underlying funds and ETFs. However, BFA is a
fiduciary to the Fund and is legally obligated to act in the Fund’s best
interests when selecting |
underlying
funds and ETFs. If an underlying fund or ETF holds interests in an
affiliated fund, the Fund may be prohibited from purchasing shares of that
underlying fund or ETF. |
∎ |
Market Risk and
Selection Risk — Market risk is the risk that one or more
markets in which the Fund invests will go down in value, including the
possibility that the markets will go down sharply and unpredictably. The
value of a security or other asset may decline due to changes in general
market conditions, economic trends or events that are not specifically
related to the issuer of the security or other asset, or factors that
affect a particular issuer or issuers, exchange, country, group of
countries, region, market, industry, group of industries, sector or asset
class. Local, regional or global events such as war, acts of terrorism,
the spread of infectious illness or other public health issues like
pandemics or epidemics, recessions, or other events could have a
significant impact on the Fund and its investments. Selection risk is the
risk that the securities selected by Fund management will underperform the
markets, the relevant indices or the securities selected by other funds
with similar investment objectives and investment strategies. This means
you may lose
money. |
∎ |
Risk of
Investing in the United States — Certain changes in the U.S.
economy, such as when the U.S. economy weakens or when its financial
markets decline, may have an adverse effect on the securities to which the
Fund has exposure. |
∎ |
Asset
Class Risk — Securities and other assets or financial
instruments in the underlying index of an Underlying Fund or in an
Underlying Fund’s portfolio may underperform in comparison to the general
financial markets, a particular financial market or other asset
classes. |
∎ |
Authorized
Participant Concentration Risk — Only an authorized
participant may engage in creation or redemption transactions directly
with an ETF, and none of those authorized participants is obligated to
engage in creation and/or redemption transactions. The Underlying Funds
that are ETFs have 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 an ETF and no other authorized participant is able to step
forward to create or redeem, the ETF shares may be more likely to trade at
a premium or discount to net asset value and possibly face trading halts
or delisting. Authorized participant concentration risk may be heightened
for ETFs that invest in securities issued by non‑U.S. issuers or other
securities or instruments that have lower trading
volumes. |
∎ |
Concentration
Risk — To the extent that an underlying index of an
Underlying Fund is concentrated in the securities of companies, a
particular market, industry, group of industries, sector or asset class,
country, region or group of countries, that Underlying Fund may be
adversely affected by the performance of those securities, may be subject
to increased price volatility and may be more susceptible to adverse
economic, market, political or regulatory occurrences affecting that
market, industry, group of industries, sector or asset class, country,
region or group of countries. |
∎ |
Currency
Risk — Because the net asset value of an Underlying Fund
that is an ETF is determined in U.S. dollars, the Underlying Fund’s net
asset value could decline if the currency of a non‑U.S. market in which
the Underlying Fund invests depreciates against the U.S. dollar or if
there are delays or limits on repatriation of such currency. Currency
exchange rates can be very volatile and can change quickly and
unpredictably. As a result, the net asset value of an Underlying Fund that
is an ETF may change quickly and without
warning. |
∎ |
Custody
Risk — Less developed securities markets are more likely to
experience problems with the clearing and settling of trades, as well as
the holding of securities by local banks, agents and
depositories. |
∎ |
Depositary
Receipts Risk — Depositary receipts are generally subject to
the same risks as the foreign securities that they evidence or into which
they may be converted. In addition to investment risks associated with the
underlying issuer, depositary receipts expose the Fund to additional risks
associated with the non‑uniform terms that apply to depositary receipt
programs, credit exposure to the depository bank and to the sponsors and
other parties with whom the depository bank establishes the programs,
currency risk and the risk of an illiquid market for depositary receipts.
The issuers of unsponsored depositary receipts are not obligated to
disclose information that is, in the United States, considered material.
Therefore, there may be less information available regarding these issuers
and there may not be a correlation between such information and the market
value of the depositary receipts. While depositary receipts provide an
alternative to directly purchasing underlying foreign securities in their
respective markets and currencies, they continue to be subject to many of
the risks associated with investing directly in foreign securities,
including political, economic, and currency
risk. |
∎ |
Derivatives
Risk — The Fund’s use of derivatives may increase its costs,
reduce the Fund’s returns and/or increase volatility. Derivatives involve
significant risks,
including: |
∎ |
Emerging
Markets Risk — Emerging markets are riskier than more
developed markets because they tend to develop unevenly and may never
fully develop. Investments in emerging markets may be considered
speculative. Emerging markets are more likely to experience hyperinflation
and currency devaluations, which adversely affect returns to U.S.
investors. In addition, many emerging securities markets have far lower
trading volumes and less liquidity than developed
markets. |
∎ |
Foreign
Securities Risk — Foreign investments often involve special
risks not present in U.S. investments that can increase the chances that
the Fund will lose money. These risks
include: |
∎ |
The
Fund generally holds its foreign securities and cash in foreign banks and
securities depositories, which may be recently organized or new to the
foreign custody business and may be subject to only limited or no
regulatory oversight. |
∎ |
Changes
in foreign currency exchange rates can affect the value of the Fund’s
portfolio. |
∎ |
The
economies of certain foreign markets may not compare favorably with the
economy of the United States with respect to such issues as growth of
gross national product, reinvestment of capital, resources and balance of
payments position. |
∎ |
The
governments of certain countries, or the U.S. Government with respect to
certain countries, may prohibit or impose substantial restrictions through
capital controls and/or sanctions on foreign investments in the capital
markets or certain industries in those countries, which may prohibit or
restrict the ability to own or transfer currency, securities, derivatives
or other assets. |
∎ |
Many
foreign governments do not supervise and regulate stock exchanges, brokers
and the sale of securities to the same extent as does the United States
and may not have laws to protect investors that are comparable to U.S.
securities laws. |
∎ |
Settlement
and clearance procedures in certain foreign markets may result in delays
in payment for or delivery of securities not typically associated with
settlement and clearance of U.S.
investments. |
∎ |
The
Fund’s claims to recover foreign withholding taxes may not be successful,
and if the likelihood of recovery of foreign withholding taxes materially
decreases, due to, for example, a change in tax regulation or approach in
the foreign country, accruals in the Fund’s net asset value for such
refunds may be written down partially or in full, which will adversely
affect the Fund’s net asset
value. |
∎ |
The
European financial markets have recently experienced volatility and
adverse trends due to concerns about economic downturns in, or rising
government debt levels of, several European countries as well as acts of
war in the region. These events may spread to other countries in Europe
and may affect the value and liquidity of certain of the Fund’s
investments. |
∎ |
Geographic
Risk — Some of the companies in which the Fund invests are
located in parts of the world that have historically been prone to natural
disasters, such as earthquakes, tornadoes, volcanic eruptions, droughts,
floods, hurricanes or tsunamis, and are economically sensitive to
environmental events. Any such event may adversely impact the economies of
these geographic areas or business operations of companies in these
geographic areas, causing an adverse impact on the value of the
Fund. |
∎ |
Income Risk
— Income risk is the risk that the Fund’s yield will vary as
short-term securities in its portfolio mature and the proceeds are
reinvested in securities with different interest
rates. |
∎ |
Inflation-Indexed Bonds Risk —
The principal value of an investment is not protected or otherwise
guaranteed by virtue of the Fund’s investments in inflation-indexed
bonds. |
∎ |
Indexing
Investment Risk — The Fund is not actively managed, and BFA
generally does not attempt to take defensive positions under any market
conditions, including declining
markets. |
∎ |
Index-Related
Risk — There is no guarantee that an Underlying Fund’s
investment results will have a high degree of correlation to those of its
underlying index or that the Underlying Fund will achieve its investment
objective. Market disruptions or high volatility, other unusual market
circumstances and regulatory restrictions could have an adverse effect on
an Underlying Fund’s ability to adjust its exposure to the required levels
in order to track its underlying index. Errors in index data, index
computations or the construction of an underlying index in accordance with
its methodology may occur from time to time and may not be identified and
corrected by the index provider for a period of time or at all, which may
have an adverse impact on an Underlying Fund and its shareholders. Unusual
market conditions or other unforeseen circumstances (such as natural
disasters, political unrest or war) may impact the index provider or a
third-party data provider and could cause the index provider to postpone a
scheduled rebalance. This could cause an underlying index to vary from its
normal or expected
composition. |
∎ |
Issuer
Risk — Fund performance depends on the performance of
individual securities to which the Fund has exposure. Changes in the
financial condition or credit rating of an issuer of those securities may
cause the value of the securities to
decline. |
∎ |
Large-Capitalization Companies
Risk — Large-capitalization companies may be less able than
smaller capitalization companies to adapt to changing market conditions.
Large-capitalization companies may be more mature and subject to more
limited growth potential compared with smaller capitalization companies.
During different market cycles, the performance of large-capitalization
companies has trailed the overall performance of the broader securities
markets. |
∎ |
Large
Shareholder and Large-Scale Redemption Risk — Certain
shareholders, including a third-party investor, the Fund’s adviser or an
affiliate of the Fund’s adviser, or another entity, may from time to time
own or manage a substantial amount of Fund shares, or may invest in the
Fund and hold its investment for a limited period of time. There can be no
assurance that any large shareholder or large group of shareholders would
not redeem their investment. Redemptions by large shareholders or a large
group of shareholders could have a significant negative impact on the
Fund. Redemptions of a large number of Fund shares could require the Fund
to dispose of assets to meet the redemption requests, which can accelerate
the realization of taxable income and cause the Fund to make taxable
distributions to its shareholders earlier than the Fund otherwise would
have. In addition, under certain circumstances, non‑redeeming shareholders
may be treated as receiving a disproportionately large taxable
distribution during or with respect to such year. In some circumstances,
the Fund may hold a relatively large proportion of its assets in cash in
anticipation of large redemptions, diluting its investment returns. These
large redemptions may also force the Fund to sell portfolio securities
when it might not otherwise do so, which may negatively impact the Fund’s
NAV and increase the Fund’s brokerage costs and/or accelerate the
realization of taxable income and/or capital gains to shareholders. In
addition, large redemptions can result in the Fund’s current expenses
being allocated over a smaller asset base, which generally results in an
increase in the Fund’s expense ratio. Because large redemptions can
adversely affect a portfolio manager’s ability to implement a fund’s
investment strategy, the Fund also reserves the right to redeem in‑kind,
subject to certain conditions. |
∎ |
Leverage Risk
— Some transactions may give rise to a form of economic
leverage. These transactions may include, among others, derivatives, and
may expose the Fund to greater risk and increase its costs. The use of
leverage may cause the Fund to liquidate portfolio positions when it may
not be advantageous to do so to satisfy its obligations or to meet the
applicable requirements of the Investment Company Act, and the rules
thereunder. Increases and decreases in the value of the Fund’s portfolio
will be magnified when the Fund uses
leverage. |
∎ |
Management
Risk — As an Underlying Fund may not fully replicate its
underlying index, it is subject to the risk that the Underlying Fund’s
investment manager’s investment strategy may not produce the intended
results. |
∎ |
Money Market
Securities Risk — If market conditions improve while the
Fund has invested some or all of its assets in high quality money market
securities, this strategy could result in reducing the potential gain from
the market upswing, thus reducing the Fund’s opportunity to achieve its
investment objective. |
∎ |
Mortgage- and
Asset-Backed Securities Risks — Mortgage- and asset-backed
securities represent interests in “pools” of mortgages or other assets,
including consumer loans or receivables held in trust. Mortgage- and
asset-backed securities are subject to credit, interest rate, prepayment
and extension risks. These securities also are subject to risk of default
on the underlying mortgage or asset, particularly during periods of
economic downturn. Small movements in interest rates (both increases and
decreases) may quickly and significantly reduce the value of certain
mortgage-backed securities. |
∎ |
National Closed
Market Trading Risk — To the extent that the underlying
securities or other instruments held by an Underlying Fund that is an ETF
trade on foreign exchanges or in foreign markets that may be closed when
the securities exchange on which the Underlying Fund’s shares trade is
open, there are likely to be deviations between the current price of such
an underlying security and the last quoted price for the underlying
security (i.e., an Underlying Fund’s quote from the closed foreign
market). The impact of a closed foreign market on an Underlying Fund is
likely to be greater where a large portion of the Underlying Fund’s
underlying securities or other instruments trade on that closed foreign
market or when the foreign market is closed for unscheduled reasons. These
deviations could result in premiums or discounts to one or more of the
Underlying Funds’ net asset values that may be greater than those
experienced by other ETFs. |
∎ |
Passive
Investment Risk — Because BFA does not select individual
companies in the underlying indexes for certain Underlying Funds, those
Underlying Funds may hold securities of companies that present risks that
an investment adviser researching individual securities might seek to
avoid. |
∎ |
Preferred
Securities Risk — Preferred securities may pay fixed or
adjustable rates of return. Preferred securities are subject to
issuer-specific and market risks applicable generally to equity
securities. In addition, a company’s preferred securities generally pay
dividends only after the company makes required payments to holders of its
bonds and other debt. For this reason, the value of preferred securities
will usually react more strongly than bonds and other debt to actual or
perceived changes in the company’s financial condition or prospects.
Preferred securities of smaller companies may be more vulnerable to
adverse developments than preferred securities of larger
companies. |
∎ |
Privatization
Risk — Some countries in which the Fund invests have
privatized, or have begun the process of privatizing, certain entities and
industries. Privatized entities may lose money or be
re‑nationalized. |
∎ |
Real
Estate-Related Securities Risk — The main risk of real
estate-related securities is that the value of the underlying real estate
may go down. Many factors may affect real estate values. These factors
include both the general and local economies, vacancy rates, changes in
rent schedules, tenant bankruptcies, the ability to re‑lease space under
expiring leases on attractive terms, the amount of new construction in a
particular area, the laws and regulations (including zoning, environmental
and tax laws) affecting real estate and the costs of owning, maintaining
and improving real estate. The availability of mortgage financing and
changes in interest rates may also affect real estate values. If the
Fund’s real estate-related investments are concentrated in one geographic
area or in one property type, the Fund will be particularly subject to the
risks associated with that area or property type. Many issuers of real
estate-related securities are highly leveraged, which increases the risk
to holders of such securities. The value of the securities the Fund buys
will not necessarily track the value of the underlying investments of the
issuers of such securities. In addition, certain issuers of real
estate-related securities may have developed or commenced development on
properties and may develop additional properties in the future. Real
estate development involves significant risks in addition to those
involved in the ownership and operation of established properties. Real
estate securities may have limited diversification and are, therefore,
subject to risks inherent in operating and financing a limited number of
projects. Real estate securities are also subject to heavy cash flow
dependency and defaults by borrowers or
tenants. |
∎ |
REIT Investment
Risk — Investments in REITs involve unique risks. REITs may
have limited financial resources, may trade less frequently and in limited
volume, may engage in dilutive offerings of securities and may be more
volatile than other securities. REIT issuers may also fail to maintain
their exemptions from investment company registration or fail to qualify
for the “dividends paid deduction” under the Internal Revenue Code, which
allows REITs to reduce their corporate taxable income for dividends paid
to their shareholders. |
∎ |
Representative
Sampling Risk — Representative sampling is a method of
indexing that involves investing in a representative sample of securities
that collectively have a similar investment profile to the index and
resemble the index in terms of risk factors and other key characteristics.
A passively managed
ETF may or may not hold every security in the index. When an ETF
deviates from a full replication indexing strategy to utilize a
representative sampling strategy, the ETF is subject to an increased risk
of tracking error, in that the securities selected in the aggregate for
the ETF may not have an investment profile similar to those of its
index. |
∎ |
Repurchase
Agreements Risk — If the other party to a repurchase
agreement defaults on its obligation under the agreement, the Fund may
suffer delays and incur costs or lose money in exercising its rights under
the agreement. If the seller fails to repurchase the security and the
market value of the security declines, the Fund may lose
money. |
∎ |
Shares of an
ETF May Trade at Prices Other Than Net Asset Value — Shares
of an ETF trade on exchanges at prices at, above or below their most
recent net asset value. The per share net asset value of an ETF is
calculated at the end of each business day and fluctuates with changes in
the market value of the ETF’s holdings since the most recent calculation.
The trading prices of an ETF’s shares fluctuate continuously throughout
trading hours based on market supply and demand rather than net asset
value. The trading prices of an ETF’s shares may deviate significantly
from net asset value during periods of market volatility. Any of these
factors may lead to an ETF’s shares trading at a premium or discount to
net asset value. However, because shares can be created and redeemed in
creation units, which are aggregated blocks of shares that authorized
participants who have entered into agreements with the ETF’s distributor
can purchase or redeem directly from the ETF, at net asset value (unlike
shares of many closed‑end funds, which frequently trade at appreciable
discounts from, and sometimes at premiums to, their net asset values),
large discounts or premiums to the net asset value of an ETF are not
likely to be sustained over the long-term. While the creation/redemption
feature is designed to make it likely that an ETF’s shares normally trade
on exchanges at prices close to the ETF’s next calculated net asset value,
exchange prices are not expected to correlate exactly with an ETF’s net
asset value due to timing reasons as well as market supply and demand
factors. In addition, disruptions to creations and redemptions or the
existence of extreme market volatility may result in trading prices that
differ significantly from net asset value. If a shareholder purchases at a
time when the market price is at a premium to the net asset value or sells
at a time when the market price is at a discount to the net asset value,
the shareholder may sustain losses. The use of cash creations and
redemptions may also cause the ETFs’ shares to trade in the market at
greater bid‑ask spreads or greater premiums or discounts to the ETFs’
NAV. |
∎ |
Small and
Mid-Capitalization Company Risk — Companies with small or
mid‑size market capitalizations will normally have more limited product
lines, markets and financial resources and will be dependent upon a more
limited management group than larger capitalized companies. In addition,
it is more difficult to get information on smaller companies, which tend
to be less well known, have shorter operating histories, do not have
significant ownership by large investors and are followed by relatively
few securities analysts. |
∎ |
Structured
Securities Risk — Because structured securities of the type
in which the Fund may invest typically involve no credit enhancement,
their credit risk generally will be equivalent to that of the underlying
instruments, index or reference obligation and will also be subject to
counterparty risk. The Fund may have the right to receive payments only
from the structured security, and generally does not have direct rights
against the issuer or the entity that sold the assets to be securitized.
In addition to the general risks associated with debt securities
discussed |
herein,
structured securities carry additional risks, including, but not limited
to: the possibility that distributions from collateral securities will not
be adequate to make interest or other payments; the quality of the
collateral may decline in value or default; and the possibility that the
structured securities are subordinate to other classes. The Fund is
permitted to invest in a class of structured securities that is either
subordinated or unsubordinated to the right of payment of another class.
Subordinated structured securities typically have higher yields and
present greater risks than unsubordinated structured securities.
Structured securities are typically sold in private placement
transactions, and there currently is no active trading market for
structured securities. Structured securities are based upon the movement
of one or more factors, including currency exchange rates, interest rates,
reference bonds and stock indices, and changes in interest rates and
impact of these factors may cause significant price fluctuations.
Additionally, changes in the reference instrument or security may cause
the interest rate on the structured security to be reduced to zero.
Certain issuers of such structured securities may be deemed to be
“investment companies” as defined in the Investment Company Act. As a
result, the Fund’s investment in such securities may be limited by certain
investment restrictions contained in the Investment Company
Act. |
∎ |
Tax
Risk — Although the Fund intends to invest primarily in
securities the interest on which, in the opinion of counsel to the issuer,
is exempt from federal income tax, the IRS has generally not ruled on the
taxability of the securities. An assertion by the IRS that a portfolio
security is not exempt from Federal income tax (contrary to indications
from the issuer) could affect the Fund’s and shareholder’s income tax
liability for the current or past years and could create liability for
information reporting penalties. In addition, an IRS assertion of
taxability may impair the liquidity and the fair market value of the
securities. |
∎ |
Tracking Error
Risk — Tracking error is the divergence of an Underlying
Fund’s performance from that of its underlying index. Tracking error may
occur because of differences between the securities and other instruments
held in an Underlying Fund’s portfolio and those included in its
underlying index, pricing differences (including, as applicable,
differences between a security’s price at the local market close and an
Underlying Fund’s valuation of a security at the time of calculation of an
Underlying Fund’s NAV), differences in transaction costs, an Underlying
Fund’s holding of uninvested cash, differences in timing of the accrual of
or the valuation of dividends or other distributions, interest, the
requirements to maintain pass-through tax treatment, portfolio
transactions carried out to minimize the distribution of capital gains to
shareholders, changes to an underlying index and the cost to an Underlying
Fund of complying with various new or existing regulatory requirements.
These risks may be heightened during times of increased market volatility
or other unusual market conditions. In addition, tracking error may result
because an Underlying Fund incurs fees and expenses, while its underlying
index does not. |
∎ |
Treasury
Obligations Risk — Direct obligations of the U.S. Treasury
have historically involved little risk of loss of principal if held to
maturity. However, due to fluctuations in interest rates, the market value
of such securities may vary during the period shareholders own shares of
the Fund. In addition, notwithstanding that U.S. Treasury obligations are
backed by the full faith and credit of the United States, circumstances
could arise that could prevent the timely payment of interest or
principal, such as reaching the legislative “debt ceiling.” Such
non‑payment could result in losses to the Fund and substantial negative
consequences for the U.S. economy and the global financial
system. |
∎ |
U.S. Government
Issuer Risk — Treasury obligations may differ in their
interest rates, maturities, times of issuance and other characteristics.
Obligations of U.S. Government agencies and authorities are supported by
varying degrees of credit but generally are not backed by the full faith
and credit of the U.S. Government. No assurance can be given that the U.S.
Government will provide financial support to its agencies and authorities
if it is not obligated by law to do
so. |
∎ |
Valuation Risk
— The price an Underlying Fund could receive upon the sale
of a security or other asset may differ from the Underlying Fund’s
valuation of the security or other asset and from the value used by its
underlying index, particularly for securities or other assets that trade
in low volume or volatile markets or that are valued using a fair value
methodology as a result of trade suspensions or for other reasons. In
addition, the value of the securities or other assets in an Underlying
Fund’s portfolio may change on days or during time periods when
shareholders will not be able to purchase or sell the Underlying Fund’s
shares. Authorized Participants who purchase or redeem Underlying Fund
shares on days when an Underlying Fund is holding fair-valued securities
may receive fewer or more shares, or lower or higher redemption proceeds,
than they would have received had the securities not been fair valued or
been valued using a different methodology. The ability to value
investments may be impacted by technological issues or errors by pricing
services or other third-party service
providers. |
∎ |
Variable and
Floating Rate Instrument Risk — Variable and floating rate
securities provide for periodic adjustment in the interest rate paid on
the securities. These securities may be subject to greater illiquidity
risk than other fixed income securities, meaning the absence of an active
market for these securities could make it difficult for the Fund to
dispose of them at any given
time. |
|
1 Year | 5 Years | 10 Years | |||||||||
LifePath
Index 2035 Fund — Investor A Shares |
||||||||||||
Return
Before Taxes |
% | % | % | |||||||||
Return
After Taxes on Distributions |
% | % | % | |||||||||
Return
After Taxes on Distributions and Sale of Fund Shares |
% | % | % | |||||||||
LifePath
Index 2035 Fund — Institutional Shares |
||||||||||||
Return
Before Taxes |
% | % | % | |||||||||
LifePath
Index 2035 Fund Custom Benchmark (Reflects no deduction for fees, expenses or taxes) |
% | % | % | |||||||||
Russell
1000®
Index (Reflects no deduction for fees, expenses or taxes) |
% | % | % |
Name |
Portfolio Manager of the Fund Since | Title | ||
Chris
Chung, CFA |
2020 | Managing Director of BlackRock, Inc. | ||
Lisa
O’Connor, CFA |
2020 | Managing Director of BlackRock, Inc. | ||
Greg
Savage, CFA |
2018 | Managing Director of BlackRock, Inc. | ||
Paul
Whitehead |
2023 | Managing Director of BlackRock, Inc. |
Investor A Shares | Institutional Shares | |||
Minimum Initial Investment |
$1,000
for all accounts except:
• $50,
if establishing an Automatic Investment Plan.
• There
is no investment minimum for employer-sponsored retirement plans
(not including SEP IRAs, SIMPLE IRAs or SARSEPs).
• There
is no investment minimum for certain fee-based programs. |
There
is no minimum initial investment for:
• Employer-sponsored
retirement plans (not including SEP IRAs, SIMPLE IRAs or SARSEPs), state
sponsored 529 college savings plans, collective trust funds, investment
companies or other pooled investment vehicles, unaffiliated thrifts and
unaffiliated banks and trust companies, each of which may purchase shares
of the Fund through a Financial Intermediary that has entered into an
agreement with the Fund’s distributor to purchase such shares.
• Clients
of Financial Intermediaries that: (i) charge such clients a fee for
advisory, investment consulting, or similar services or (ii) have
entered into an agreement with the Fund’s distributor to offer
Institutional Shares through a no-load program or investment
platform.
• Clients
investing through a self-directed IRA brokerage account program sponsored
by a retirement plan record-keeper, provided that such program offers only
mutual fund options and that the program maintains an account with the
Fund on an omnibus basis.
$2 million
for individuals and “Institutional Investors,” which include, but are not
limited to, endowments, foundations, family offices, local, city, and
state governmental institutions, corporations and insurance company
separate accounts who may purchase shares of the Fund through a Financial
Intermediary that has entered into an agreement with the Fund’s
distributor to purchase such shares.
$1,000
for:
• Clients
investing through Financial Intermediaries that offer such shares on a
platform that charges a transaction based sales commission outside of the
Fund. | ||
• Tax-qualified
accounts for insurance agents that are registered representatives of an
insurance company’s broker-dealer that has entered into an agreement with
the Fund’s distributor to offer Institutional Shares, and the family
members of such persons. | ||||
Minimum Additional Investment | $50 for all accounts (with the exception of certain employer-sponsored retirement plans which may have a lower minimum). | No subsequent minimum. |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
Investor A Shares |
Institutional Shares | ||||||||
Management
Fee1 |
||||||||||
Distribution
and/or Service (12b-1) Fees |
||||||||||
Other
Expenses1,3 |
||||||||||
Administration
Fees1 |
||||||||||
Independent
Expenses3 |
||||||||||
Acquired
Fund Fees and Expenses1,2 |
||||||||||
Total
Annual Fund Operating Expenses2 |
||||||||||
Fee
Waivers and/or Expense Reimbursements1,3 |
( |
( |
||||||||
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements1,3 |
1 | As
described in the “Management of the Funds” section of the Fund’s
prospectus beginning on page 181, BFA and BlackRock Advisors, LLC (“BAL”)
have contractually agreed to reimburse the Fund for Acquired Fund Fees and
Expenses up to a maximum amount equal to the combined Management Fee and
Administration Fee of each share class through June 30, 2025. In addition,
BFA has contractually agreed to waive its management fees by the amount of
investment advisory fees the Fund pays to BFA indirectly through its
investment in money market funds managed by BFA or its affiliates, through
|
2 |
3 | Independent
Expenses consist of the Fund’s allocable portion of the fees and expenses
of the independent trustees of the Trust, counsel to such independent
trustees and the independent registered public accounting firm that
provides audit services to the Fund. BAL and BFA have contractually agreed
to reimburse, or provide offsetting credits to, the Fund for Independent
Expenses through June 30, 2034. After giving effect to such contractual
arrangements, Independent Expenses will be 0.00%. Such contractual
arrangements may not be terminated prior to July 1, 2034 without the
consent of the Board of Trustees of the
Trust. |
1 Year | 3 Years | 5 Years | 10 Years | |||||||||||||
Investor
A Shares |
$ |
$ | $ | $ | ||||||||||||
Institutional
Shares |
$ |
$ | $ | $ |
Years Until Retirement | Equity Funds (Includes REITs) |
Fixed-Income Funds | ||||||||
45 |
99 | % | 1 | % | ||||||
40 |
99 | % | 1 | % | ||||||
35 |
99 | % | 1 | % | ||||||
30 |
96 | % | 4 | % | ||||||
25 |
89 | % | 11 | % | ||||||
20 |
79 | % | 21 | % | ||||||
15 |
68 | % | 32 | % | ||||||
10 |
56 | % | 44 | % | ||||||
5 |
43 | % | 57 | % | ||||||
0 |
40 | % | 60 | % |
∎ |
Equity
Securities Risk — Stock markets are volatile. The price of
equity securities fluctuates based on changes in a company’s financial
condition and overall market and economic
conditions. |
∎ |
Investments in
Underlying Funds Risk — Because the Fund invests
substantially all of its assets in Underlying Funds, its investment
performance is related to the performance of the Underlying Funds. The
Fund’s net asset |
value
will change with changes in the value of the Underlying Funds and other
securities in which it invests. An investment in the Fund will entail more
direct and indirect costs and expenses than a direct investment in the
Underlying Funds. |
∎ |
Allocation
Risk — The Fund’s ability to achieve its investment
objective depends upon the Fund’s asset class allocation and the mix of
Underlying Funds. There is a risk that the asset class allocation or the
combination of Underlying Funds may be incorrect in view of actual market
conditions. In addition, the asset allocation or the combination of
Underlying Funds determined by BFA could result in underperformance as
compared to funds with similar investment objectives and
strategies. |
∎ |
Retirement
Income Risk — The Fund does not provide a guarantee that
sufficient capital appreciation will be achieved to provide adequate
income at and through retirement. The Fund also does not ensure that you
will have assets in your account sufficient to cover your retirement
expenses or that you will have enough saved to be able to retire in the
target year identified in the Fund’s name; this will depend on the amount
of money you have invested in the Fund, the length of time you have held
your investment, the returns of the markets over time, the amount you
spend in retirement, and your other assets and income
sources. |
∎ |
Affiliated Fund
Risk — In managing the Fund, BFA will have authority to
select and substitute underlying funds and ETFs. BFA may be subject to
potential conflicts of interest in selecting underlying funds and ETFs
because the fees paid to BFA by some underlying funds and ETFs are higher
than the fees paid by other underlying funds and ETFs. However, BFA is a
fiduciary to the Fund and is legally obligated to act in the Fund’s best
interests when selecting underlying funds and ETFs. If an underlying fund
or ETF holds interests in an affiliated fund, the Fund may be prohibited
from purchasing shares of that underlying fund or
ETF. |
∎ |
Market Risk and
Selection Risk — Market risk is the risk that one or more
markets in which the Fund invests will go down in value, including the
possibility that the markets will go down sharply and unpredictably. The
value of a security or other asset may decline due to changes in general
market conditions, economic trends or events that are not specifically
related to the issuer of the security or other asset, or factors that
affect a particular issuer or issuers, exchange, country, group of
countries, region, market, industry, group of industries, sector or asset
class. Local, regional or global events such as war, acts of terrorism,
the spread of infectious illness or other public health issues like
pandemics or epidemics, recessions, or other events could have a
significant impact on the Fund and its investments. Selection risk is the
risk that the securities selected by Fund management will underperform the
markets, the relevant indices or the securities selected by other funds
with similar investment objectives and investment strategies. This means
you may lose
money. |
∎ |
Debt Securities
Risk — Debt securities, such as bonds, involve risks, such
as credit risk, interest rate risk, extension risk, and prepayment risk,
each of which are described in further detail
below: |
∎ |
Risk of
Investing in the United States — Certain changes in the U.S.
economy, such as when the U.S. economy weakens or when its financial
markets decline, may have an adverse effect on the securities to which the
Fund has exposure. |
∎ |
Asset
Class Risk — Securities and other assets or financial
instruments in the underlying index of an Underlying Fund or in an
Underlying Fund’s portfolio may underperform in comparison to the general
financial markets, a particular financial market or other asset
classes. |
∎ |
Authorized
Participant Concentration Risk — Only an authorized
participant may engage in creation or redemption transactions directly
with an ETF, and none of those authorized participants is obligated to
engage in creation and/or redemption transactions. The Underlying Funds
that are ETFs have 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 an ETF and no other authorized participant is able to step
forward to create or redeem, the ETF shares may be more likely to trade at
a premium or discount to net asset value and possibly face trading halts
or delisting. Authorized participant concentration risk may be heightened
for ETFs that invest in securities issued by non-U.S. issuers or other
securities or instruments that have lower trading
volumes. |
∎ |
Concentration
Risk — To the extent that an underlying index of an
Underlying Fund is concentrated in the securities of companies, a
particular market, industry, group of industries, sector or asset class,
country, region or group of countries, that Underlying Fund may be
adversely affected by the performance of those securities, may be subject
to increased price volatility and may be more susceptible to adverse
economic, market, political or regulatory occurrences affecting that
market, industry, group of industries, sector or asset class, country,
region or group of countries. |
∎ |
Currency
Risk — Because the net asset value of an Underlying Fund
that is an ETF is determined in U.S. dollars, the Underlying Fund’s net
asset value could decline if the currency of a non-U.S. market in which
the Underlying Fund invests depreciates against the U.S. dollar or if
there are delays or limits on repatriation of such currency. Currency
exchange rates can be very volatile and can change quickly and
unpredictably. As a result, the net asset value of an Underlying Fund that
is an ETF may change quickly and without
warning. |
∎ |
Custody
Risk — Less developed securities markets are more likely to
experience problems with the clearing and settling of trades, as well as
the holding of securities by local banks, agents and
depositories. |
∎ |
Depositary
Receipts Risk — Depositary receipts are generally subject to
the same risks as the foreign securities that they evidence or into which
they may be converted. In addition to investment risks associated with the
underlying issuer, depositary receipts expose the Fund to additional risks
associated with the non-uniform terms that apply to depositary receipt
programs, credit exposure to the depository bank and to the sponsors and
other parties with whom the depository bank establishes the programs,
currency risk and the risk of an illiquid market for depositary receipts.
The issuers of unsponsored depositary receipts are not obligated to
disclose information that is, in the United States, considered material.
Therefore, there may be less information available regarding these issuers
and there may not be a correlation between such information and the market
value of the depositary receipts. While depositary receipts provide an
alternative to directly purchasing underlying foreign securities in their
respective markets and currencies, they continue to be subject to many of
the risks associated with investing directly in foreign securities,
including political, economic, and currency
risk. |
∎ |
Derivatives
Risk — The Fund’s use of derivatives may increase its costs,
reduce the Fund’s returns and/or increase volatility. Derivatives involve
significant risks,
including: |
∎ |
Emerging
Markets Risk — Emerging markets are riskier than more
developed markets because they tend to develop unevenly and may never
fully develop. Investments in emerging markets may be considered
speculative. Emerging markets are more likely to experience hyperinflation
and currency devaluations, which adversely affect returns to U.S.
investors. In addition, many emerging securities markets have far lower
trading volumes and less liquidity than developed
markets. |
∎ |
Foreign
Securities Risk — Foreign investments often involve special
risks not present in U.S. investments that can increase the chances that
the Fund will lose money. These risks
include: |
∎ |
The
Fund generally holds its foreign securities and cash in foreign banks and
securities depositories, which may be recently organized or new to the
foreign custody business and may be subject to only limited or no
regulatory oversight. |
∎ |
Changes
in foreign currency exchange rates can affect the value of the Fund’s
portfolio. |
∎ |
The
economies of certain foreign markets may not compare favorably with the
economy of the United States with respect to such issues as growth of
gross national product, reinvestment of capital, resources and balance of
payments position. |
∎ |
The
governments of certain countries, or the U.S. Government with respect to
certain countries, may prohibit or impose substantial restrictions through
capital controls and/or sanctions on foreign investments in the capital
markets or certain industries in those countries, which may prohibit or
restrict the ability to own or transfer currency, securities, derivatives
or other assets. |
∎ |
Many
foreign governments do not supervise and regulate stock exchanges, brokers
and the sale of securities to the same extent as does the United States
and may not have laws to protect investors that are comparable to U.S.
securities laws. |
∎ |
Settlement
and clearance procedures in certain foreign markets may result in delays
in payment for or delivery of securities not typically associated with
settlement and clearance of U.S.
investments. |
∎ |
The
Fund’s claims to recover foreign withholding taxes may not be successful,
and if the likelihood of recovery of foreign withholding taxes materially
decreases, due to, for example, a change in tax regulation or approach in
the foreign country, accruals in the Fund’s net asset value for such
refunds may be written down partially or in full, which will adversely
affect the Fund’s net asset
value. |
∎ |
The
European financial markets have recently experienced volatility and
adverse trends due to concerns about economic downturns in, or rising
government debt levels of, several European countries as well as acts of
war in the region. These events may spread to other countries in Europe
and may affect the value and liquidity of certain of the Fund’s
investments. |
∎ |
Geographic
Risk — Some of the companies in which the Fund invests are
located in parts of the world that have historically been prone to natural
disasters, such as earthquakes, tornadoes, volcanic eruptions, droughts,
floods, hurricanes or tsunamis, and are economically sensitive to
environmental events. Any such event may adversely impact the economies of
these geographic areas or business operations of companies in these
geographic areas, causing an adverse impact on the value of the
Fund. |
∎ |
Income Risk
— Income risk is the risk that the Fund’s yield will vary as
short-term securities in its portfolio mature and the proceeds are
reinvested in securities with different interest
rates. |
∎ |
Inflation-Indexed Bonds Risk —
The principal value of an investment is not protected or otherwise
guaranteed by virtue of the Fund’s investments in inflation-indexed
bonds. |
∎ |
Indexing
Investment Risk — The Fund is not actively managed, and BFA
generally does not attempt to take defensive positions under any market
conditions, including declining
markets. |
∎ |
Index-Related
Risk — There is no guarantee that an Underlying Fund’s
investment results will have a high degree of correlation to those of its
underlying index or that the Underlying Fund will achieve its investment
objective. Market disruptions or high volatility, other unusual market
circumstances and regulatory restrictions could have an adverse effect on
an Underlying Fund’s ability to adjust its exposure to the required levels
in order to track its underlying index. Errors in index data, index
computations or the construction of an underlying index in accordance with
its methodology may occur from time to time and may not be identified and
corrected by the index provider for a period of time or at all, which may
have an adverse impact on an Underlying Fund and its shareholders. Unusual
market conditions or other unforeseen circumstances (such as natural
disasters, political unrest or war) may impact the index provider or a
third-party data provider and could cause the index provider to postpone a
scheduled rebalance. This could cause an underlying index to vary from its
normal or expected
composition. |
∎ |
Issuer
Risk — Fund performance depends on the performance of
individual securities to which the Fund has exposure. Changes in the
financial condition or credit rating of an issuer of those securities may
cause the value of the securities to
decline. |
∎ |
Large-Capitalization Companies
Risk — Large-capitalization companies may be less able than
smaller capitalization companies to adapt to changing market conditions.
Large-capitalization companies may be more mature and subject to more
limited growth potential compared with smaller capitalization companies.
During different market cycles, the performance of large-capitalization
companies has trailed the overall performance of the broader securities
markets. |
∎ |
Large
Shareholder and Large-Scale Redemption Risk — Certain
shareholders, including a third-party investor, the Fund’s adviser or an
affiliate of the Fund’s adviser, or another entity, may from time to time
own or manage a substantial amount of Fund shares, or may invest in the
Fund and hold its investment for a limited period of time. There can be no
assurance that any large shareholder or large group of shareholders would
not redeem their investment. Redemptions by large shareholders or a large
group of shareholders could have a significant negative impact on the
Fund. Redemptions of a large number of Fund shares could require the Fund
to dispose of assets to meet the redemption requests, which can accelerate
the realization of taxable income and cause the Fund to make taxable
distributions to its shareholders earlier than the Fund otherwise would
have. In addition, under certain circumstances, non-redeeming shareholders
may be treated as receiving a disproportionately large taxable
distribution during or with respect to such year. In some circumstances,
the Fund may hold a relatively large proportion of its assets in cash in
anticipation of large redemptions, diluting its investment returns. These
large redemptions may also force the Fund to sell portfolio securities
when it might not otherwise do so, which may negatively impact the Fund’s
NAV and increase the Fund’s brokerage costs and/or accelerate the
realization of taxable income and/or capital gains to shareholders. In
addition, large redemptions can result in the Fund’s current expenses
being allocated over a smaller asset base, which generally results in an
increase in the Fund’s expense ratio. Because large redemptions can
adversely affect a portfolio manager’s ability to implement a fund’s
investment strategy, the Fund also reserves the right to redeem in-kind,
subject to certain conditions. |
∎ |
Leverage Risk
— Some transactions may give rise to a form of economic
leverage. These transactions may include, among others, derivatives, and
may expose the Fund to greater risk and increase its costs. The use of
leverage may cause the Fund to liquidate portfolio positions when it may
not be advantageous to do so to satisfy its obligations or to meet the
applicable requirements of the Investment Company Act, and the rules
thereunder. Increases and decreases in the value of the Fund’s portfolio
will be magnified when the Fund uses
leverage. |
∎ |
Management
Risk — As an Underlying Fund may not fully replicate its
underlying index, it is subject to the risk that the Underlying Fund’s
investment manager’s investment strategy may not produce the intended
results. |
∎ |
Money Market
Securities Risk — If market conditions improve while the
Fund has invested some or all of its assets in high quality money market
securities, this strategy could result in reducing the potential gain from
the market upswing, thus reducing the Fund’s opportunity to achieve its
investment objective. |
∎ |
Mortgage- and
Asset-Backed Securities Risks — Mortgage- and asset-backed
securities represent interests in “pools” of mortgages or other assets,
including consumer loans or receivables held in trust. Mortgage- and
asset-backed securities are subject to credit, interest rate, prepayment
and extension risks. These securities also are subject to risk of default
on the underlying mortgage or asset, particularly during periods of
economic downturn. Small movements in interest rates (both increases and
decreases) may quickly and significantly reduce the value of certain
mortgage-backed securities. |
∎ |
National Closed
Market Trading Risk — To the extent that the underlying
securities or other instruments held by an Underlying Fund that is an ETF
trade on foreign exchanges or in foreign markets that may be closed when
the securities exchange on which the Underlying Fund’s shares trade is
open, there are likely to be deviations between the current price of such
an underlying security and the last quoted price for the underlying
security (i.e., an Underlying Fund’s quote from the closed foreign
market). The impact of a closed foreign market on an Underlying Fund is
likely to be greater where a large portion of the Underlying Fund’s
underlying securities or other instruments trade on that closed foreign
market or when the foreign market is closed for unscheduled reasons. These
deviations could result in premiums or discounts to one or more of the
Underlying Funds’ net asset values that may be greater than those
experienced by other ETFs. |
∎ |
Passive
Investment Risk — Because BFA does not select individual
companies in the underlying indexes for certain Underlying Funds, those
Underlying Funds may hold securities of companies that present risks that
an investment adviser researching individual securities might seek to
avoid. |
∎ |
Preferred
Securities Risk — Preferred securities may pay fixed or
adjustable rates of return. Preferred securities are subject to
issuer-specific and market risks applicable generally to equity
securities. In addition, a company’s preferred securities generally pay
dividends only after the company makes required payments to holders of its
bonds and other debt. For this reason, the value of preferred securities
will usually react more strongly than bonds and other debt to actual or
perceived changes in the company’s financial condition or prospects.
Preferred securities of smaller companies may be more vulnerable to
adverse developments than preferred securities of larger
companies. |
∎ |
Privatization
Risk — Some countries in which the Fund invests have
privatized, or have begun the process of privatizing, certain entities and
industries. Privatized entities may lose money or be
re-nationalized. |
∎ |
Real
Estate-Related Securities Risk — The main risk of real
estate-related securities is that the value of the underlying real estate
may go down. Many factors may affect real estate values. These factors
include both the general and local economies, vacancy rates, changes in
rent schedules, tenant bankruptcies, the ability to re-lease space under
expiring leases on attractive terms, the amount of new construction in a
particular area, the laws and regulations (including zoning, environmental
and tax laws) affecting real estate and the costs of owning, maintaining
and improving real estate. The availability of mortgage financing and
changes in interest rates may also affect real estate values. If the
Fund’s real estate-related investments are concentrated in one geographic
area or in one property type, the Fund will be particularly subject to the
risks associated with that area or property type. Many issuers of real
estate-related securities are highly leveraged, which increases the risk
to holders of such securities. The value of the securities the Fund buys
will not necessarily track the value of the underlying investments of the
issuers of such securities. In addition, certain issuers of real
estate-related securities may have developed or commenced development on
properties and may develop additional properties in the future. Real
estate development involves significant risks in addition to those
involved in the ownership and operation of established properties. Real
estate securities may have limited diversification and are, therefore,
subject to risks inherent in operating and financing a limited number of
projects. Real estate securities are also subject to heavy cash flow
dependency and defaults by borrowers or
tenants. |
∎ |
REIT Investment
Risk — Investments in REITs involve unique risks. REITs may
have limited financial resources, may trade less frequently and in limited
volume, may engage in dilutive offerings of securities and may be more
volatile than other securities. REIT issuers may also fail to maintain
their exemptions from investment company registration or fail to qualify
for the “dividends paid deduction” under the Internal Revenue Code, which
allows REITs to reduce their corporate taxable income for dividends paid
to their shareholders. |
∎ |
Representative
Sampling Risk — Representative sampling is a method of
indexing that involves investing in a representative sample of securities
that collectively have a similar investment profile to the index and
resemble the index in terms of risk factors and other key characteristics.
A passively managed
ETF may or may not hold every security in the index. When an ETF
deviates from a full replication indexing strategy to utilize a
representative sampling strategy, the ETF is subject to an increased risk
of tracking error, in that the securities selected in the aggregate for
the ETF may not have an investment profile similar to those of its
index. |
∎ |
Repurchase
Agreements Risk — If the other party to a repurchase
agreement defaults on its obligation under the agreement, the Fund may
suffer delays and incur costs or lose money in exercising its rights under
the agreement. If the seller fails to repurchase the security and the
market value of the security declines, the Fund may lose
money. |
∎ |
Shares of an
ETF May Trade at Prices Other Than Net Asset Value — Shares
of an ETF trade on exchanges at prices at, above or below their most
recent net asset value. The per share net asset value of an ETF is
calculated at the end of each business day and fluctuates with changes in
the market value of the ETF’s holdings since the most recent calculation.
The trading prices of an ETF’s shares fluctuate continuously throughout
trading hours based on market supply and demand rather than net asset
value. The trading prices of an ETF’s shares may deviate significantly
from net asset value during periods of market volatility. Any of these
factors may lead to an ETF’s shares trading at a premium or discount to
net asset value. However, because shares can be created and redeemed in
creation units, which are aggregated blocks of shares that authorized
participants who have entered into agreements with the ETF’s distributor
can purchase or redeem directly from the ETF, at net asset value (unlike
shares of many closed-end funds, which frequently trade at appreciable
discounts from, and sometimes at premiums to, their net asset values),
large discounts or premiums to the net asset value of an ETF are not
likely to be sustained over the long-term. While the creation/redemption
feature is designed to make it likely that an ETF’s shares normally trade
on exchanges at prices close to the ETF’s next calculated net asset value,
exchange prices are not expected to correlate exactly with an ETF’s net
asset value due to timing reasons as well as market supply and demand
factors. In addition, disruptions to creations and redemptions or the
existence of extreme market volatility may result in trading prices that
differ significantly from net asset value. If a shareholder purchases at a
time when the market price is at a premium to the net asset value or sells
at a time when the market price is at a discount to the net asset value,
the shareholder may sustain losses. The use of cash creations and
redemptions may also cause the ETFs’ shares to trade in the market at
greater bid-ask spreads or greater premiums or discounts to the ETFs’
NAV. |
∎ |
Small and
Mid-Capitalization Company Risk — Companies with small or
mid-size market capitalizations will normally have more limited product
lines, markets and financial resources and will be dependent upon a more
limited management group than larger capitalized companies. In addition,
it is more difficult to get information on smaller companies, which tend
to be less well known, have shorter operating histories, do not have
significant ownership by large investors and are followed by relatively
few securities analysts. |
∎ |
Structured
Securities Risk — Because structured securities of the type
in which the Fund may invest typically involve no credit enhancement,
their credit risk generally will be equivalent to that of the underlying
instruments, index or reference obligation and will also be subject to
counterparty risk. The Fund may have the right to receive payments only
from the structured security, and generally does not have direct rights
against the issuer or the entity that sold the assets to be securitized.
In addition to the general risks associated with debt securities
discussed |
herein,
structured securities carry additional risks, including, but not limited
to: the possibility that distributions from collateral securities will not
be adequate to make interest or other payments; the quality of the
collateral may decline in value or default; and the possibility that the
structured securities are subordinate to other classes. The Fund is
permitted to invest in a class of structured securities that is either
subordinated or unsubordinated to the right of payment of another class.
Subordinated structured securities typically have higher yields and
present greater risks than unsubordinated structured securities.
Structured securities are typically sold in private placement
transactions, and there currently is no active trading market for
structured securities. Structured securities are based upon the movement
of one or more factors, including currency exchange rates, interest rates,
reference bonds and stock indices, and changes in interest rates and
impact of these factors may cause significant price fluctuations.
Additionally, changes in the reference instrument or security may cause
the interest rate on the structured security to be reduced to zero.
Certain issuers of such structured securities may be deemed to be
“investment companies” as defined in the Investment Company Act. As a
result, the Fund’s investment in such securities may be limited by certain
investment restrictions contained in the Investment Company
Act. |
∎ |
Tax
Risk — Although the Fund intends to invest primarily in
securities the interest on which, in the opinion of counsel to the issuer,
is exempt from federal income tax, the IRS has generally not ruled on the
taxability of the securities. An assertion by the IRS that a portfolio
security is not exempt from Federal income tax (contrary to indications
from the issuer) could affect the Fund’s and shareholder’s income tax
liability for the current or past years and could create liability for
information reporting penalties. In addition, an IRS assertion of
taxability may impair the liquidity and the fair market value of the
securities. |
∎ |
Tracking Error
Risk — Tracking error is the divergence of an Underlying
Fund’s performance from that of its underlying index. Tracking error may
occur because of differences between the securities and other instruments
held in an Underlying Fund’s portfolio and those included in its
underlying index, pricing differences (including, as applicable,
differences between a security’s price at the local market close and an
Underlying Fund’s valuation of a security at the time of calculation of an
Underlying Fund’s NAV), differences in transaction costs, an Underlying
Fund’s holding of uninvested cash, differences in timing of the accrual of
or the valuation of dividends or other distributions, interest, the
requirements to maintain pass-through tax treatment, portfolio
transactions carried out to minimize the distribution of capital gains to
shareholders, changes to an underlying index and the cost to an Underlying
Fund of complying with various new or existing regulatory requirements.
These risks may be heightened during times of increased market volatility
or other unusual market conditions. In addition, tracking error may result
because an Underlying Fund incurs fees and expenses, while its underlying
index does not. |
∎ |
Treasury
Obligations Risk — Direct obligations of the U.S. Treasury
have historically involved little risk of loss of principal if held to
maturity. However, due to fluctuations in interest rates, the market value
of such securities may vary during the period shareholders own shares of
the Fund. In addition, notwithstanding that U.S. Treasury obligations are
backed by the full faith and credit of the United States, circumstances
could arise that could prevent the timely payment of interest or
principal, such as reaching the legislative “debt ceiling.” Such
non-payment could result in losses to the Fund and substantial negative
consequences for the U.S. economy and the global financial
system. |
∎ |
U.S. Government
Issuer Risk — Treasury obligations may differ in their
interest rates, maturities, times of issuance and other characteristics.
Obligations of U.S. Government agencies and authorities are supported by
varying degrees of credit but generally are not backed by the full faith
and credit of the U.S. Government. No assurance can be given that the U.S.
Government will provide financial support to its agencies and authorities
if it is not obligated by law to do
so. |
∎ |
Valuation Risk
— The price an Underlying Fund could receive upon the sale
of a security or other asset may differ from the Underlying Fund’s
valuation of the security or other asset and from the value used by its
underlying index, particularly for securities or other assets that trade
in low volume or volatile markets or that are valued using a fair value
methodology as a result of trade suspensions or for other reasons. In
addition, the value of the securities or other assets in an Underlying
Fund’s portfolio may change on days or during time periods when
shareholders will not be able to purchase or sell the Underlying Fund’s
shares. Authorized Participants who purchase or redeem Underlying Fund
shares on days when an Underlying Fund is holding fair-valued securities
may receive fewer or more shares, or lower or higher redemption proceeds,
than they would have received had the securities not been fair valued or
been valued using a different methodology. The ability to value
investments may be impacted by technological issues or errors by pricing
services or other third-party service
providers. |
∎ |
Variable and
Floating Rate Instrument Risk — Variable and floating rate
securities provide for periodic adjustment in the interest rate paid on
the securities. These securities may be subject to greater illiquidity
risk than other fixed income securities, meaning the absence of an active
market for these securities could make it difficult for the Fund to
dispose of them at any given
time. |
|
1 Year | 5 Years | 10 Years | |||||||||
LifePath
Index 2040 Fund — Investor A Shares |
||||||||||||
Return
Before Taxes |
% | % | % | |||||||||
Return
After Taxes on Distributions |
% | % | % | |||||||||
Return
After Taxes on Distributions and Sale of Fund Shares |
% | % | % | |||||||||
LifePath
Index 2040 Fund — Institutional Shares |
||||||||||||
Return
Before Taxes |
% | % | % | |||||||||
LifePath
Index 2040 Fund Custom Benchmark (Reflects no deduction for fees, expenses or taxes) |
% | % | % | |||||||||
Russell
1000®
Index (Reflects no deduction for fees, expenses or taxes) |
% | % | % |
Name |
Portfolio Manager of the Fund Since | Title | ||
Chris
Chung, CFA |
2020 | Managing Director of BlackRock, Inc. | ||
Lisa
O’Connor, CFA |
2020 | Managing Director of BlackRock, Inc. | ||
Greg
Savage, CFA |
2018 | Managing Director of BlackRock, Inc. | ||
Paul
Whitehead |
2023 | Managing Director of BlackRock, Inc. |
Investor A Shares | Institutional Shares | |||
Minimum Initial Investment |
$1,000
for all accounts except:
• $50,
if establishing an Automatic Investment Plan.
• There
is no investment minimum for employer-sponsored retirement plans
(not including SEP IRAs, SIMPLE IRAs or SARSEPs).
• There
is no investment minimum for certain fee-based programs. |
There
is no minimum initial investment for:
• Employer-sponsored
retirement plans (not including SEP IRAs, SIMPLE IRAs or SARSEPs), state
sponsored 529 college savings plans, collective trust funds, investment
companies or other pooled investment vehicles, unaffiliated thrifts and
unaffiliated banks and trust companies, each of which may purchase shares
of the Fund through a Financial Intermediary that has entered into an
agreement with the Fund’s distributor to purchase such shares.
• Clients
of Financial Intermediaries that: (i) charge such clients a fee for
advisory, investment consulting, or similar services or (ii) have entered
into an agreement with the Fund’s distributor to offer Institutional
Shares through a no-load program or investment platform.
• Clients
investing through a self-directed IRA brokerage account program sponsored
by a retirement plan record-keeper, provided that such program offers only
mutual fund options and that the program maintains an account with the
Fund on an omnibus basis.
$2
million for individuals and “Institutional Investors,” which include, but
are not limited to, endowments, foundations, family offices, local, city,
and state governmental institutions, corporations and insurance company
separate accounts who may purchase shares of the Fund through a Financial
Intermediary that has entered into an agreement with the Fund’s
distributor to purchase such shares.
$1,000
for:
• Clients
investing through Financial Intermediaries that offer such shares on a
platform that charges a transaction based sales commission outside of the
Fund. | ||
• Tax-qualified
accounts for insurance agents that are registered representatives of an
insurance company’s broker-dealer that has entered into an agreement with
the Fund’s distributor to offer Institutional Shares, and the family
members of such persons. | ||||
Minimum Additional Investment | $50 for all accounts (with the exception of certain employer-sponsored retirement plans which may have a lower minimum). | No subsequent minimum. |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
Investor A Shares |
Institutional Shares | ||||||||
Management
Fee1 |
||||||||||
Distribution
and/or Service (12b-1) Fees |
||||||||||
Other
Expenses1,3 |
||||||||||
Administration
Fees1 |
||||||||||
Independent
Expenses3 |
||||||||||
Acquired
Fund Fees and Expenses1,2 |
||||||||||
Total
Annual Fund Operating Expenses2 |
||||||||||
Fee
Waivers and/or Expense Reimbursements1,3 |
( |
( |
||||||||
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements1,3 |
1 | As
described in the “Management of the Funds” section of the Fund’s
prospectus beginning on page 181, BFA and BlackRock Advisors, LLC (“BAL”)
have contractually agreed to reimburse the Fund for Acquired Fund Fees and
Expenses up to a maximum amount equal to the combined Management Fee and
Administration Fee of each share class through June 30, 2025. In addition,
BFA has contractually agreed to waive its management fees by the amount of
investment advisory fees the Fund pays to BFA indirectly through its
investment in money market funds managed by BFA or its affiliates, through
|
2 |
3 | Independent
Expenses consist of the Fund’s allocable portion of the fees and expenses
of the independent trustees of the Trust, counsel to such independent
trustees and the independent registered public accounting firm that
provides audit services to the Fund. BAL and BFA have contractually agreed
to reimburse, or provide offsetting credits to, the Fund for Independent
Expenses through June 30, 2034. After giving effect to such contractual
arrangements, Independent Expenses will be 0.00%. Such contractual
arrangements may not be terminated prior to July 1, 2034 without the
consent of the Board of Trustees of the
Trust. |
1 Year | 3 Years | 5 Years | 10 Years | |||||||||||||
Investor
A Shares |
$ |
$ | $ | $ | ||||||||||||
Institutional
Shares |
$ |
$ | $ | $ |
Years Until Retirement | Equity Funds (Includes REITs) |
Fixed‑Income Funds | ||||||||
45 |
99 | % | 1 | % | ||||||
40 |
99 | % | 1 | % | ||||||
35 |
99 | % | 1 | % | ||||||
30 |
96 | % | 4 | % | ||||||
25 |
89 | % | 11 | % | ||||||
20 |
79 | % | 21 | % | ||||||
15 |
68 | % | 32 | % | ||||||
10 |
56 | % | 44 | % | ||||||
5 |
43 | % | 57 | % | ||||||
0 |
40 | % | 60 | % |
∎ |
Equity
Securities Risk — Stock markets are volatile. The price of
equity securities fluctuates based on changes in a company’s financial
condition and overall market and economic
conditions. |
∎ |
Investments in
Underlying Funds Risk — Because the Fund invests
substantially all of its assets in Underlying Funds, its investment
performance is related to the performance of the Underlying Funds. The
Fund’s net asset |
value
will change with changes in the value of the Underlying Funds and other
securities in which it invests. An investment in the Fund will entail more
direct and indirect costs and expenses than a direct investment in the
Underlying Funds. |
∎ |
Allocation
Risk — The Fund’s ability to achieve its investment
objective depends upon the Fund’s asset class allocation and the mix of
Underlying Funds. There is a risk that the asset class allocation or the
combination of Underlying Funds may be incorrect in view of actual market
conditions. In addition, the asset allocation or the combination of
Underlying Funds determined by BFA could result in underperformance as
compared to funds with similar investment objectives and
strategies. |
∎ |
Retirement
Income Risk — The Fund does not provide a guarantee that
sufficient capital appreciation will be achieved to provide adequate
income at and through retirement. The Fund also does not ensure that you
will have assets in your account sufficient to cover your retirement
expenses or that you will have enough saved to be able to retire in the
target year identified in the Fund’s name; this will depend on the amount
of money you have invested in the Fund, the length of time you have held
your investment, the returns of the markets over time, the amount you
spend in retirement, and your other assets and income
sources. |
∎ |
Affiliated Fund
Risk — In managing the Fund, BFA will have authority to
select and substitute underlying funds and ETFs. BFA may be subject to
potential conflicts of interest in selecting underlying funds and ETFs
because the fees paid to BFA by some underlying funds and ETFs are higher
than the fees paid by other underlying funds and ETFs. However, BFA is a
fiduciary to the Fund and is legally obligated to act in the Fund’s best
interests when selecting underlying funds and ETFs. If an underlying fund
or ETF holds interests in an affiliated fund, the Fund may be prohibited
from purchasing shares of that underlying fund or
ETF. |
∎ |
Market Risk and
Selection Risk — Market risk is the risk that one or more
markets in which the Fund invests will go down in value, including the
possibility that the markets will go down sharply and unpredictably. The
value of a security or other asset may decline due to changes in general
market conditions, economic trends or events that are not specifically
related to the issuer of the security or other asset, or factors that
affect a particular issuer or issuers, exchange, country, group of
countries, region, market, industry, group of industries, sector or asset
class. Local, regional or global events such as war, acts of terrorism,
the spread of infectious illness or other public health issues like
pandemics or epidemics, recessions, or other events could have a
significant impact on the Fund and its investments. Selection risk is the
risk that the securities selected by Fund management will underperform the
markets, the relevant indices or the securities selected by other funds
with similar investment objectives and investment strategies. This means
you may lose
money. |
∎ |
Risk of
Investing in the United States — Certain changes in the U.S.
economy, such as when the U.S. economy weakens or when its financial
markets decline, may have an adverse effect on the securities to which the
Fund has exposure. |
∎ |
Asset
Class Risk — Securities and other assets or financial
instruments in the underlying index of an Underlying Fund or in an
Underlying Fund’s portfolio may underperform in comparison to the general
financial markets, a particular financial market or other asset
classes. |
∎ |
Authorized
Participant Concentration Risk — Only an authorized
participant may engage in creation or redemption transactions directly
with an ETF, and none of those authorized participants is obligated to
engage in creation and/or redemption transactions. The Underlying Funds
that are ETFs have 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 an ETF and no other authorized participant is able to step
forward to create or redeem, the ETF shares may be more likely to trade at
a premium or discount to net asset value and possibly face trading halts
or delisting. Authorized participant concentration risk may be heightened
for ETFs that invest in securities issued by non‑U.S. issuers or other
securities or instruments that have lower trading
volumes. |
∎ |
Concentration
Risk — To the extent that an underlying index of an
Underlying Fund is concentrated in the securities of companies, a
particular market, industry, group of industries, sector or asset class,
country, region or group of countries, that Underlying Fund may be
adversely affected by the performance of those securities, may be subject
to increased price volatility and may be more susceptible to adverse
economic, market, political or regulatory occurrences affecting that
market, industry, group of industries, sector or asset class, country,
region or group of countries. |
∎ |
Currency
Risk — Because the net asset value of an Underlying Fund
that is an ETF is determined in U.S. dollars, the Underlying Fund’s net
asset value could decline if the currency of a non‑U.S. market in which
the Underlying Fund invests depreciates against the U.S. dollar or if
there are delays or limits on repatriation of such currency. Currency
exchange rates can be very volatile and can change quickly and
unpredictably. As a result, the net asset value of an Underlying Fund that
is an ETF may change quickly and without
warning. |
∎ |
Custody
Risk — Less developed securities markets are more likely to
experience problems with the clearing and settling of trades, as well as
the holding of securities by local banks, agents and
depositories. |
∎ |
Depositary
Receipts Risk — Depositary receipts are generally subject to
the same risks as the foreign securities that they evidence or into which
they may be converted. In addition to investment risks associated with the
underlying issuer, depositary receipts expose the Fund to additional risks
associated with the non‑uniform terms that apply to depositary receipt
programs, credit exposure to the depository bank and to the sponsors and
other parties with whom the depository bank establishes the programs,
currency risk and the risk of an illiquid market for depositary receipts.
The issuers of unsponsored depositary receipts are not obligated to
disclose information that is, in the United States, considered material.
Therefore, there may be less information available regarding these issuers
and there may not be a correlation between such information and the market
value of the depositary receipts. While depositary receipts provide an
alternative to directly purchasing underlying foreign securities in their
respective markets and currencies, they continue to be subject to many of
the risks associated with investing directly in foreign securities,
including political, economic, and currency
risk. |
∎ |
Derivatives
Risk — The Fund’s use of derivatives may increase its costs,
reduce the Fund’s returns and/or increase volatility. Derivatives involve
significant risks,
including: |
∎ |
Emerging
Markets Risk — Emerging markets are riskier than more
developed markets because they tend to develop unevenly and may never
fully develop. Investments in emerging markets may be considered
speculative. Emerging markets are more likely to experience hyperinflation
and currency devaluations, which adversely affect returns to U.S.
investors. In addition, many emerging securities markets have far lower
trading volumes and less liquidity than developed
markets. |
∎ |
Foreign
Securities Risk — Foreign investments often involve special
risks not present in U.S. investments that can increase the chances that
the Fund will lose money. These risks
include: |
∎ |
The
Fund generally holds its foreign securities and cash in foreign banks and
securities depositories, which may be recently organized or new to the
foreign custody business and may be subject to only limited or no
regulatory
oversight. |
∎ |
Changes
in foreign currency exchange rates can affect the value of the Fund’s
portfolio. |
∎ |
The
economies of certain foreign markets may not compare favorably with the
economy of the United States with respect to such issues as growth of
gross national product, reinvestment of capital, resources and balance of
payments
position. |
∎ |
The
governments of certain countries, or the U.S. Government with respect to
certain countries, may prohibit or impose substantial restrictions through
capital controls and/or sanctions on foreign investments in the capital
markets or certain industries in those countries, which may prohibit or
restrict the ability to own or transfer currency, securities, derivatives
or other
assets. |
∎ |
Many
foreign governments do not supervise and regulate stock exchanges, brokers
and the sale of securities to the same extent as does the United States
and may not have laws to protect investors that are comparable to U.S.
securities
laws. |
∎ |
Settlement
and clearance procedures in certain foreign markets may result in delays
in payment for or delivery of securities not typically associated with
settlement and clearance of U.S.
investments. |
∎ |
The
Fund’s claims to recover foreign withholding taxes may not be successful,
and if the likelihood of recovery of foreign withholding taxes materially
decreases, due to, for example, a change in tax regulation or approach in
the foreign country, accruals in the Fund’s net asset value for such
refunds may be written down partially or in full, which will adversely
affect the Fund’s net asset
value. |
∎ |
The
European financial markets have recently experienced volatility and
adverse trends due to concerns about economic downturns in, or rising
government debt levels of, several European countries as well as acts of
war in the region. These events may spread to other countries in Europe
and may affect the value and liquidity of certain of the Fund’s
investments. |
∎ |
Geographic
Risk — Some of the companies in which the Fund invests are
located in parts of the world that have historically been prone to natural
disasters, such as earthquakes, tornadoes, volcanic eruptions, droughts,
floods, hurricanes or tsunamis, and are economically sensitive to
environmental events. Any such event may adversely impact the economies of
these geographic areas or business operations of companies in these
geographic areas, causing an adverse impact on the value of the
Fund. |
∎ |
Income Risk
— Income risk is the risk that the Fund’s yield will vary as
short-term securities in its portfolio mature and the proceeds are
reinvested in securities with different interest
rates. |
∎ |
Inflation-Indexed Bonds Risk —
The principal value of an investment is not protected or otherwise
guaranteed by virtue of the Fund’s investments in inflation-indexed
bonds. |
∎ |
Indexing
Investment Risk — The Fund is not actively managed, and BFA
generally does not attempt to take defensive positions under any market
conditions, including declining
markets. |
∎ |
Index-Related
Risk — There is no guarantee that an Underlying Fund’s
investment results will have a high degree of correlation to those of its
underlying index or that the Underlying Fund will achieve its investment
objective. Market disruptions or high volatility, other unusual market
circumstances and regulatory restrictions could have an adverse effect on
an Underlying Fund’s ability to adjust its exposure to the required levels
in order to track its underlying index. Errors in index data, index
computations or the construction of an underlying index in accordance with
its methodology may occur from time to time and may not be identified and
corrected by the index provider for a period of time or at all, which may
have an adverse impact on an Underlying Fund and its shareholders. Unusual
market conditions or other unforeseen circumstances (such as natural
disasters, political unrest or war) may impact the index provider or a
third-party data provider and could cause the index provider to postpone a
scheduled rebalance. This could cause an underlying index to vary from its
normal or expected
composition. |
∎ |
Issuer
Risk — Fund performance depends on the performance of
individual securities to which the Fund has exposure. Changes in the
financial condition or credit rating of an issuer of those securities may
cause the value of the securities to
decline. |
∎ |
Large-Capitalization Companies
Risk — Large-capitalization companies may be less able than
smaller capitalization companies to adapt to changing market conditions.
Large-capitalization companies may be more mature and subject to more
limited growth potential compared with smaller capitalization companies.
During different market cycles, the performance of large-capitalization
companies has trailed the overall performance of the broader securities
markets. |
∎ |
Large
Shareholder and Large-Scale Redemption Risk — Certain
shareholders, including a third-party investor, the Fund’s adviser or an
affiliate of the Fund’s adviser, or another entity, may from time to time
own or manage a substantial amount of Fund shares, or may invest in the
Fund and hold its investment for a limited period of time. There can be no
assurance that any large shareholder or large group of shareholders would
not redeem their investment. Redemptions by large shareholders or a large
group of shareholders could have a significant negative impact on the
Fund. Redemptions of a large number of Fund shares could require the Fund
to dispose of assets to meet the redemption requests, which can accelerate
the realization of taxable income and cause the Fund to make taxable
distributions to its shareholders earlier than the Fund otherwise would
have. In addition, under certain circumstances, non‑redeeming shareholders
may be treated as receiving a disproportionately large taxable
distribution during or with respect to such year. In some circumstances,
the Fund may hold a relatively large proportion of its assets in cash in
anticipation of large redemptions, diluting its investment returns. These
large redemptions may also force the Fund to sell portfolio securities
when it might not otherwise do so, which may negatively impact the Fund’s
NAV and increase the Fund’s brokerage costs and/or accelerate the
realization of taxable income and/or capital gains to shareholders. In
addition, large redemptions can result in the Fund’s current expenses
being allocated over a smaller asset base, which generally results in an
increase in the Fund’s expense ratio. Because large redemptions can
adversely affect a portfolio manager’s ability to implement a fund’s
investment strategy, the Fund also reserves the right to redeem in‑kind,
subject to certain conditions. |
∎ |
Leverage Risk
— Some transactions may give rise to a form of economic
leverage. These transactions may include, among others, derivatives, and
may expose the Fund to greater risk and increase its costs. The use of
leverage may cause the Fund to liquidate portfolio positions when it may
not be advantageous to do so to satisfy its obligations or to meet the
applicable requirements of the Investment Company Act, and the rules
thereunder. Increases and decreases in the value of the Fund’s portfolio
will be magnified when the Fund uses
leverage. |
∎ |
Management
Risk — As an Underlying Fund may not fully replicate its
underlying index, it is subject to the risk that the Underlying Fund’s
investment manager’s investment strategy may not produce the intended
results. |
∎ |
Money Market
Securities Risk — If market conditions improve while the
Fund has invested some or all of its assets in high quality money market
securities, this strategy could result in reducing the potential gain from
the market upswing, thus reducing the Fund’s opportunity to achieve its
investment objective. |
∎ |
Mortgage- and
Asset-Backed Securities Risks — Mortgage- and asset-backed
securities represent interests in “pools” of mortgages or other assets,
including consumer loans or receivables held in trust. Mortgage- and
asset-backed securities are subject to credit, interest rate, prepayment
and extension risks. These securities also are subject to risk of default
on the underlying mortgage or asset, particularly during periods of
economic downturn. Small movements in interest rates (both increases and
decreases) may quickly and significantly reduce the value of certain
mortgage-backed securities. |
∎ |
National Closed
Market Trading Risk — To the extent that the underlying
securities or other instruments held by an Underlying Fund that is an ETF
trade on foreign exchanges or in foreign markets that may be closed when
the securities exchange on which the Underlying Fund’s shares trade is
open, there are likely to be deviations between the current price of such
an underlying security and the last quoted price for the underlying
security (i.e., an Underlying Fund’s quote from the closed foreign
market). The impact of a closed foreign market on an Underlying Fund is
likely to be greater where a large portion of the Underlying Fund’s
underlying securities or other instruments trade on that closed foreign
market or when the foreign market is closed for unscheduled reasons. These
deviations could result in premiums or discounts to one or more of the
Underlying Funds’ net asset values that may be greater than those
experienced by other ETFs. |
∎ |
Passive
Investment Risk — Because BFA does not select individual
companies in the underlying indexes for certain Underlying Funds, those
Underlying Funds may hold securities of companies that present risks that
an investment adviser researching individual securities might seek to
avoid. |
∎ |
Preferred
Securities Risk — Preferred securities may pay fixed or
adjustable rates of return. Preferred securities are subject to
issuer-specific and market risks applicable generally to equity
securities. In addition, a company’s preferred securities generally pay
dividends only after the company makes required payments to holders of its
bonds and other debt. For this reason, the value of preferred securities
will usually react more strongly than bonds and other debt to actual or
perceived changes in the company’s financial condition or prospects.
Preferred securities of smaller companies may be more vulnerable to
adverse developments than preferred securities of larger
companies. |
∎ |
Privatization
Risk — Some countries in which the Fund invests have
privatized, or have begun the process of privatizing, certain entities and
industries. Privatized entities may lose money or be
re‑nationalized. |
∎ |
Real
Estate-Related Securities Risk — The main risk of real
estate-related securities is that the value of the underlying real estate
may go down. Many factors may affect real estate values. These factors
include both the general and local economies, vacancy rates, changes in
rent schedules, tenant bankruptcies, the ability to re‑lease space under
expiring leases on attractive terms, the amount of new construction in a
particular area, the laws and regulations (including zoning, environmental
and tax laws) affecting real estate and the costs of owning, maintaining
and improving real estate. The availability of mortgage financing and
changes in interest rates may also affect real estate values. If the
Fund’s real estate-related investments are concentrated in one geographic
area or in one property type, the Fund will be particularly subject to the
risks associated with that area or property type. Many issuers of real
estate-related securities are highly leveraged, which increases the risk
to holders of such securities. The value of the securities the Fund buys
will not necessarily track the value of the underlying investments of the
issuers of such securities. In addition, certain issuers of real
estate-related securities may have developed or commenced development on
properties and may develop additional properties in the future. Real
estate development involves significant risks in addition to those
involved in the ownership and operation of established properties. Real
estate securities may have limited diversification and are, therefore,
subject to risks inherent in operating and financing a limited number of
projects. Real estate securities are also subject to heavy cash flow
dependency and defaults by borrowers or
tenants. |
∎ |
REIT Investment
Risk — Investments in REITs involve unique risks. REITs may
have limited financial resources, may trade less frequently and in limited
volume, may engage in dilutive offerings of securities and may be more
volatile than other securities. REIT issuers may also fail to maintain
their exemptions from investment company registration or fail to qualify
for the “dividends paid deduction” under the Internal Revenue Code, which
allows REITs to reduce their corporate taxable income for dividends paid
to their shareholders. |
∎ |
Representative
Sampling Risk — Representative sampling is a method of
indexing that involves investing in a representative sample of securities
that collectively have a similar investment profile to the index and
resemble the index in terms of risk factors and other key characteristics.
A passively managed
ETF may or may not hold every security in the index. When an ETF
deviates from a full replication indexing strategy to utilize a
representative sampling strategy, the ETF is subject to an increased risk
of tracking error, in that the securities selected in the aggregate for
the ETF may not have an investment profile similar to those of its
index. |
∎ |
Repurchase
Agreements Risk — If the other party to a repurchase
agreement defaults on its obligation under the agreement, the Fund may
suffer delays and incur costs or lose money in exercising its rights under
the agreement. If the seller fails to repurchase the security and the
market value of the security declines, the Fund may lose
money. |
∎ |
Shares of an
ETF May Trade at Prices Other Than Net Asset Value — Shares
of an ETF trade on exchanges at prices at, above or below their most
recent net asset value. The per share net asset value of an ETF is
calculated at the end of each business day and fluctuates with changes in
the market value of the ETF’s holdings since the most recent calculation.
The trading prices of an ETF’s shares fluctuate continuously throughout
trading hours based on market supply and demand rather than net asset
value. The trading prices of an ETF’s shares may deviate significantly
from net asset value during periods of market volatility. Any of these
factors may lead to an ETF’s shares trading at a premium or discount to
net asset value. However, because shares can be created
and |
redeemed
in creation units, which are aggregated blocks of shares that authorized
participants who have entered into agreements with the ETF’s distributor
can purchase or redeem directly from the ETF, at net asset value (unlike
shares of many closed‑end funds, which frequently trade at appreciable
discounts from, and sometimes at premiums to, their net asset values),
large discounts or premiums to the net asset value of an ETF are not
likely to be sustained over the long-term. While the creation/redemption
feature is designed to make it likely that an ETF’s shares normally trade
on exchanges at prices close to the ETF’s next calculated net asset value,
exchange prices are not expected to correlate exactly with an ETF’s net
asset value due to timing reasons as well as market supply and demand
factors. In addition, disruptions to creations and redemptions or the
existence of extreme market volatility may result in trading prices that
differ significantly from net asset value. If a shareholder purchases at a
time when the market price is at a premium to the net asset value or sells
at a time when the market price is at a discount to the net asset value,
the shareholder may sustain losses. The use of cash creations and
redemptions may also cause the ETFs’ shares to trade in the market at
greater bid‑ask spreads or greater premiums or discounts to the ETFs’
NAV. |
∎ |
Small and
Mid-Capitalization Company Risk — Companies with small or
mid‑size market capitalizations will normally have more limited product
lines, markets and financial resources and will be dependent upon a more
limited management group than larger capitalized companies. In addition,
it is more difficult to get information on smaller companies, which tend
to be less well known, have shorter operating histories, do not have
significant ownership by large investors and are followed by relatively
few securities analysts. |
∎ |
Structured
Securities Risk — Because structured securities of the type
in which the Fund may invest typically involve no credit enhancement,
their credit risk generally will be equivalent to that of the underlying
instruments, index or reference obligation and will also be subject to
counterparty risk. The Fund may have the right to receive payments only
from the structured security, and generally does not have direct rights
against the issuer or the entity that sold the assets to be securitized.
In addition to the general risks associated with debt securities discussed
herein, structured securities carry additional risks, including, but not
limited to: the possibility that distributions from collateral securities
will not be adequate to make interest or other payments; the quality of
the collateral may decline in value or default; and the possibility that
the structured securities are subordinate to other classes. The Fund is
permitted to invest in a class of structured securities that is either
subordinated or unsubordinated to the right of payment of another class.
Subordinated structured securities typically have higher yields and
present greater risks than unsubordinated structured securities.
Structured securities are typically sold in private placement
transactions, and there currently is no active trading market for
structured securities. Structured securities are based upon the movement
of one or more factors, including currency exchange rates, interest rates,
reference bonds and stock indices, and changes in interest rates and
impact of these factors may cause significant price fluctuations.
Additionally, changes in the reference instrument or security may cause
the interest rate on the structured security to be reduced to zero.
Certain issuers of such structured securities may be deemed to be
“investment companies” as defined in the Investment Company Act. As a
result, the Fund’s investment in such securities may be limited by certain
investment restrictions contained in the Investment Company
Act. |
∎ |
Tax
Risk — Although the Fund intends to invest primarily in
securities the interest on which, in the opinion of counsel to the issuer,
is exempt from federal income tax, the IRS has generally not ruled on the
taxability of the securities. An assertion by the IRS that a portfolio
security is not exempt from Federal income tax (contrary to indications
from the issuer) could affect the Fund’s and shareholder’s income tax
liability for the current or past years and could create liability for
information reporting penalties. In addition, an IRS assertion of
taxability may impair the liquidity and the fair market value of the
securities. |
∎ |
Tracking Error
Risk — Tracking error is the divergence of an Underlying
Fund’s performance from that of its underlying index. Tracking error may
occur because of differences between the securities and other instruments
held in an Underlying Fund’s portfolio and those included in its
underlying index, pricing differences (including, as applicable,
differences between a security’s price at the local market close and an
Underlying Fund’s valuation of a security at the time of calculation of an
Underlying Fund’s NAV), differences in transaction costs, an Underlying
Fund’s holding of uninvested cash, differences in timing of the accrual of
or the valuation of dividends or other distributions, interest, the
requirements to maintain pass-through tax treatment, portfolio
transactions carried out to minimize the distribution of capital gains to
shareholders, changes to an underlying index and the cost to an Underlying
Fund of complying with various new or existing regulatory requirements.
These risks may be heightened during times of increased market volatility
or other unusual market conditions. In addition, tracking error may result
because an Underlying Fund incurs fees and expenses, while its underlying
index does not. |
∎ |
Treasury
Obligations Risk — Direct obligations of the U.S. Treasury
have historically involved little risk of loss of principal if held to
maturity. However, due to fluctuations in interest rates, the market value
of such securities may vary during the period shareholders own shares of
the Fund. In addition, notwithstanding that U.S. Treasury obligations are
backed by the full faith and credit of the United States, circumstances
could arise that could prevent the timely payment of interest or
principal, such as reaching the legislative “debt ceiling.” Such
non‑payment could result in losses to the Fund and substantial negative
consequences for the U.S. economy and the global financial
system. |
∎ |
U.S. Government
Issuer Risk — Treasury obligations may differ in their
interest rates, maturities, times of issuance and other characteristics.
Obligations of U.S. Government agencies and authorities are supported by
varying degrees of credit but generally are not backed by the full faith
and credit of the U.S. Government. No assurance can be given that the U.S.
Government will provide financial support to its agencies and authorities
if it is not obligated by law to do
so. |
∎ |
Valuation Risk
— The price an Underlying Fund could receive upon the sale
of a security or other asset may differ from the Underlying Fund’s
valuation of the security or other asset and from the value used by its
underlying index, particularly for securities or other assets that trade
in low volume or volatile markets or that are valued using a fair value
methodology as a result of trade suspensions or for other reasons. In
addition, the value of the securities or other assets in an Underlying
Fund’s portfolio may change on days or during time periods when
shareholders will not be able to purchase or sell the Underlying Fund’s
shares. Authorized Participants who purchase or redeem Underlying Fund
shares on days when an Underlying Fund is holding fair-valued securities
may receive fewer or more shares, or lower or higher redemption proceeds,
than they would have received had the securities not been fair valued or
been valued using a different methodology. The ability to value
investments may be impacted by technological issues or errors by pricing
services or other third-party service
providers. |
∎ |
Variable and
Floating Rate Instrument Risk — Variable and floating rate
securities provide for periodic adjustment in the interest rate paid on
the securities. These securities may be subject to greater illiquidity
risk than other fixed income securities, meaning the absence of an active
market for these securities could make it difficult for the Fund to
dispose of them at any given
time. |
For
the periods ended 12/31/23
Average
Annual Total Returns |
1 Year | 5 Years | 10 Years | |||||||||
LifePath
Index 2045 Fund — Investor A Shares |
||||||||||||
Return
Before Taxes |
% | % | % | |||||||||
Return
After Taxes on Distributions |
% | % | % | |||||||||
Return
After Taxes on Distributions and Sale of Fund Shares |
% | % | % | |||||||||
LifePath
Index 2045 Fund — Institutional Shares |
||||||||||||
Return
Before Taxes |
% | % | % | |||||||||
LifePath
Index 2045 Fund Custom Benchmark
(Reflects
no deduction for fees, expenses or taxes) |
% | % | % | |||||||||
Russell
1000® Index
(Reflects
no deduction for fees, expenses or taxes) |
% | % | % |
Name |
Portfolio Manager of the Fund Since | Title | ||
Chris
Chung, CFA |
2020 | Managing Director of BlackRock, Inc. | ||
Lisa
O’Connor, CFA |
2020 | Managing Director of BlackRock, Inc. | ||
Greg
Savage, CFA |
2018 | Managing Director of BlackRock, Inc. | ||
Paul
Whitehead |
2023 | Managing Director of BlackRock, Inc. |
Investor A Shares | Institutional Shares | |||
Minimum Initial Investment |
$1,000
for all accounts except:
• $50,
if establishing an Automatic Investment Plan.
• There
is no investment minimum for employer-sponsored retirement plans
(not including SEP IRAs, SIMPLE IRAs or SARSEPs).
• There
is no investment minimum for certain fee-based programs. |
There
is no minimum initial investment for:
• Employer-sponsored
retirement plans (not including SEP IRAs, SIMPLE IRAs or SARSEPs), state
sponsored 529 college savings plans, collective trust funds, investment
companies or other pooled investment vehicles, unaffiliated thrifts and
unaffiliated banks and trust companies, each of which may purchase shares
of the Fund through a Financial Intermediary that has entered into an
agreement with the Fund’s distributor to purchase such shares.
• Clients
of Financial Intermediaries that: (i) charge such clients a fee for
advisory, investment consulting, or similar services or (ii) have entered
into an agreement with the Fund’s distributor to offer Institutional
Shares through a no-load program or investment platform.
• Clients
investing through a self-directed IRA brokerage account program sponsored
by a retirement plan record-keeper, provided that such program offers only
mutual fund options and that the program maintains an account with the
Fund on an omnibus basis.
$2
million for individuals and “Institutional Investors,” which include, but
are not limited to, endowments, foundations, family offices, local, city,
and state governmental institutions, corporations and insurance company
separate accounts who may purchase shares of the Fund through a Financial
Intermediary that has entered into an agreement with the Fund’s
distributor to purchase such shares.
$1,000
for:
• Clients
investing through Financial Intermediaries that offer such shares on a
platform that charges a transaction based sales commission outside of the
Fund.
• Tax-qualified
accounts for insurance agents that are registered representatives of an
insurance company’s broker-dealer that has entered into an agreement with
the Fund’s distributor to offer Institutional Shares, and the family
members of such persons. | ||
Minimum Additional Investment | $50 for all accounts (with the exception of certain employer-sponsored retirement plans which may have a lower minimum). | No subsequent minimum. |
|
Investor A Shares |
Institutional Shares | ||||||||
Management
Fee1 |
||||||||||
Distribution
and/or Service (12b-1) Fees |
||||||||||
Other
Expenses1,3 |
||||||||||
Administration
Fees1 |
||||||||||
Independent
Expenses3 |
||||||||||
Acquired
Fund Fees and Expenses1,2 |
||||||||||
Total
Annual Fund Operating Expenses2 |
||||||||||
Fee
Waivers and/or Expense Reimbursements1,3 |
( |
( |
||||||||
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements1,3 |
1 | As
described in the “Management of the Funds” section of the Fund’s
prospectus beginning on page 181, BFA and BlackRock Advisors, LLC (“BAL”)
have contractually agreed to reimburse the Fund for Acquired Fund Fees and
Expenses up to a maximum amount equal to the combined Management Fee and
Administration Fee of each share class through June 30, 2025. In addition,
BFA has contractually agreed to waive its management fees by the amount of
investment advisory fees the Fund pays to BFA indirectly through its
investment in money market funds managed by BFA or its affiliates, through
|
2 |
3 | Independent
Expenses consist of the Fund’s allocable portion of the fees and expenses
of the independent trustees of the Trust, counsel to such independent
trustees and the independent registered public accounting firm that
provides audit services to the Fund. BAL and BFA have contractually agreed
to reimburse, or provide offsetting credits to, the Fund for Independent
Expenses through June 30, 2034. After giving effect to such contractual
arrangements, Independent Expenses will be 0.00%. Such contractual
arrangements may not be terminated prior to July 1, 2034 without the
consent of the Board of Trustees of the
Trust. |
1 Year | 3 Years | 5 Years | 10 Years | |||||||||||||
Investor
A Shares |
$ |
$ | $ | $ | ||||||||||||
Institutional
Shares |
$ |
$ | $ | $ |
Years Until Retirement | Equity Funds (Includes REITs) |
Fixed‑Income Funds | ||||||||
45 |
99 | % | 1 | % | ||||||
40 |
99 | % | 1 | % | ||||||
35 |
99 | % | 1 | % | ||||||
30 |
96 | % | 4 | % | ||||||
25 |
89 | % | 11 | % | ||||||
20 |
79 | % | 21 | % | ||||||
15 |
68 | % | 32 | % | ||||||
10 |
56 | % | 44 | % | ||||||
5 |
43 | % | 57 | % | ||||||
0 |
40 | % | 60 | % |
∎ |
Equity
Securities Risk — Stock markets are volatile. The price of
equity securities fluctuates based on changes in a company’s financial
condition and overall market and economic
conditions. |
∎ |
Investments in
Underlying Funds Risk — Because the Fund invests
substantially all of its assets in Underlying Funds, its investment
performance is related to the performance of the Underlying Funds. The
Fund’s net asset |
value
will change with changes in the value of the Underlying Funds and other
securities in which it invests. An investment in the Fund will entail more
direct and indirect costs and expenses than a direct investment in the
Underlying Funds. |
∎ |
Allocation
Risk — The Fund’s ability to achieve its investment
objective depends upon the Fund’s asset class allocation and the mix of
Underlying Funds. There is a risk that the asset class allocation or the
combination of Underlying Funds may be incorrect in view of actual market
conditions. In addition, the asset allocation or the combination of
Underlying Funds determined by BFA could result in underperformance as
compared to funds with similar investment objectives and
strategies. |
∎ |
Retirement
Income Risk — The Fund does not provide a guarantee that
sufficient capital appreciation will be achieved to provide adequate
income at and through retirement. The Fund also does not ensure that you
will have assets in your account sufficient to cover your retirement
expenses or that you will have enough saved to be able to retire in the
target year identified in the Fund’s name; this will depend on the amount
of money you have invested in the Fund, the length of time you have held
your investment, the returns of the markets over time, the amount you
spend in retirement, and your other assets and income
sources. |
∎ |
Affiliated Fund
Risk — In managing the Fund, BFA will have authority to
select and substitute underlying funds and ETFs. BFA may be subject to
potential conflicts of interest in selecting underlying funds and ETFs
because the fees paid to BFA by some underlying funds and ETFs are higher
than the fees paid by other underlying funds and ETFs. However, BFA is a
fiduciary to the Fund and is legally obligated to act in the Fund’s best
interests when selecting underlying funds and ETFs. If an underlying fund
or ETF holds interests in an affiliated fund, the Fund may be prohibited
from purchasing shares of that underlying fund or
ETF. |
∎ |
Market Risk and
Selection Risk — Market risk is the risk that one or more
markets in which the Fund invests will go down in value, including the
possibility that the markets will go down sharply and unpredictably. The
value of a security or other asset may decline due to changes in general
market conditions, economic trends or events that are not specifically
related to the issuer of the security or other asset, or factors that
affect a particular issuer or issuers, exchange, country, group of
countries, region, market, industry, group of industries, sector or asset
class. Local, regional or global events such as war, acts of terrorism,
the spread of infectious illness or other public health issues like
pandemics or epidemics, recessions, or other events could have a
significant impact on the Fund and its investments. Selection risk is the
risk that the securities selected by Fund management will underperform the
markets, the relevant indices or the securities selected by other funds
with similar investment objectives and investment strategies. This means
you may lose
money. |
∎ |
Risk of
Investing in the United States — Certain changes in the U.S.
economy, such as when the U.S. economy weakens or when its financial
markets decline, may have an adverse effect on the securities to which the
Fund has exposure. |
∎ |
Asset
Class Risk — Securities and other assets or financial
instruments in the underlying index of an Underlying Fund or in an
Underlying Fund’s portfolio may underperform in comparison to the general
financial markets, a particular financial market or other asset
classes. |
∎ |
Authorized
Participant Concentration Risk — Only an authorized
participant may engage in creation or redemption transactions directly
with an ETF, and none of those authorized participants is obligated to
engage in creation and/or redemption transactions. The Underlying Funds
that are ETFs have 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 an ETF and no other authorized participant is able to step
forward to create or redeem, the ETF shares may be more likely to trade at
a premium or discount to net asset value and possibly face trading halts
or delisting. Authorized participant concentration risk may be heightened
for ETFs that invest in securities issued by non‑U.S. issuers or other
securities or instruments that have lower trading
volumes. |
∎ |
Concentration
Risk — To the extent that an underlying index of an
Underlying Fund is concentrated in the securities of companies, a
particular market, industry, group of industries, sector or asset class,
country, region or group of countries, that Underlying Fund may be
adversely affected by the performance of those securities, may be subject
to increased price volatility and may be more susceptible to adverse
economic, market, political or regulatory occurrences affecting that
market, industry, group of industries, sector or asset class, country,
region or group of countries. |
∎ |
Currency
Risk — Because the net asset value of an Underlying Fund
that is an ETF is determined in U.S. dollars, the Underlying Fund’s net
asset value could decline if the currency of a non‑U.S. market in which
the Underlying Fund invests depreciates against the U.S. dollar or if
there are delays or limits on repatriation of such currency. Currency
exchange rates can be very volatile and can change quickly and
unpredictably. As a result, the net asset value of an Underlying Fund that
is an ETF may change quickly and without
warning. |
∎ |
Custody
Risk — Less developed securities markets are more likely to
experience problems with the clearing and settling of trades, as well as
the holding of securities by local banks, agents and
depositories. |
∎ |
Depositary
Receipts Risk — Depositary receipts are generally subject to
the same risks as the foreign securities that they evidence or into which
they may be converted. In addition to investment risks associated with the
underlying issuer, depositary receipts expose the Fund to additional risks
associated with the non‑uniform terms that apply to depositary receipt
programs, credit exposure to the depository bank and to the sponsors and
other parties with whom the depository bank establishes the programs,
currency risk and the risk of an illiquid market for depositary receipts.
The issuers of unsponsored depositary receipts are not obligated to
disclose information that is, in the United States, considered material.
Therefore, there may be less information available regarding these issuers
and there may not be a correlation between such information and the market
value of the depositary receipts. While depositary receipts provide an
alternative to directly purchasing underlying foreign securities in their
respective markets and currencies, they continue to be subject to many of
the risks associated with investing directly in foreign securities,
including political, economic, and currency
risk. |
∎ |
Derivatives
Risk — The Fund’s use of derivatives may increase its costs,
reduce the Fund’s returns and/or increase volatility. Derivatives involve
significant risks,
including: |
∎ |
Emerging
Markets Risk — Emerging markets are riskier than more
developed markets because they tend to develop unevenly and may never
fully develop. Investments in emerging markets may be considered
speculative. Emerging markets are more likely to experience hyperinflation
and currency devaluations, which adversely affect returns to U.S.
investors. In addition, many emerging securities markets have far lower
trading volumes and less liquidity than developed
markets. |
∎ |
Foreign
Securities Risk — Foreign investments often involve special
risks not present in U.S. investments that can increase the chances that
the Fund will lose money. These risks
include: |
∎ |
The
Fund generally holds its foreign securities and cash in foreign banks and
securities depositories, which may be recently organized or new to the
foreign custody business and may be subject to only limited or no
regulatory oversight. |
∎ |
Changes
in foreign currency exchange rates can affect the value of the Fund’s
portfolio. |
∎ |
The
economies of certain foreign markets may not compare favorably with the
economy of the United States with respect to such issues as growth of
gross national product, reinvestment of capital, resources and balance of
payments position. |
∎ |
The
governments of certain countries, or the U.S. Government with respect to
certain countries, may prohibit or impose substantial restrictions through
capital controls and/or sanctions on foreign investments in the capital
markets or certain industries in those countries, which may prohibit or
restrict the ability to own or transfer currency, securities, derivatives
or other assets. |
∎ |
Many
foreign governments do not supervise and regulate stock exchanges, brokers
and the sale of securities to the same extent as does the United States
and may not have laws to protect investors that are comparable to U.S.
securities laws. |
∎ |
Settlement
and clearance procedures in certain foreign markets may result in delays
in payment for or delivery of securities not typically associated with
settlement and clearance of U.S.
investments. |
∎ |
The
Fund’s claims to recover foreign withholding taxes may not be successful,
and if the likelihood of recovery of foreign withholding taxes materially
decreases, due to, for example, a change in tax regulation or approach in
the foreign country, accruals in the Fund’s net asset value for such
refunds may be written down partially or in full, which will adversely
affect the Fund’s net asset
value. |
∎ |
The
European financial markets have recently experienced volatility and
adverse trends due to concerns about economic downturns in, or rising
government debt levels of, several European countries as well as acts of
war in the region. These events may spread to other countries in Europe
and may affect the value and liquidity of certain of the Fund’s
investments. |
∎ |
Geographic
Risk — Some of the companies in which the Fund invests are
located in parts of the world that have historically been prone to natural
disasters, such as earthquakes, tornadoes, volcanic eruptions, droughts,
floods, hurricanes or tsunamis, and are economically sensitive to
environmental events. Any such event may adversely impact the economies of
these geographic areas or business operations of companies in these
geographic areas, causing an adverse impact on the value of the
Fund. |
∎ |
Income Risk
— Income risk is the risk that the Fund’s yield will vary as
short-term securities in its portfolio mature and the proceeds are
reinvested in securities with different interest
rates. |
∎ |
Inflation-Indexed Bonds Risk —
The principal value of an investment is not protected or otherwise
guaranteed by virtue of the Fund’s investments in inflation-indexed
bonds. |
∎ |
Indexing
Investment Risk — The Fund is not actively managed, and BFA
generally does not attempt to take defensive positions under any market
conditions, including declining
markets. |
∎ |
Index-Related
Risk — There is no guarantee that an Underlying Fund’s
investment results will have a high degree of correlation to those of its
underlying index or that the Underlying Fund will achieve its investment
objective. Market disruptions or high volatility, other unusual market
circumstances and regulatory restrictions could have an adverse effect on
an Underlying Fund’s ability to adjust its exposure to the required levels
in order to track its underlying index. Errors in index data, index
computations or the construction of an underlying index in accordance with
its methodology may occur from time to time and may not be identified and
corrected by the index provider for a period of time or at all, which may
have an adverse impact on an Underlying Fund and its shareholders. Unusual
market conditions or other unforeseen circumstances (such as natural
disasters, political unrest or war) may impact the index provider or a
third-party data provider and could cause the index provider to postpone a
scheduled rebalance. This could cause an underlying index to vary from its
normal or expected
composition. |
∎ |
Issuer
Risk — Fund performance depends on the performance of
individual securities to which the Fund has exposure. Changes in the
financial condition or credit rating of an issuer of those securities may
cause the value of the securities to
decline. |
∎ |
Large-Capitalization Companies
Risk — Large-capitalization companies may be less able than
smaller capitalization companies to adapt to changing market conditions.
Large-capitalization companies may be more mature and subject to more
limited growth potential compared with smaller capitalization companies.
During different market cycles, the performance of large-capitalization
companies has trailed the overall performance of the broader securities
markets. |
∎ |
Large
Shareholder and Large-Scale Redemption Risk — Certain
shareholders, including a third-party investor, the Fund’s adviser or an
affiliate of the Fund’s adviser, or another entity, may from time to time
own or manage a substantial amount of Fund shares, or may invest in the
Fund and hold its investment for a limited period of time. There can be no
assurance that any large shareholder or large group of shareholders would
not redeem their investment. Redemptions by large shareholders or a large
group of shareholders could have a significant negative impact on the
Fund. Redemptions of a large number of Fund shares could require the Fund
to dispose of assets to meet the redemption requests, which can accelerate
the realization of taxable income and cause the Fund to make taxable
distributions to its shareholders earlier than the Fund otherwise would
have. In addition, under certain circumstances, non‑redeeming shareholders
may be treated as receiving a disproportionately large taxable
distribution during or with respect to such year. In some circumstances,
the Fund may hold a relatively large proportion of its assets in cash in
anticipation of large redemptions, diluting its investment returns. These
large redemptions may also force the Fund to sell portfolio securities
when it might not otherwise do so, which may negatively impact the Fund’s
NAV and increase the Fund’s brokerage costs and/or accelerate the
realization of taxable income and/or capital gains to shareholders. In
addition, large redemptions can result in the Fund’s current expenses
being allocated over a smaller asset base, which generally results in an
increase in the Fund’s expense ratio. Because large redemptions can
adversely affect a portfolio manager’s ability to implement a fund’s
investment strategy, the Fund also reserves the right to redeem in‑kind,
subject to certain conditions. |
∎ |
Leverage Risk
— Some transactions may give rise to a form of economic
leverage. These transactions may include, among others, derivatives, and
may expose the Fund to greater risk and increase its costs. The use of
leverage may cause the Fund to liquidate portfolio positions when it may
not be advantageous to do so to satisfy its obligations or to meet the
applicable requirements of the Investment Company Act, and the rules
thereunder. Increases and decreases in the value of the Fund’s portfolio
will be magnified when the Fund uses
leverage. |
∎ |
Management
Risk — As an Underlying Fund may not fully replicate its
underlying index, it is subject to the risk that the Underlying Fund’s
investment manager’s investment strategy may not produce the intended
results. |
∎ |
Money Market
Securities Risk — If market conditions improve while the
Fund has invested some or all of its assets in high quality money market
securities, this strategy could result in reducing the potential gain from
the market upswing, thus reducing the Fund’s opportunity to achieve its
investment objective. |
∎ |
Mortgage- and
Asset-Backed Securities Risks — Mortgage- and asset-backed
securities represent interests in “pools” of mortgages or other assets,
including consumer loans or receivables held in trust. Mortgage- and
asset-backed securities are subject to credit, interest rate, prepayment
and extension risks. These securities also are subject to risk of default
on the underlying mortgage or asset, particularly during periods of
economic downturn. Small movements in interest rates (both increases and
decreases) may quickly and significantly reduce the value of certain
mortgage-backed securities. |
∎ |
National Closed
Market Trading Risk — To the extent that the underlying
securities or other instruments held by an Underlying Fund that is an ETF
trade on foreign exchanges or in foreign markets that may be closed when
the securities exchange on which the Underlying Fund’s shares trade is
open, there are likely to be deviations
between |
the
current price of such an underlying security and the last quoted price for
the underlying security (i.e., an Underlying Fund’s quote from the closed
foreign market). The impact of a closed foreign market on an Underlying
Fund is likely to be greater where a large portion of the Underlying
Fund’s underlying securities or other instruments trade on that closed
foreign market or when the foreign market is closed for unscheduled
reasons. These deviations could result in premiums or discounts to one or
more of the Underlying Funds’ net asset values that may be greater than
those experienced by other
ETFs. |
∎ |
Passive
Investment Risk — Because BFA does not select individual
companies in the underlying indexes for certain Underlying Funds, those
Underlying Funds may hold securities of companies that present risks that
an investment adviser researching individual securities might seek to
avoid. |
∎ |
Preferred
Securities Risk — Preferred securities may pay fixed or
adjustable rates of return. Preferred securities are subject to
issuer-specific and market risks applicable generally to equity
securities. In addition, a company’s preferred securities generally pay
dividends only after the company makes required payments to holders of its
bonds and other debt. For this reason, the value of preferred securities
will usually react more strongly than bonds and other debt to actual or
perceived changes in the company’s financial condition or prospects.
Preferred securities of smaller companies may be more vulnerable to
adverse developments than preferred securities of larger
companies. |
∎ |
Privatization
Risk — Some countries in which the Fund invests have
privatized, or have begun the process of privatizing, certain entities and
industries. Privatized entities may lose money or be
re‑nationalized. |
∎ |
Real
Estate-Related Securities Risk — The main risk of real
estate-related securities is that the value of the underlying real estate
may go down. Many factors may affect real estate values. These factors
include both the general and local economies, vacancy rates, changes in
rent schedules, tenant bankruptcies, the ability to re‑lease space under
expiring leases on attractive terms, the amount of new construction in a
particular area, the laws and regulations (including zoning, environmental
and tax laws) affecting real estate and the costs of owning, maintaining
and improving real estate. The availability of mortgage financing and
changes in interest rates may also affect real estate values. If the
Fund’s real estate-related investments are concentrated in one geographic
area or in one property type, the Fund will be particularly subject to the
risks associated with that area or property type. Many issuers of real
estate-related securities are highly leveraged, which increases the risk
to holders of such securities. The value of the securities the Fund buys
will not necessarily track the value of the underlying investments of the
issuers of such securities. In addition, certain issuers of real
estate-related securities may have developed or commenced development on
properties and may develop additional properties in the future. Real
estate development involves significant risks in addition to those
involved in the ownership and operation of established properties. Real
estate securities may have limited diversification and are, therefore,
subject to risks inherent in operating and financing a limited number of
projects. Real estate securities are also subject to heavy cash flow
dependency and defaults by borrowers or
tenants. |
∎ |
REIT Investment
Risk — Investments in REITs involve unique risks. REITs may
have limited financial resources, may trade less frequently and in limited
volume, may engage in dilutive offerings of securities and may be more
volatile than other securities. REIT issuers may also fail to maintain
their exemptions from investment company registration or fail to qualify
for the “dividends paid deduction” under the Internal Revenue Code, which
allows REITs to reduce their corporate taxable income for dividends paid
to their shareholders. |
∎ |
Representative
Sampling Risk — Representative sampling is a method of
indexing that involves investing in a representative sample of securities
that collectively have a similar investment profile to the index and
resemble the index in terms of risk factors and other key characteristics.
A passively managed
ETF may or may not hold every security in the index. When an ETF
deviates from a full replication indexing strategy to utilize a
representative sampling strategy, the ETF is subject to an increased risk
of tracking error, in that the securities selected in the aggregate for
the ETF may not have an investment profile similar to those of its
index. |
∎ |
Repurchase
Agreements Risk — If the other party to a repurchase
agreement defaults on its obligation under the agreement, the Fund may
suffer delays and incur costs or lose money in exercising its rights under
the agreement. If the seller fails to repurchase the security and the
market value of the security declines, the Fund may lose
money. |
∎ |
Shares of an
ETF May Trade at Prices Other Than Net Asset Value — Shares
of an ETF trade on exchanges at prices at, above or below their most
recent net asset value. The per share net asset value of an ETF is
calculated at the end of each business day and fluctuates with changes in
the market value of the ETF’s holdings since the most recent calculation.
The trading prices of an ETF’s shares fluctuate continuously throughout
trading hours based on market supply and demand rather than net asset
value. The trading prices of an ETF’s shares may deviate significantly
from net asset value during periods of market volatility. Any of these
factors may lead to an ETF’s shares trading at a premium or discount to
net asset value. However, because shares can be created and redeemed in
creation units, which are aggregated blocks of shares that authorized
participants who have entered into agreements with the ETF’s distributor
can purchase or redeem directly from the ETF, at net asset value (unlike
shares of many closed‑end funds, which frequently trade at appreciable
discounts from, and sometimes at premiums to, their net asset values),
large discounts or premiums to the net asset value of an ETF are not
likely to |
be
sustained over the long-term. While the creation/redemption feature is
designed to make it likely that an ETF’s shares normally trade on
exchanges at prices close to the ETF’s next calculated net asset value,
exchange prices are not expected to correlate exactly with an ETF’s net
asset value due to timing reasons as well as market supply and demand
factors. In addition, disruptions to creations and redemptions or the
existence of extreme market volatility may result in trading prices that
differ significantly from net asset value. If a shareholder purchases at a
time when the market price is at a premium to the net asset value or sells
at a time when the market price is at a discount to the net asset value,
the shareholder may sustain losses. The use of cash creations and
redemptions may also cause the ETFs’ shares to trade in the market at
greater bid‑ask spreads or greater premiums or discounts to the ETFs’
NAV. |
∎ |
Small and
Mid-Capitalization Company Risk — Companies with small or
mid‑size market capitalizations will normally have more limited product
lines, markets and financial resources and will be dependent upon a more
limited management group than larger capitalized companies. In addition,
it is more difficult to get information on smaller companies, which tend
to be less well known, have shorter operating histories, do not have
significant ownership by large investors and are followed by relatively
few securities analysts. |
∎ |
Structured
Securities Risk — Because structured securities of the type
in which the Fund may invest typically involve no credit enhancement,
their credit risk generally will be equivalent to that of the underlying
instruments, index or reference obligation and will also be subject to
counterparty risk. The Fund may have the right to receive payments only
from the structured security, and generally does not have direct rights
against the issuer or the entity that sold the assets to be securitized.
In addition to the general risks associated with debt securities discussed
herein, structured securities carry additional risks, including, but not
limited to: the possibility that distributions from collateral securities
will not be adequate to make interest or other payments; the quality of
the collateral may decline in value or default; and the possibility that
the structured securities are subordinate to other classes. The Fund is
permitted to invest in a class of structured securities that is either
subordinated or unsubordinated to the right of payment of another class.
Subordinated structured securities typically have higher yields and
present greater risks than unsubordinated structured securities.
Structured securities are typically sold in private placement
transactions, and there currently is no active trading market for
structured securities. Structured securities are based upon the movement
of one or more factors, including currency exchange rates, interest rates,
reference bonds and stock indices, and changes in interest rates and
impact of these factors may cause significant price fluctuations.
Additionally, changes in the reference instrument or security may cause
the interest rate on the structured security to be reduced to zero.
Certain issuers of such structured securities may be deemed to be
“investment companies” as defined in the Investment Company Act. As a
result, the Fund’s investment in such securities may be limited by certain
investment restrictions contained in the Investment Company
Act. |
∎ |
Tax
Risk — Although the Fund intends to invest primarily in
securities the interest on which, in the opinion of counsel to the issuer,
is exempt from federal income tax, the IRS has generally not ruled on the
taxability of the securities. An assertion by the IRS that a portfolio
security is not exempt from Federal income tax (contrary to indications
from the issuer) could affect the Fund’s and shareholder’s income tax
liability for the current or past years and could create liability for
information reporting penalties. In addition, an IRS assertion of
taxability may impair the liquidity and the fair market value of the
securities. |
∎ |
Tracking Error
Risk — Tracking error is the divergence of an Underlying
Fund’s performance from that of its underlying index. Tracking error may
occur because of differences between the securities and other instruments
held in an Underlying Fund’s portfolio and those included in its
underlying index, pricing differences (including, as applicable,
differences between a security’s price at the local market close and an
Underlying Fund’s valuation of a security at the time of calculation of an
Underlying Fund’s NAV), differences in transaction costs, an Underlying
Fund’s holding of uninvested cash, differences in timing of the accrual of
or the valuation of dividends or other distributions, interest, the
requirements to maintain pass-through tax treatment, portfolio
transactions carried out to minimize the distribution of capital gains to
shareholders, changes to an underlying index and the cost to an Underlying
Fund of complying with various new or existing regulatory requirements.
These risks may be heightened during times of increased market volatility
or other unusual market conditions. In addition, tracking error may result
because an Underlying Fund incurs fees and expenses, while its underlying
index does not. |
∎ |
Treasury
Obligations Risk — Direct obligations of the U.S. Treasury
have historically involved little risk of loss of principal if held to
maturity. However, due to fluctuations in interest rates, the market value
of such securities may vary during the period shareholders own shares of
the Fund. In addition, notwithstanding that U.S. Treasury obligations are
backed by the full faith and credit of the United States, circumstances
could arise that could prevent the timely payment of interest or
principal, such as reaching the legislative “debt ceiling.” Such
non‑payment could result in losses to the Fund and substantial negative
consequences for the U.S. economy and the global financial
system. |
∎ |
U.S. Government
Issuer Risk — Treasury obligations may differ in their
interest rates, maturities, times of issuance and other characteristics.
Obligations of U.S. Government agencies and authorities are supported by
varying degrees of credit but generally are not backed by the full faith
and credit of the U.S. Government. No assurance can be given that the U.S.
Government will provide financial support to its agencies and authorities
if it is not obligated by law to do
so. |
∎ |
Valuation Risk
— The price an Underlying Fund could receive upon the sale
of a security or other asset may differ from the Underlying Fund’s
valuation of the security or other asset and from the value used by its
underlying index, particularly for securities or other assets that trade
in low volume or volatile markets or that are valued using a fair value
methodology as a result of trade suspensions or for other reasons. In
addition, the value of the securities or other assets in an Underlying
Fund’s portfolio may change on days or during time periods when
shareholders will not be able to purchase or sell the Underlying Fund’s
shares. Authorized Participants who purchase or redeem Underlying Fund
shares on days when an Underlying Fund is holding fair-valued securities
may receive fewer or more shares, or lower or higher redemption proceeds,
than they would have received had the securities not been fair valued or
been valued using a different methodology. The ability to value
investments may be impacted by technological issues or errors by pricing
services or other third-party service
providers. |
∎ |
Variable and
Floating Rate Instrument Risk — Variable and floating rate
securities provide for periodic adjustment in the interest rate paid on
the securities. These securities may be subject to greater illiquidity
risk than other fixed income securities, meaning the absence of an active
market for these securities could make it difficult for the Fund to
dispose of them at any given
time. |
|
1 Year | 5 Years | 10 Years | |||||||||
LifePath
Index 2050 Fund — Investor A Shares |
||||||||||||
Return
Before Taxes |
% | % | % | |||||||||
Return
After Taxes on Distributions |
% | % | % | |||||||||
Return
After Taxes on Distributions and Sale of Fund Shares |
% | % | % | |||||||||
LifePath
Index 2050 Fund — Institutional Shares |
||||||||||||
Return
Before Taxes |
% | % | % | |||||||||
LifePath
Index 2050 Fund Custom Benchmark (Reflects no deduction for fees, expenses or taxes) |
% | % | % | |||||||||
Russell
1000®
Index (Reflects no deduction for fees, expenses or taxes) |
% | % | % |
Name |
Portfolio Manager of the Fund Since | Title | ||
Chris
Chung, CFA |
2020 | Managing Director of BlackRock, Inc. | ||
Lisa
O’Connor, CFA |
2020 | Managing Director of BlackRock, Inc. | ||
Greg
Savage, CFA |
2018 | Managing Director of BlackRock, Inc. | ||
Paul
Whitehead |
2023 | Managing Director of BlackRock, Inc. |
Investor A Shares | Institutional Shares | |||
Minimum Initial Investment |
$1,000
for all accounts except:
• $50,
if establishing an Automatic Investment Plan.
• There
is no investment minimum for employer-sponsored retirement plans
(not including SEP IRAs, SIMPLE IRAs or SARSEPs).
• There
is no investment minimum for certain fee-based programs. |
There
is no minimum initial investment for:
• Employer-sponsored
retirement plans (not including SEP IRAs, SIMPLE IRAs or SARSEPs), state
sponsored 529 college savings plans, collective trust funds, investment
companies or other pooled investment vehicles, unaffiliated thrifts and
unaffiliated banks and trust companies, each of which may purchase shares
of the Fund through a Financial Intermediary that has entered into an
agreement with the Fund’s distributor to purchase such shares.
• Clients
of Financial Intermediaries that: (i) charge such clients a fee for
advisory, investment consulting, or similar services or (ii) have
entered into an agreement with the Fund’s distributor to offer
Institutional Shares through a no-load program or investment
platform.
• Clients
investing through a self-directed IRA brokerage account program sponsored
by a retirement plan record-keeper, provided that such program offers only
mutual fund options and that the program maintains an account with the
Fund on an omnibus basis.
$2 million
for individuals and “Institutional Investors,” which include, but are not
limited to, endowments, foundations, family offices, local, city, and
state governmental institutions, corporations and insurance company
separate accounts who may purchase shares of the Fund through a Financial
Intermediary that has entered into an agreement with the Fund’s
distributor to purchase such shares.
$1,000
for:
• Clients
investing through Financial Intermediaries that offer such shares on a
platform that charges a transaction based sales commission outside of the
Fund.
• Tax-qualified
accounts for insurance agents that are registered representatives of an
insurance company’s broker-dealer that has entered into an agreement with
the Fund’s distributor to offer Institutional Shares, and the family
members of such persons. | ||
Minimum Additional Investment | $50 for all accounts (with the exception of certain employer-sponsored retirement plans which may have a lower minimum). | No subsequent minimum. |
|
Investor A Shares |
Institutional Shares | ||||||||
Management
Fee1 |
||||||||||
Distribution
and/or Service (12b-1) Fees |
||||||||||
Other
Expenses1,3 |
||||||||||
Administration
Fees1 |
||||||||||
Independent
Expenses3 |
||||||||||
Acquired
Fund Fees and Expenses1,2 |
||||||||||
Total
Annual Fund Operating Expenses2 |
||||||||||
Fee
Waivers and/or Expense Reimbursements1,3 |
( |
( |
||||||||
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements1,3 |
1 | As
described in the “Management of the Funds” section of the Fund’s
prospectus beginning on page 181, BFA and BlackRock Advisors, LLC (“BAL”)
have contractually agreed to reimburse the Fund for Acquired Fund Fees and
Expenses up to a maximum amount equal to the combined Management Fee and
Administration Fee of each share class through June 30, 2025. In addition,
BFA has contractually agreed to waive its management fees by the amount of
investment advisory fees the Fund pays to BFA indirectly through its
investment in money market funds managed by BFA or its affiliates, through
|
2 |
3 | Independent
Expenses consist of the Fund’s allocable portion of the fees and expenses
of the independent trustees of the Trust, counsel to such independent
trustees and the independent registered public accounting firm that
provides audit services to the Fund. BAL and BFA have contractually agreed
to reimburse, or provide offsetting credits to, the Fund for Independent
Expenses through June 30, 2034. After giving effect to such contractual
arrangements, Independent Expenses will be 0.00%. Such contractual
arrangements may not be terminated prior to July 1, 2034 without the
consent of the Board of Trustees of the
Trust. |
1 Year | 3 Years | 5 Years | 10 Years | |||||||||||||
Investor
A Shares |
$ |
$ | $ | $ | ||||||||||||
Institutional
Shares |
$ |
$ | $ | $ |
Years Until Retirement | Equity Funds (Includes REITs) |
Fixed‑Income Funds | ||||||||
45 |
99 | % | 1 | % | ||||||
40 |
99 | % | 1 | % | ||||||
35 |
99 | % | 1 | % | ||||||
30 |
96 | % | 4 | % | ||||||
25 |
89 | % | 11 | % | ||||||
20 |
79 | % | 21 | % | ||||||
15 |
68 | % | 32 | % | ||||||
10 |
56 | % | 44 | % | ||||||
5 |
43 | % | 57 | % | ||||||
0 |
40 | % | 60 | % |
∎ |
Equity
Securities Risk — Stock markets are volatile. The price of
equity securities fluctuates based on changes in a company’s financial
condition and overall market and economic
conditions. |
∎ |
Investments in
Underlying Funds Risk — Because the Fund invests
substantially all of its assets in Underlying Funds, its investment
performance is related to the performance of the Underlying Funds. The
Fund’s net asset |
value
will change with changes in the value of the Underlying Funds and other
securities in which it invests. An investment in the Fund will entail more
direct and indirect costs and expenses than a direct investment in the
Underlying Funds. |
∎ |
Allocation
Risk — The Fund’s ability to achieve its investment
objective depends upon the Fund’s asset class allocation and the mix of
Underlying Funds. There is a risk that the asset class allocation or the
combination of Underlying Funds may be incorrect in view of actual market
conditions. In addition, the asset allocation or the combination of
Underlying Funds determined by BFA could result in underperformance as
compared to funds with similar investment objectives and
strategies. |
∎ |
Retirement
Income Risk — The Fund does not provide a guarantee that
sufficient capital appreciation will be achieved to provide adequate
income at and through retirement. The Fund also does not ensure that you
will have assets in your account sufficient to cover your retirement
expenses or that you will have enough saved to be able to retire in the
target year identified in the Fund’s name; this will depend on the amount
of money you have invested in the Fund, the length of time you have held
your investment, the returns of the markets over time, the amount you
spend in retirement, and your other assets and income
sources. |
∎ |
Affiliated Fund
Risk — In managing the Fund, BFA will have authority to
select and substitute underlying funds and ETFs. BFA may be subject to
potential conflicts of interest in selecting underlying funds and ETFs
because the fees paid to BFA by some underlying funds and ETFs are higher
than the fees paid by other underlying funds and ETFs. However, BFA is a
fiduciary to the Fund and is legally obligated to act in the Fund’s best
interests when selecting underlying funds and ETFs. If an underlying fund
or ETF holds interests in an affiliated fund, the Fund may be prohibited
from purchasing shares of that underlying fund or
ETF. |
∎ |
Market Risk and
Selection Risk — Market risk is the risk that one or more
markets in which the Fund invests will go down in value, including the
possibility that the markets will go down sharply and unpredictably. The
value of a security or other asset may decline due to changes in general
market conditions, economic trends or events that are not specifically
related to the issuer of the security or other asset, or factors that
affect a particular issuer or issuers, exchange, country, group of
countries, region, market, industry, group of industries, sector or asset
class. Local, regional or global events such as war, acts of terrorism,
the spread of infectious illness or other public health issues like
pandemics or epidemics, recessions, or other events could have a
significant impact on the Fund and its investments. Selection risk is the
risk that the securities selected by Fund management will underperform the
markets, the relevant indices or the securities selected by other funds
with similar investment objectives and investment strategies. This means
you may lose
money. |
∎ |
Risk of
Investing in the United States — Certain changes in the U.S.
economy, such as when the U.S. economy weakens or when its financial
markets decline, may have an adverse effect on the securities to which the
Fund has exposure. |
∎ |
Asset
Class Risk — Securities and other assets or financial
instruments in the underlying index of an Underlying Fund or in an
Underlying Fund’s portfolio may underperform in comparison to the general
financial markets, a particular financial market or other asset
classes. |
∎ |
Authorized
Participant Concentration Risk — Only an authorized
participant may engage in creation or redemption transactions directly
with an ETF, and none of those authorized participants is obligated to
engage in creation and/or redemption transactions. The Underlying Funds
that are ETFs have 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 an ETF and no other authorized participant is able to step
forward to create or redeem, the ETF shares may be more likely to trade at
a premium or discount to net asset value and possibly face trading halts
or delisting. Authorized participant concentration risk may be heightened
for ETFs that invest in securities issued by non‑U.S. issuers or other
securities or instruments that have lower trading
volumes. |
∎ |
Concentration
Risk — To the extent that an underlying index of an
Underlying Fund is concentrated in the securities of companies, a
particular market, industry, group of industries, sector or asset class,
country, region or group of countries, that Underlying Fund may be
adversely affected by the performance of those securities, may be subject
to increased price volatility and may be more susceptible to adverse
economic, market, political or regulatory occurrences affecting that
market, industry, group of industries, sector or asset class, country,
region or group of countries. |
∎ |
Currency
Risk — Because the net asset value of an Underlying Fund
that is an ETF is determined in U.S. dollars, the Underlying Fund’s net
asset value could decline if the currency of a non‑U.S. market in which
the Underlying Fund invests depreciates against the U.S. dollar or if
there are delays or limits on repatriation of such currency. Currency
exchange rates can be very volatile and can change quickly and
unpredictably. As a result, the net asset value of an Underlying Fund that
is an ETF may change quickly and without
warning. |
∎ |
Custody
Risk — Less developed securities markets are more likely to
experience problems with the clearing and settling of trades, as well as
the holding of securities by local banks, agents and
depositories. |
∎ |
Depositary
Receipts Risk — Depositary receipts are generally subject to
the same risks as the foreign securities that they evidence or into which
they may be converted. In addition to investment risks associated with the
underlying issuer, depositary receipts expose the Fund to additional risks
associated with the non‑uniform terms that apply to depositary receipt
programs, credit exposure to the depository bank and to the sponsors and
other parties with whom the depository bank establishes the programs,
currency risk and the risk of an illiquid market for depositary receipts.
The issuers of unsponsored depositary receipts are not obligated to
disclose information that is, in the United States, considered material.
Therefore, there may be less information available regarding these issuers
and there may not be a correlation between such information and the market
value of the depositary receipts. While depositary receipts provide an
alternative to directly purchasing underlying foreign securities in their
respective markets and currencies, they continue to be subject to many of
the risks associated with investing directly in foreign securities,
including political, economic, and currency
risk. |
∎ |
Derivatives
Risk — The Fund’s use of derivatives may increase its costs,
reduce the Fund’s returns and/or increase volatility. Derivatives involve
significant risks,
including: |
∎ |
Emerging
Markets Risk — Emerging markets are riskier than more
developed markets because they tend to develop unevenly and may never
fully develop. Investments in emerging markets may be considered
speculative. Emerging markets are more likely to experience hyperinflation
and currency devaluations, which adversely affect returns to U.S.
investors. In addition, many emerging securities markets have far lower
trading volumes and less liquidity than developed
markets. |
∎ |
Foreign
Securities Risk — Foreign investments often involve special
risks not present in U.S. investments that can increase the chances that
the Fund will lose money. These risks
include: |
∎ |
The
Fund generally holds its foreign securities and cash in foreign banks and
securities depositories, which may be recently organized or new to the
foreign custody business and may be subject to only limited or no
regulatory oversight. |
∎ |
Changes
in foreign currency exchange rates can affect the value of the Fund’s
portfolio. |
∎ |
The
economies of certain foreign markets may not compare favorably with the
economy of the United States with respect to such issues as growth of
gross national product, reinvestment of capital, resources and balance of
payments position. |
∎ |
The
governments of certain countries, or the U.S. Government with respect to
certain countries, may prohibit or impose substantial restrictions through
capital controls and/or sanctions on foreign investments in the capital
markets or certain industries in those countries, which may prohibit or
restrict the ability to own or transfer currency, securities, derivatives
or other assets. |
∎ |
Many
foreign governments do not supervise and regulate stock exchanges, brokers
and the sale of securities to the same extent as does the United States
and may not have laws to protect investors that are comparable to U.S.
securities laws. |
∎ |
Settlement
and clearance procedures in certain foreign markets may result in delays
in payment for or delivery of securities not typically associated with
settlement and clearance of U.S.
investments. |
∎ |
The
Fund’s claims to recover foreign withholding taxes may not be successful,
and if the likelihood of recovery of foreign withholding taxes materially
decreases, due to, for example, a change in tax regulation or approach in
the foreign country, accruals in the Fund’s net asset value for such
refunds may be written down partially or in full, which will adversely
affect the Fund’s net asset
value. |
∎ |
The
European financial markets have recently experienced volatility and
adverse trends due to concerns about economic downturns in, or rising
government debt levels of, several European countries as well as acts of
war in the region. These events may spread to other countries in Europe
and may affect the value and liquidity of certain of the Fund’s
investments. |
∎ |
Geographic
Risk — Some of the companies in which the Fund invests are
located in parts of the world that have historically been prone to natural
disasters, such as earthquakes, tornadoes, volcanic eruptions, droughts,
floods, hurricanes or tsunamis, and are economically sensitive to
environmental events. Any such event may adversely impact the economies of
these geographic areas or business operations of companies in these
geographic areas, causing an adverse impact on the value of the
Fund. |
∎ |
Income Risk
— Income risk is the risk that the Fund’s yield will vary as
short-term securities in its portfolio mature and the proceeds are
reinvested in securities with different interest
rates. |
∎ |
Inflation-Indexed Bonds Risk —
The principal value of an investment is not protected or otherwise
guaranteed by virtue of the Fund’s investments in inflation-indexed
bonds. |
∎ |
Indexing
Investment Risk — The Fund is not actively managed, and BFA
generally does not attempt to take defensive positions under any market
conditions, including declining
markets. |
∎ |
Index-Related
Risk — There is no guarantee that an Underlying Fund’s
investment results will have a high degree of correlation to those of its
underlying index or that the Underlying Fund will achieve its investment
objective. Market disruptions or high volatility, other unusual market
circumstances and regulatory restrictions could have an adverse effect on
an Underlying Fund’s ability to adjust its exposure to the required levels
in order to track its underlying index. Errors in index data, index
computations or the construction of an underlying index in accordance with
its methodology may occur from time to time and may not be identified and
corrected by the index provider for a period of time or at all, which may
have an adverse impact on an Underlying Fund and its shareholders. Unusual
market conditions or other unforeseen circumstances (such as natural
disasters, political unrest or war) may impact the index provider or a
third-party data provider and could cause the index provider to postpone a
scheduled rebalance. This could cause an underlying index to vary from its
normal or expected
composition. |
∎ |
Issuer
Risk — Fund performance depends on the performance of
individual securities to which the Fund has exposure. Changes in the
financial condition or credit rating of an issuer of those securities may
cause the value of the securities to
decline. |
∎ |
Large-Capitalization Companies
Risk — Large-capitalization companies may be less able than
smaller capitalization companies to adapt to changing market conditions.
Large-capitalization companies may be more mature and subject to more
limited growth potential compared with smaller capitalization companies.
During different market cycles, the performance of large-capitalization
companies has trailed the overall performance of the broader securities
markets. |
∎ |
Large
Shareholder and Large-Scale Redemption Risk — Certain
shareholders, including a third-party investor, the Fund’s adviser or an
affiliate of the Fund’s adviser, or another entity, may from time to time
own or manage a substantial amount of Fund shares, or may invest in the
Fund and hold its investment for a limited period of time. There can be no
assurance that any large shareholder or large group of shareholders would
not redeem their investment. Redemptions by large shareholders or a large
group of shareholders could have a significant negative impact on the
Fund. Redemptions of a large number of Fund shares could require the Fund
to dispose of assets to meet the redemption requests, which can accelerate
the realization of taxable income and cause the Fund to make taxable
distributions to its shareholders earlier than the Fund otherwise would
have. In addition, under certain circumstances, non‑redeeming shareholders
may be treated as receiving a disproportionately large taxable
distribution during or with respect to such year. In some circumstances,
the Fund may hold a relatively large proportion of its assets in cash in
anticipation of large redemptions, diluting its investment returns. These
large redemptions may also force the Fund to sell portfolio securities
when it might not otherwise do so, which may negatively impact the Fund’s
NAV and increase the Fund’s brokerage costs and/or accelerate the
realization of taxable income and/or capital gains to shareholders. In
addition, large redemptions can result in the Fund’s current expenses
being allocated over a smaller asset base, which generally results in an
increase in the Fund’s expense ratio. Because large redemptions can
adversely affect a portfolio manager’s ability to implement a fund’s
investment strategy, the Fund also reserves the right to redeem in‑kind,
subject to certain conditions. |
∎ |
Leverage Risk
— Some transactions may give rise to a form of economic
leverage. These transactions may include, among others, derivatives, and
may expose the Fund to greater risk and increase its costs. The use of
leverage may cause the Fund to liquidate portfolio positions when it may
not be advantageous to do so to satisfy its obligations or to meet the
applicable requirements of the Investment Company Act, and the rules
thereunder. Increases and decreases in the value of the Fund’s portfolio
will be magnified when the Fund uses
leverage. |
∎ |
Management
Risk — As an Underlying Fund may not fully replicate its
underlying index, it is subject to the risk that the Underlying Fund’s
investment manager’s investment strategy may not produce the intended
results. |
∎ |
Money Market
Securities Risk — If market conditions improve while the
Fund has invested some or all of its assets in high quality money market
securities, this strategy could result in reducing the potential gain from
the market upswing, thus reducing the Fund’s opportunity to achieve its
investment objective. |
∎ |
Mortgage- and
Asset-Backed Securities Risks — Mortgage- and asset-backed
securities represent interests in “pools” of mortgages or other assets,
including consumer loans or receivables held in trust. Mortgage- and
asset-backed securities are subject to credit, interest rate, prepayment
and extension risks. These securities also are subject to risk of default
on the underlying mortgage or asset, particularly during periods of
economic downturn. Small movements in interest rates (both increases and
decreases) may quickly and significantly reduce the value of certain
mortgage-backed securities. |
∎ |
National Closed
Market Trading Risk — To the extent that the underlying
securities or other instruments held by an Underlying Fund that is an ETF
trade on foreign exchanges or in foreign markets that may be closed when
the securities exchange on which the Underlying Fund’s shares trade is
open, there are likely to be deviations
between |
the
current price of such an underlying security and the last quoted price for
the underlying security (i.e., an Underlying Fund’s quote from the closed
foreign market). The impact of a closed foreign market on an Underlying
Fund is likely to be greater where a large portion of the Underlying
Fund’s underlying securities or other instruments trade on that closed
foreign market or when the foreign market is closed for unscheduled
reasons. These deviations could result in premiums or discounts to one or
more of the Underlying Funds’ net asset values that may be greater than
those experienced by other
ETFs. |
∎ |
Passive
Investment Risk — Because BFA does not select individual
companies in the underlying indexes for certain Underlying Funds, those
Underlying Funds may hold securities of companies that present risks that
an investment adviser researching individual securities might seek to
avoid. |
∎ |
Preferred
Securities Risk — Preferred securities may pay fixed or
adjustable rates of return. Preferred securities are subject to
issuer-specific and market risks applicable generally to equity
securities. In addition, a company’s preferred securities generally pay
dividends only after the company makes required payments to holders of its
bonds and other debt. For this reason, the value of preferred securities
will usually react more strongly than bonds and other debt to actual or
perceived changes in the company’s financial condition or prospects.
Preferred securities of smaller companies may be more vulnerable to
adverse developments than preferred securities of larger
companies. |
∎ |
Privatization
Risk — Some countries in which the Fund invests have
privatized, or have begun the process of privatizing, certain entities and
industries. Privatized entities may lose money or be
re‑nationalized. |
∎ |
Real
Estate-Related Securities Risk — The main risk of real
estate-related securities is that the value of the underlying real estate
may go down. Many factors may affect real estate values. These factors
include both the general and local economies, vacancy rates, changes in
rent schedules, tenant bankruptcies, the ability to re‑lease space under
expiring leases on attractive terms, the amount of new construction in a
particular area, the laws and regulations (including zoning, environmental
and tax laws) affecting real estate and the costs of owning, maintaining
and improving real estate. The availability of mortgage financing and
changes in interest rates may also affect real estate values. If the
Fund’s real estate-related investments are concentrated in one geographic
area or in one property type, the Fund will be particularly subject to the
risks associated with that area or property type. Many issuers of real
estate-related securities are highly leveraged, which increases the risk
to holders of such securities. The value of the securities the Fund buys
will not necessarily track the value of the underlying investments of the
issuers of such securities. In addition, certain issuers of real
estate-related securities may have developed or commenced development on
properties and may develop additional properties in the future. Real
estate development involves significant risks in addition to those
involved in the ownership and operation of established properties. Real
estate securities may have limited diversification and are, therefore,
subject to risks inherent in operating and financing a limited number of
projects. Real estate securities are also subject to heavy cash flow
dependency and defaults by borrowers or
tenants. |
∎ |
REIT Investment
Risk — Investments in REITs involve unique risks. REITs may
have limited financial resources, may trade less frequently and in limited
volume, may engage in dilutive offerings of securities and may be more
volatile than other securities. REIT issuers may also fail to maintain
their exemptions from investment company registration or fail to qualify
for the “dividends paid deduction” under the Internal Revenue Code, which
allows REITs to reduce their corporate taxable income for dividends paid
to their shareholders. |
∎ |
Representative
Sampling Risk — Representative sampling is a method of
indexing that involves investing in a representative sample of securities
that collectively have a similar investment profile to the index and
resemble the index in terms of risk factors and other key characteristics.
A passively managed
ETF may or may not hold every security in the index. When an ETF
deviates from a full replication indexing strategy to utilize a
representative sampling strategy, the ETF is subject to an increased risk
of tracking error, in that the securities selected in the aggregate for
the ETF may not have an investment profile similar to those of its
index. |
∎ |
Repurchase
Agreements Risk — If the other party to a repurchase
agreement defaults on its obligation under the agreement, the Fund may
suffer delays and incur costs or lose money in exercising its rights under
the agreement. If the seller fails to repurchase the security and the
market value of the security declines, the Fund may lose
money. |
∎ |
Shares of an
ETF May Trade at Prices Other Than Net Asset Value — Shares
of an ETF trade on exchanges at prices at, above or below their most
recent net asset value. The per share net asset value of an ETF is
calculated at the end of each business day and fluctuates with changes in
the market value of the ETF’s holdings since the most recent calculation.
The trading prices of an ETF’s shares fluctuate continuously throughout
trading hours based on market supply and demand rather than net asset
value. The trading prices of an ETF’s shares may deviate significantly
from net asset value during periods of market volatility. Any of these
factors may lead to an ETF’s shares trading at a premium or discount to
net asset value. However, because shares can be created and redeemed in
creation units, which are aggregated blocks of shares that authorized
participants who have entered into agreements with the ETF’s distributor
can purchase or redeem directly from the ETF, at net asset value (unlike
shares of many closed‑end funds, which frequently trade at appreciable
discounts from, and sometimes at premiums to, their net asset values),
large discounts or premiums to the net asset value of an ETF are not
likely to |
be
sustained over the long-term. While the creation/redemption feature is
designed to make it likely that an ETF’s shares normally trade on
exchanges at prices close to the ETF’s next calculated net asset value,
exchange prices are not expected to correlate exactly with an ETF’s net
asset value due to timing reasons as well as market supply and demand
factors. In addition, disruptions to creations and redemptions or the
existence of extreme market volatility may result in trading prices that
differ significantly from net asset value. If a shareholder purchases at a
time when the market price is at a premium to the net asset value or sells
at a time when the market price is at a discount to the net asset value,
the shareholder may sustain losses. The use of cash creations and
redemptions may also cause the ETFs’ shares to trade in the market at
greater bid‑ask spreads or greater premiums or discounts to the ETFs’
NAV. |
∎ |
Small and
Mid-Capitalization Company Risk — Companies with small or
mid‑size market capitalizations will normally have more limited product
lines, markets and financial resources and will be dependent upon a more
limited management group than larger capitalized companies. In addition,
it is more difficult to get information on smaller companies, which tend
to be less well known, have shorter operating histories, do not have
significant ownership by large investors and are followed by relatively
few securities analysts. |
∎ |
Structured
Securities Risk — Because structured securities of the type
in which the Fund may invest typically involve no credit enhancement,
their credit risk generally will be equivalent to that of the underlying
instruments, index or reference obligation and will also be subject to
counterparty risk. The Fund may have the right to receive payments only
from the structured security, and generally does not have direct rights
against the issuer or the entity that sold the assets to be securitized.
In addition to the general risks associated with debt securities discussed
herein, structured securities carry additional risks, including, but not
limited to: the possibility that distributions from collateral securities
will not be adequate to make interest or other payments; the quality of
the collateral may decline in value or default; and the possibility that
the structured securities are subordinate to other classes. The Fund is
permitted to invest in a class of structured securities that is either
subordinated or unsubordinated to the right of payment of another class.
Subordinated structured securities typically have higher yields and
present greater risks than unsubordinated structured securities.
Structured securities are typically sold in private placement
transactions, and there currently is no active trading market for
structured securities. Structured securities are based upon the movement
of one or more factors, including currency exchange rates, interest rates,
reference bonds and stock indices, and changes in interest rates and
impact of these factors may cause significant price fluctuations.
Additionally, changes in the reference instrument or security may cause
the interest rate on the structured security to be reduced to zero.
Certain issuers of such structured securities may be deemed to be
“investment companies” as defined in the Investment Company Act. As a
result, the Fund’s investment in such securities may be limited by certain
investment restrictions contained in the Investment Company
Act. |
∎ |
Tax
Risk — Although the Fund intends to invest primarily in
securities the interest on which, in the opinion of counsel to the issuer,
is exempt from federal income tax, the IRS has generally not ruled on the
taxability of the securities. An assertion by the IRS that a portfolio
security is not exempt from Federal income tax (contrary to indications
from the issuer) could affect the Fund’s and shareholder’s income tax
liability for the current or past years and could create liability for
information reporting penalties. In addition, an IRS assertion of
taxability may impair the liquidity and the fair market value of the
securities. |
∎ |
Tracking Error
Risk — Tracking error is the divergence of an Underlying
Fund’s performance from that of its underlying index. Tracking error may
occur because of differences between the securities and other instruments
held in an Underlying Fund’s portfolio and those included in its
underlying index, pricing differences (including, as applicable,
differences between a security’s price at the local market close and an
Underlying Fund’s valuation of a security at the time of calculation of an
Underlying Fund’s NAV), differences in transaction costs, an Underlying
Fund’s holding of uninvested cash, differences in timing of the accrual of
or the valuation of dividends or other distributions, interest, the
requirements to maintain pass-through tax treatment, portfolio
transactions carried out to minimize the distribution of capital gains to
shareholders, changes to an underlying index and the cost to an Underlying
Fund of complying with various new or existing regulatory requirements.
These risks may be heightened during times of increased market volatility
or other unusual market conditions. In addition, tracking error may result
because an Underlying Fund incurs fees and expenses, while its underlying
index does not. |
∎ |
Treasury
Obligations Risk — Direct obligations of the U.S. Treasury
have historically involved little risk of loss of principal if held to
maturity. However, due to fluctuations in interest rates, the market value
of such securities may vary during the period shareholders own shares of
the Fund. In addition, notwithstanding that U.S. Treasury obligations are
backed by the full faith and credit of the United States, circumstances
could arise that could prevent the timely payment of interest or
principal, such as reaching the legislative “debt ceiling.” Such
non‑payment could result in losses to the Fund and substantial negative
consequences for the U.S. economy and the global financial
system. |
∎ |
U.S. Government
Issuer Risk — Treasury obligations may differ in their
interest rates, maturities, times of issuance and other characteristics.
Obligations of U.S. Government agencies and authorities are supported by
varying degrees of credit but generally are not backed by the full faith
and credit of the U.S. Government. No assurance can be given that the U.S.
Government will provide financial support to its agencies and authorities
if it is not obligated by law to do
so. |
∎ |
Valuation Risk
— The price an Underlying Fund could receive upon the sale
of a security or other asset may differ from the Underlying Fund’s
valuation of the security or other asset and from the value used by its
underlying index, particularly for securities or other assets that trade
in low volume or volatile markets or that are valued using a fair value
methodology as a result of trade suspensions or for other reasons. In
addition, the value of the securities or other assets in an Underlying
Fund’s portfolio may change on days or during time periods when
shareholders will not be able to purchase or sell the Underlying Fund’s
shares. Authorized Participants who purchase or redeem Underlying Fund
shares on days when an Underlying Fund is holding fair-valued securities
may receive fewer or more shares, or lower or higher redemption proceeds,
than they would have received had the securities not been fair valued or
been valued using a different methodology. The ability to value
investments may be impacted by technological issues or errors by pricing
services or other third-party service
providers. |
∎ |
Variable and
Floating Rate Instrument Risk — Variable and floating rate
securities provide for periodic adjustment in the interest rate paid on
the securities. These securities may be subject to greater illiquidity
risk than other fixed income securities, meaning the absence of an active
market for these securities could make it difficult for the Fund to
dispose of them at any given
time. |
|
1 Year | 5 Years | 10 Years | |||||||||
LifePath
Index 2055 Fund — Investor A Shares |
||||||||||||
Return
Before Taxes |
% | % | ||||||||||
Return
After Taxes on Distributions |
% | % | ||||||||||
Return
After Taxes on Distributions and Sale of Fund Shares |
% | % | ||||||||||
LifePath
Index 2055 Fund — Institutional Shares |
||||||||||||
Return
Before Taxes |
% | % | ||||||||||
LifePath
Index 2055 Fund Custom Benchmark (Reflects no deduction for fees, expenses or taxes) |
% | % | ||||||||||
Russell
1000®
Index (Reflects no deduction for fees, expenses or taxes) |
% | % |
Name |
Portfolio Manager of the Fund Since | Title | ||
Chris
Chung, CFA |
2020 | Managing Director of BlackRock, Inc. | ||
Lisa
O’Connor, CFA |
2020 | Managing Director of BlackRock, Inc. | ||
Greg
Savage, CFA |
2018 | Managing Director of BlackRock, Inc. | ||
Paul
Whitehead |
2023 | Managing Director of BlackRock, Inc. |
Investor A Shares | Institutional Shares | |||
Minimum Initial Investment |
$1,000
for all accounts except:
• $50,
if establishing an Automatic Investment Plan.
• There
is no investment minimum for employer-sponsored retirement plans
(not including SEP IRAs, SIMPLE IRAs or SARSEPs).
• There
is no investment minimum for certain fee-based programs. |
There
is no minimum initial investment for:
• Employer-sponsored
retirement plans (not including SEP IRAs, SIMPLE IRAs or SARSEPs), state
sponsored 529 college savings plans, collective trust funds, investment
companies or other pooled investment vehicles, unaffiliated thrifts and
unaffiliated banks and trust companies, each of which may purchase shares
of the Fund through a Financial Intermediary that has entered into an
agreement with the Fund’s distributor to purchase such shares.
• Clients
of Financial Intermediaries that: (i) charge such clients a fee for
advisory, investment consulting, or similar services or (ii) have entered
into an agreement with the Fund’s distributor to offer Institutional
Shares through a no-load program or investment platform.
• Clients
investing through a self-directed IRA brokerage account program sponsored
by a retirement plan record-keeper, provided that such program offers only
mutual fund options and that the program maintains an account with the
Fund on an omnibus basis.
$2
million for individuals and “Institutional Investors,” which include, but
are not limited to, endowments, foundations, family offices, local, city,
and state governmental institutions, corporations and insurance company
separate accounts who may purchase shares of the Fund through a Financial
Intermediary that has entered into an agreement with the Fund’s
distributor to purchase such shares.
$1,000
for:
• Clients
investing through Financial Intermediaries that offer such shares on a
platform that charges a transaction based sales commission outside of the
Fund.
• Tax-qualified
accounts for insurance agents that are registered representatives of an
insurance company’s broker-dealer that has entered into an agreement with
the Fund’s distributor to offer Institutional Shares, and the family
members of such persons. | ||
Minimum Additional Investment | $50 for all accounts (with the exception of certain employer-sponsored retirement plans which may have a lower minimum). | No subsequent minimum. |
|
Investor A Shares |
Institutional Shares | ||||||||
Management
Fee1 |
||||||||||
Distribution
and/or Service (12b-1) Fees |
||||||||||
Other
Expenses1,3 |
||||||||||
Administration
Fees1 |
||||||||||
Independent
Expenses3 |
||||||||||
Acquired
Fund Fees and Expenses1,2 |
||||||||||
Total
Annual Fund Operating Expenses2 |
||||||||||
Fee
Waivers and/or Expense Reimbursements1,3 |
( |
( |
||||||||
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements1,3 |
1 | As
described in the “Management of the Funds” section of the Fund’s
prospectus beginning on page 181, BFA and BlackRock Advisors, LLC
(“BAL”) have contractually agreed to reimburse the Fund for Acquired Fund
Fees and Expenses up to a maximum amount equal to the combined Management
Fee and Administration Fee of each share class through June 30, 2025. In
addition, BFA has contractually agreed to waive its management fees by the
amount of investment advisory fees the Fund pays to BFA indirectly through
its investment in money market funds managed by BFA or its affiliates,
through |
2 |
3 | Independent
Expenses consist of the Fund’s allocable portion of the fees and expenses
of the independent trustees of the Trust, counsel to such independent
trustees and the independent registered public accounting firm that
provides audit services to the Fund. BAL and BFA have contractually agreed
to reimburse, or provide offsetting credits to, the Fund for Independent
Expenses through June 30, 2034. After giving effect to such
contractual arrangements, Independent Expenses will be 0.00%. Such
contractual arrangements may not be terminated prior to July 1, 2034
without the consent of the Board of Trustees of the
Trust. |
1 Year | 3 Years | 5 Years | 10 Years | |||||||||||||
Investor
A Shares |
$ |
$ | $ | $ | ||||||||||||
Institutional
Shares |
$ |
$ | $ | $ |
Years Until Retirement | Equity Funds (Includes REITs) |
Fixed‑Income Funds | ||||||||
45 |
99 | % | 1 | % | ||||||
40 |
99 | % | 1 | % | ||||||
35 |
99 | % | 1 | % | ||||||
30 |
96 | % | 4 | % | ||||||
25 |
89 | % | 11 | % | ||||||
20 |
79 | % | 21 | % | ||||||
15 |
68 | % | 32 | % | ||||||
10 |
56 | % | 44 | % | ||||||
5 |
43 | % | 57 | % | ||||||
0 |
40 | % | 60 | % |
∎ |
Equity
Securities Risk — Stock markets are volatile. The price of
equity securities fluctuates based on changes in a company’s financial
condition and overall market and economic
conditions. |
∎ |
Investments in
Underlying Funds Risk — Because the Fund invests
substantially all of its assets in Underlying Funds, its investment
performance is related to the performance of the Underlying Funds. The
Fund’s net asset value will change with changes in the value of the
Underlying Funds and other securities in which it invests. An investment
in the Fund will entail more direct and indirect costs and expenses than a
direct investment in the Underlying
Funds. |
∎ |
Allocation
Risk — The Fund’s ability to achieve its investment
objective depends upon the Fund’s asset class allocation and the mix of
Underlying Funds. There is a risk that the asset class allocation or the
combination of Underlying Funds may be incorrect in view of actual market
conditions. In addition, the asset allocation or the combination of
Underlying Funds determined by BFA could result in underperformance as
compared to funds with similar investment objectives and
strategies. |
∎ |
Retirement
Income Risk — The Fund does not provide a guarantee that
sufficient capital appreciation will be achieved to provide adequate
income at and through retirement. The Fund also does not ensure that you
will have assets in your account sufficient to cover your retirement
expenses or that you will have enough saved to be able to retire in the
target year identified in the Fund’s name; this will depend on the amount
of money you have invested in the Fund, the length of time you have held
your investment, the returns of the markets over time, the amount you
spend in retirement, and your other assets and income
sources. |
∎ |
Affiliated Fund
Risk — In managing the Fund, BFA will have authority to
select and substitute underlying funds and ETFs. BFA may be subject to
potential conflicts of interest in selecting underlying funds and ETFs
because the fees paid to BFA by some underlying funds and ETFs are higher
than the fees paid by other underlying funds and ETFs. However, BFA is a
fiduciary to the Fund and is legally obligated to act in the Fund’s best
interests when selecting underlying funds and ETFs. If an underlying fund
or ETF holds interests in an affiliated fund, the Fund may be prohibited
from purchasing shares of that underlying fund or
ETF. |
∎ |
Market Risk and
Selection Risk — Market risk is the risk that one or more
markets in which the Fund invests will go down in value, including the
possibility that the markets will go down sharply and unpredictably. The
value of a security or other asset may decline due to changes in general
market conditions, economic trends or events that are not specifically
related to the issuer of the security or other asset, or factors that
affect a particular issuer or issuers, exchange, country, group of
countries, region, market, industry, group of industries, sector or asset
class. Local, regional or global events such as war, acts of terrorism,
the spread of infectious illness or other public health issues like
pandemics or epidemics, recessions, or other events could have a
significant impact on the Fund and its investments. Selection risk is the
risk that the securities selected by Fund management will underperform the
markets, the relevant indices or the securities selected by other funds
with similar investment objectives and investment strategies. This means
you may lose
money. |
∎ |
Risk of
Investing in the United States — Certain changes in the U.S.
economy, such as when the U.S. economy weakens or when its financial
markets decline, may have an adverse effect on the securities to which the
Fund has exposure. |
∎ |
Asset
Class Risk — Securities and other assets or financial
instruments in the underlying index of an Underlying Fund or in an
Underlying Fund’s portfolio may underperform in comparison to the general
financial markets, a particular financial market or other asset
classes. |
∎ |
Authorized
Participant Concentration Risk — Only an authorized
participant may engage in creation or redemption transactions directly
with an ETF, and none of those authorized participants is obligated to
engage in creation and/or redemption transactions. The Underlying Funds
that are ETFs have 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 an ETF and no other authorized participant is able to step
forward to create or redeem, the ETF shares may be more likely to trade at
a premium or discount to net asset value and possibly face trading halts
or delisting. Authorized participant concentration risk may be heightened
for ETFs that invest in securities issued by non‑U.S. issuers or other
securities or instruments that have lower trading
volumes. |
∎ |
Concentration
Risk — To the extent that an underlying index of an
Underlying Fund is concentrated in the securities of companies, a
particular market, industry, group of industries, sector or asset class,
country, region or group of countries, that Underlying Fund may be
adversely affected by the performance of those securities, may be subject
to increased price volatility and may be more susceptible to adverse
economic, market, political or regulatory occurrences affecting that
market, industry, group of industries, sector or asset class, country,
region or group of countries. |
∎ |
Currency
Risk — Because the net asset value of an Underlying Fund
that is an ETF is determined in U.S. dollars, the Underlying Fund’s net
asset value could decline if the currency of a non‑U.S. market in which
the Underlying Fund invests depreciates against the U.S. dollar or if
there are delays or limits on repatriation of such currency. Currency
exchange rates can be very volatile and can change quickly and
unpredictably. As a result, the net asset value of an Underlying Fund that
is an ETF may change quickly and without
warning. |
∎ |
Custody
Risk — Less developed securities markets are more likely to
experience problems with the clearing and settling of trades, as well as
the holding of securities by local banks, agents and
depositories. |
∎ |
Depositary
Receipts Risk — Depositary receipts are generally subject to
the same risks as the foreign securities that they evidence or into which
they may be converted. In addition to investment risks associated with the
underlying issuer, depositary receipts expose the Fund to additional risks
associated with the non‑uniform terms that apply to depositary receipt
programs, credit exposure to the depository bank and to the sponsors and
other parties with whom the depository bank establishes the programs,
currency risk and the risk of an illiquid market for depositary receipts.
The issuers of unsponsored depositary receipts are not obligated to
disclose information that is, in the United States, considered material.
Therefore, there may be less information available regarding these issuers
and there may not be a correlation between such information and the market
value of the depositary receipts. While depositary receipts provide an
alternative to directly purchasing underlying foreign securities in their
respective markets and currencies, they continue to be subject to many of
the risks associated with investing directly in foreign securities,
including political, economic, and currency
risk. |
∎ |
Derivatives
Risk — The Fund’s use of derivatives may increase its costs,
reduce the Fund’s returns and/or increase volatility. Derivatives involve
significant risks,
including: |
∎ |
Emerging
Markets Risk — Emerging markets are riskier than more
developed markets because they tend to develop unevenly and may never
fully develop. Investments in emerging markets may be considered
speculative. Emerging markets are more likely to experience hyperinflation
and currency devaluations, which adversely affect returns to U.S.
investors. In addition, many emerging securities markets have far lower
trading volumes and less liquidity than developed
markets. |
∎ |
Foreign
Securities Risk — Foreign investments often involve special
risks not present in U.S. investments that can increase the chances that
the Fund will lose money. These risks
include: |
∎ |
The
Fund generally holds its foreign securities and cash in foreign banks and
securities depositories, which may be recently organized or new to the
foreign custody business and may be subject to only limited or no
regulatory oversight. |
∎ |
Changes
in foreign currency exchange rates can affect the value of the Fund’s
portfolio. |
∎ |
The
economies of certain foreign markets may not compare favorably with the
economy of the United States with respect to such issues as growth of
gross national product, reinvestment of capital, resources and balance of
payments position. |
∎ |
The
governments of certain countries, or the U.S. Government with respect to
certain countries, may prohibit or impose substantial restrictions through
capital controls and/or sanctions on foreign investments in the capital
markets or certain industries in those countries, which may prohibit or
restrict the ability to own or transfer currency, securities, derivatives
or other assets. |
∎ |
Many
foreign governments do not supervise and regulate stock exchanges, brokers
and the sale of securities to the same extent as does the United States
and may not have laws to protect investors that are comparable to U.S.
securities laws. |
∎ |
Settlement
and clearance procedures in certain foreign markets may result in delays
in payment for or delivery of securities not typically associated with
settlement and clearance of U.S.
investments. |
∎ |
The
Fund’s claims to recover foreign withholding taxes may not be successful,
and if the likelihood of recovery of foreign withholding taxes materially
decreases, due to, for example, a change in tax regulation or approach in
the foreign country, accruals in the Fund’s net asset value for such
refunds may be written down partially or in full, which will adversely
affect the Fund’s net asset
value. |
∎ |
The
European financial markets have recently experienced volatility and
adverse trends due to concerns about economic downturns in, or rising
government debt levels of, several European countries as well as acts of
war in the region. These events may spread to other countries in Europe
and may affect the value and liquidity of certain of the Fund’s
investments. |
∎ |
Geographic
Risk — Some of the companies in which the Fund invests are
located in parts of the world that have historically been prone to natural
disasters, such as earthquakes, tornadoes, volcanic eruptions, droughts,
floods, |
hurricanes
or tsunamis, and are economically sensitive to environmental events. Any
such event may adversely impact the economies of these geographic areas or
business operations of companies in these geographic areas, causing an
adverse impact on the value of the
Fund. |
∎ |
Income Risk
— Income risk is the risk that the Fund’s yield will vary as
short-term securities in its portfolio mature and the proceeds are
reinvested in securities with different interest
rates. |
∎ |
Inflation-Indexed Bonds Risk —
The principal value of an investment is not protected or otherwise
guaranteed by virtue of the Fund’s investments in inflation-indexed
bonds. |
∎ |
Indexing
Investment Risk — The Fund is not actively managed, and BFA
generally does not attempt to take defensive positions under any market
conditions, including declining
markets. |
∎ |
Index-Related
Risk — There is no guarantee that an Underlying Fund’s
investment results will have a high degree of correlation to those of its
underlying index or that the Underlying Fund will achieve its investment
objective. Market disruptions or high volatility, other unusual market
circumstances and regulatory restrictions could have an adverse effect on
an Underlying Fund’s ability to adjust its exposure to the required levels
in order to track its underlying index. Errors in index data, index
computations or the construction of an underlying index in accordance with
its methodology may occur from time to time and may not be identified and
corrected by the index provider for a period of time or at all, which may
have an adverse impact on an Underlying Fund and its shareholders. Unusual
market conditions or other unforeseen circumstances (such as natural
disasters, political unrest or war) may impact the index provider or a
third-party data provider and could cause the index provider to postpone a
scheduled rebalance. This could cause an underlying index to vary from its
normal or expected
composition. |
∎ |
Issuer
Risk — Fund performance depends on the performance of
individual securities to which the Fund has exposure. Changes in the
financial condition or credit rating of an issuer of those securities may
cause the value of the securities to
decline. |
∎ |
Large-Capitalization Companies
Risk — Large-capitalization companies may be less able than
smaller capitalization companies to adapt to changing market conditions.
Large-capitalization companies may be more mature and subject to more
limited growth potential compared with smaller capitalization companies.
During different market cycles, the performance of large-capitalization
companies has trailed the overall performance of the broader securities
markets. |
∎ |
Large
Shareholder and Large-Scale Redemption Risk — Certain
shareholders, including a third-party investor, the Fund’s adviser or an
affiliate of the Fund’s adviser, or another entity, may from time to time
own or manage a substantial amount of Fund shares, or may invest in the
Fund and hold its investment for a limited period of time. There can be no
assurance that any large shareholder or large group of shareholders would
not redeem their investment. Redemptions by large shareholders or a large
group of shareholders could have a significant negative impact on the
Fund. Redemptions of a large number of Fund shares could require the Fund
to dispose of assets to |
meet
the redemption requests, which can accelerate the realization of taxable
income and cause the Fund to make taxable distributions to its
shareholders earlier than the Fund otherwise would have. In addition,
under certain circumstances, non‑redeeming shareholders may be treated as
receiving a disproportionately large taxable distribution during or with
respect to such year. In some circumstances, the Fund may hold a
relatively large proportion of its assets in cash in anticipation of large
redemptions, diluting its investment returns. These large redemptions may
also force the Fund to sell portfolio securities when it might not
otherwise do so, which may negatively impact the Fund’s NAV and increase
the Fund’s brokerage costs and/or accelerate the realization of taxable
income and/or capital gains to shareholders. In addition, large
redemptions can result in the Fund’s current expenses being allocated over
a smaller asset base, which generally results in an increase in the Fund’s
expense ratio. Because large redemptions can adversely affect a portfolio
manager’s ability to implement a fund’s investment strategy, the Fund also
reserves the right to redeem in‑kind, subject to certain
conditions. |
∎ |
Leverage Risk
— Some transactions may give rise to a form of economic
leverage. These transactions may include, among others, derivatives, and
may expose the Fund to greater risk and increase its costs. The use of
leverage may cause the Fund to liquidate portfolio positions when it may
not be advantageous to do so to satisfy its obligations or to meet the
applicable requirements of the Investment Company Act, and the rules
thereunder. Increases and decreases in the value of the Fund’s portfolio
will be magnified when the Fund uses
leverage. |
∎ |
Management
Risk — As an Underlying Fund may not fully replicate its
underlying index, it is subject to the risk that the Underlying Fund’s
investment manager’s investment strategy may not produce the intended
results. |
∎ |
Money Market
Securities Risk — If market conditions improve while the
Fund has invested some or all of its assets in high quality money market
securities, this strategy could result in reducing the potential gain from
the market upswing, thus reducing the Fund’s opportunity to achieve its
investment objective. |
∎ |
Mortgage- and
Asset-Backed Securities Risks — Mortgage- and asset-backed
securities represent interests in “pools” of mortgages or other assets,
including consumer loans or receivables held in trust. Mortgage- and
asset-backed securities are subject to credit, interest rate, prepayment
and extension risks. These securities also are subject to risk of default
on the underlying mortgage or asset, particularly during periods of
economic downturn. Small movements in interest rates (both increases and
decreases) may quickly and significantly reduce the value of certain
mortgage-backed securities. |
∎ |
National Closed
Market Trading Risk — To the extent that the underlying
securities or other instruments held by an Underlying Fund that is an ETF
trade on foreign exchanges or in foreign markets that may be closed when
the securities exchange on which the Underlying Fund’s shares trade is
open, there are likely to be deviations between the current price of such
an underlying security and the last quoted price for the underlying
security (i.e., an Underlying Fund’s quote from the closed foreign
market). The impact of a closed foreign market on an Underlying Fund is
likely to be greater where a large portion of the Underlying Fund’s
underlying securities or other instruments trade on that closed foreign
market or when the foreign market is closed for unscheduled reasons. These
deviations could result in premiums or discounts to one or more of the
Underlying Funds’ net asset values that may be greater than those
experienced by other ETFs. |
∎ |
Passive
Investment Risk — Because BFA does not select individual
companies in the underlying indexes for certain Underlying Funds, those
Underlying Funds may hold securities of companies that present risks that
an investment adviser researching individual securities might seek to
avoid. |
∎ |
Preferred
Securities Risk — Preferred securities may pay fixed or
adjustable rates of return. Preferred securities are subject to
issuer-specific and market risks applicable generally to equity
securities. In addition, a company’s preferred securities generally pay
dividends only after the company makes required payments to holders of its
bonds and other debt. For this reason, the value of preferred securities
will usually react more strongly than bonds and other debt to actual or
perceived changes in the company’s financial condition or prospects.
Preferred securities of smaller companies may be more vulnerable to
adverse developments than preferred securities of larger
companies. |
∎ |
Privatization
Risk — Some countries in which the Fund invests have
privatized, or have begun the process of privatizing, certain entities and
industries. Privatized entities may lose money or be
re‑nationalized. |
∎ |
Real
Estate-Related Securities Risk — The main risk of real
estate-related securities is that the value of the underlying real estate
may go down. Many factors may affect real estate values. These factors
include both the general and local economies, vacancy rates, changes in
rent schedules, tenant bankruptcies, the ability to re‑lease space under
expiring leases on attractive terms, the amount of new construction in a
particular area, the laws and regulations (including zoning, environmental
and tax laws) affecting real estate and the costs of owning, maintaining
and improving real estate. The availability of mortgage financing and
changes in interest rates may also affect real estate values. If the
Fund’s real estate-related investments are concentrated in one geographic
area or in one property type, the Fund will be particularly subject to the
risks associated with that area or property type. Many issuers of real
estate-related securities are highly leveraged, which increases the risk
to holders of such securities. The value of the securities the Fund buys
will not necessarily track the value of the underlying investments of
the |
issuers
of such securities. In addition, certain issuers of real estate-related
securities may have developed or commenced development on properties and
may develop additional properties in the future. Real estate development
involves significant risks in addition to those involved in the ownership
and operation of established properties. Real estate securities may have
limited diversification and are, therefore, subject to risks inherent in
operating and financing a limited number of projects. Real estate
securities are also subject to heavy cash flow dependency and defaults by
borrowers or tenants. |
∎ |
REIT Investment
Risk — Investments in REITs involve unique risks. REITs may
have limited financial resources, may trade less frequently and in limited
volume, may engage in dilutive offerings of securities and may be more
volatile than other securities. REIT issuers may also fail to maintain
their exemptions from investment company registration or fail to qualify
for the “dividends paid deduction” under the Internal Revenue Code, which
allows REITs to reduce their corporate taxable income for dividends paid
to their shareholders. |
∎ |
Representative
Sampling Risk — Representative sampling is a method of
indexing that involves investing in a representative sample of securities
that collectively have a similar investment profile to the index and
resemble the index in terms of risk factors and other key characteristics.
A passively managed
ETF may or may not hold every security in the index. When an ETF
deviates from a full replication indexing strategy to utilize a
representative sampling strategy, the ETF is subject to an increased risk
of tracking error, in that the securities selected in the aggregate for
the ETF may not have an investment profile similar to those of its
index. |
∎ |
Repurchase
Agreements Risk — If the other party to a repurchase
agreement defaults on its obligation under the agreement, the Fund may
suffer delays and incur costs or lose money in exercising its rights under
the agreement. If the seller fails to repurchase the security and the
market value of the security declines, the Fund may lose
money. |
∎ |
Shares of an
ETF May Trade at Prices Other Than Net Asset Value — Shares
of an ETF trade on exchanges at prices at, above or below their most
recent net asset value. The per share net asset value of an ETF is
calculated at the end of each business day and fluctuates with changes in
the market value of the ETF’s holdings since the most recent calculation.
The trading prices of an ETF’s shares fluctuate continuously throughout
trading hours based on market supply and demand rather than net asset
value. The trading prices of an ETF’s shares may deviate significantly
from net asset value during periods of market volatility. Any of these
factors may lead to an ETF’s shares trading at a premium or discount to
net asset value. However, because shares can be created and redeemed in
creation units, which are aggregated blocks of shares that authorized
participants who have entered into agreements with the ETF’s distributor
can purchase or redeem directly from the ETF, at net asset value (unlike
shares of many closed‑end funds, which frequently trade at appreciable
discounts from, and sometimes at premiums to, their net asset values),
large discounts or premiums to the net asset value of an ETF are not
likely to be sustained over the long-term. While the creation/redemption
feature is designed to make it likely that an ETF’s shares normally trade
on exchanges at prices close to the ETF’s next calculated net asset value,
exchange prices are not expected to correlate exactly with an ETF’s net
asset value due to timing reasons as well as market supply and demand
factors. In addition, disruptions to creations and redemptions or the
existence of extreme market volatility may result in trading prices that
differ significantly from net asset value. If a shareholder purchases at a
time when the market price is at a premium to the net asset value or sells
at a time when the market price is at a discount to the net asset value,
the shareholder may sustain losses. The use of cash creations and
redemptions may also cause the ETFs’ shares to trade in the market at
greater bid‑ask spreads or greater premiums or discounts to the ETFs’
NAV. |
∎ |
Small and
Mid-Capitalization Company Risk — Companies with small or
mid‑size market capitalizations will normally have more limited product
lines, markets and financial resources and will be dependent upon a more
limited management group than larger capitalized companies. In addition,
it is more difficult to get information on smaller companies, which tend
to be less well known, have shorter operating histories, do not have
significant ownership by large investors and are followed by relatively
few securities analysts. |
∎ |
Structured
Securities Risk — Because structured securities of the type
in which the Fund may invest typically involve no credit enhancement,
their credit risk generally will be equivalent to that of the underlying
instruments, index or reference obligation and will also be subject to
counterparty risk. The Fund may have the right to receive payments only
from the structured security, and generally does not have direct rights
against the issuer or the entity that sold the assets to be securitized.
In addition to the general risks associated with debt securities discussed
herein, structured securities carry additional risks, including, but not
limited to: the possibility that distributions from collateral securities
will not be adequate to make interest or other payments; the quality of
the collateral may decline in value or default; and the possibility that
the structured securities are subordinate to other classes. The Fund is
permitted to invest in a class of structured securities that is either
subordinated or unsubordinated to the right of payment of another class.
Subordinated structured securities typically have higher yields and
present greater risks than unsubordinated structured securities.
Structured securities are typically sold in private placement
transactions, and there currently is no active trading market for
structured securities. Structured securities are based upon the movement
of one or more factors, including currency exchange rates, interest rates,
reference bonds and stock indices, and changes in interest rates and
impact of these factors may cause significant price fluctuations.
Additionally, changes in the reference instrument or security may cause
the interest rate on the |
structured
security to be reduced to zero. Certain issuers of such structured
securities may be deemed to be “investment companies” as defined in the
Investment Company Act. As a result, the Fund’s investment in such
securities may be limited by certain investment restrictions contained in
the Investment Company Act. |
∎ |
Tax
Risk — Although the Fund intends to invest primarily in
securities the interest on which, in the opinion of counsel to the issuer,
is exempt from federal income tax, the IRS has generally not ruled on the
taxability of the securities. An assertion by the IRS that a portfolio
security is not exempt from Federal income tax (contrary to indications
from the issuer) could affect the Fund’s and shareholder’s income tax
liability for the current or past years and could create liability for
information reporting penalties. In addition, an IRS assertion of
taxability may impair the liquidity and the fair market value of the
securities. |
∎ |
Tracking Error
Risk — Tracking error is the divergence of an Underlying
Fund’s performance from that of its underlying index. Tracking error may
occur because of differences between the securities and other instruments
held in an Underlying Fund’s portfolio and those included in its
underlying index, pricing differences (including, as applicable,
differences between a security’s price at the local market close and an
Underlying Fund’s valuation of a security at the time of calculation of an
Underlying Fund’s NAV), differences in transaction costs, an Underlying
Fund’s holding of uninvested cash, differences in timing of the accrual of
or the valuation of dividends or other distributions, interest, the
requirements to maintain pass-through tax treatment, portfolio
transactions carried out to minimize the distribution of capital gains to
shareholders, changes to an underlying index and the cost to an Underlying
Fund of complying with various new or existing regulatory requirements.
These risks may be heightened during times of increased market volatility
or other unusual market conditions. In addition, tracking error may result
because an Underlying Fund incurs fees and expenses, while its underlying
index does not. |
∎ |
Treasury
Obligations Risk — Direct obligations of the U.S. Treasury
have historically involved little risk of loss of principal if held to
maturity. However, due to fluctuations in interest rates, the market value
of such securities may vary during the period shareholders own shares of
the Fund. In addition, notwithstanding that U.S. Treasury obligations are
backed by the full faith and credit of the United States, circumstances
could arise that could prevent the timely payment of interest or
principal, such as reaching the legislative “debt ceiling.” Such
non‑payment could result in losses to the Fund and substantial negative
consequences for the U.S. economy and the global financial
system. |
∎ |
U.S. Government
Issuer Risk — Treasury obligations may differ in their
interest rates, maturities, times of issuance and other characteristics.
Obligations of U.S. Government agencies and authorities are supported by
varying degrees of credit but generally are not backed by the full faith
and credit of the U.S. Government. No assurance can be given that the U.S.
Government will provide financial support to its agencies and authorities
if it is not obligated by law to do
so. |
∎ |
Valuation Risk
— The price an Underlying Fund could receive upon the sale
of a security or other asset may differ from the Underlying Fund’s
valuation of the security or other asset and from the value used by its
underlying index, particularly for securities or other assets that trade
in low volume or volatile markets or that are valued using a fair value
methodology as a result of trade suspensions or for other reasons. In
addition, the value of the securities or other assets in an Underlying
Fund’s portfolio may change on days or during time periods when
shareholders will not be able to purchase or sell the Underlying Fund’s
shares. Authorized Participants who purchase or redeem Underlying Fund
shares on days when an Underlying Fund is holding fair-valued securities
may receive fewer or more shares, or lower or higher redemption proceeds,
than they would have received had the securities not been fair valued or
been valued using a different methodology. The ability to value
investments may be impacted by technological issues or errors by pricing
services or other third-party service
providers. |
∎ |
Variable and
Floating Rate Instrument Risk — Variable and floating rate
securities provide for periodic adjustment in the interest rate paid on
the securities. These securities may be subject to greater illiquidity
risk than other fixed income securities, meaning the absence of an active
market for these securities could make it difficult for the Fund to
dispose of them at any given
time. |
|
1 Year | 5 Years |
Since Inception
( |
|||||||||
LifePath
Index 2060 Fund — Investor A Shares |
||||||||||||
Return
Before Taxes |
% | % | % | |||||||||
Return
After Taxes on Distributions |
% | % | % | |||||||||
Return
After Taxes on Distributions and Sale of Fund Shares |
% | % | % | |||||||||
LifePath
Index 2060 Fund — Institutional Shares |
||||||||||||
Return
Before Taxes |
% | % | % | |||||||||
LifePath
Index 2060 Fund Custom Benchmark (Reflects no deduction for fees, expenses or taxes) |
% | % | % | |||||||||
Russell
1000®
Index (Reflects no deduction for fees, expenses or taxes) |
% | % | % |
Name |
Portfolio Manager of the Fund Since | Title | ||
Chris
Chung, CFA |
2020 | Managing Director of BlackRock, Inc. | ||
Lisa
O’Connor, CFA |
2020 | Managing Director of BlackRock, Inc. | ||
Greg
Savage, CFA |
2018 | Managing Director of BlackRock, Inc. | ||
Paul
Whitehead |
2023 | Managing Director of BlackRock, Inc. |
Investor A Shares | Institutional Shares | |||
Minimum Initial Investment |
$1,000
for all accounts except:
• $50,
if establishing an Automatic Investment Plan.
• There
is no investment minimum for employer-sponsored retirement plans
(not including SEP IRAs, SIMPLE IRAs or SARSEPs).
• There
is no investment minimum for certain fee-based programs. |
There
is no minimum initial investment for:
• Employer-sponsored
retirement plans (not including SEP IRAs, SIMPLE IRAs or SARSEPs), state
sponsored 529 college savings plans, collective trust funds, investment
companies or other pooled investment vehicles, unaffiliated thrifts and
unaffiliated banks and trust companies, each of which may purchase shares
of the Fund through a Financial Intermediary that has entered into an
agreement with the Fund’s distributor to purchase such shares.
• Clients
of Financial Intermediaries that: (i) charge such clients a fee for
advisory, investment consulting, or similar services or (ii) have
entered into an agreement with the Fund’s distributor to offer
Institutional Shares through a no-load program or investment
platform.
• Clients
investing through a self-directed IRA brokerage account program sponsored
by a retirement plan record-keeper, provided that such program offers only
mutual fund options and that the program maintains an account with the
Fund on an omnibus basis.
$2
million for individuals and “Institutional Investors,” which include, but
are not limited to, endowments, foundations, family offices, local, city,
and state governmental institutions, corporations and insurance company
separate accounts who may purchase shares of the Fund through a Financial
Intermediary that has entered into an agreement with the Fund’s
distributor to purchase such shares.
$1,000
for:
• Clients
investing through Financial Intermediaries that offer such shares on a
platform that charges a transaction based sales commission outside of the
Fund.
• Tax-qualified
accounts for insurance agents that are registered representatives of an
insurance company’s broker-dealer that has entered into an agreement with
the Fund’s distributor to offer Institutional Shares, and the family
members of such persons.
| ||
Minimum Additional Investment | $50 for all accounts (with the exception of certain employer-sponsored retirement plans which may have a lower minimum). | No subsequent minimum. |
(expenses that you pay each year as a percentage of the value of your investment) |
Investor A Shares |
Institutional Shares | ||||||||
Management
Fee1 |
||||||||||
Distribution
and/or Service (12b-1) Fees |
||||||||||
Other
Expenses1,3 |
||||||||||
Administration
Fees1 |
||||||||||
Independent
Expenses3 |
||||||||||
Acquired
Fund Fees and Expenses1,2 |
||||||||||
Total
Annual Fund Operating Expenses2 |
||||||||||
Fee
Waivers and/or Expense Reimbursements1,3 |
( |
( |
||||||||
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements1,3 |
1 | As
described in the “Management of the Funds” section of the Fund’s
prospectus beginning on page 181, BFA and BlackRock Advisors, LLC (“BAL”)
have contractually agreed to reimburse the Fund for Acquired Fund Fees and
Expenses up to a maximum amount equal to the combined Management Fee and
Administration Fee of each share class through June 30, 2025. In addition,
BFA has contractually agreed to waive its management fees by the amount of
investment advisory fees the Fund pays to BFA indirectly through its
investment in money market funds managed by BFA or its affiliates, through
|
2 |
3 | Independent
Expenses consist of the Fund’s allocable portion of the fees and expenses
of the independent trustees of the Trust, counsel to such independent
trustees and the independent registered public accounting firm that
provides audit services to the Fund. BAL and BFA have contractually agreed
to reimburse, or provide offsetting credits to, the Fund for Independent
Expenses through June 30, 2034. After giving effect to such contractual
arrangements, Independent Expenses will be 0.00%. Such contractual
arrangements may not be terminated prior to July 1, 2034 without the
consent of the Board of Trustees of the
Trust. |
1 Year | 3 Years | 5 Years | 10 Years | |||||||||||||
Investor
A Shares |
$ |
$ | $ | $ | ||||||||||||
Institutional
Shares |
$ |
$ | $ | $ |
Years Until Retirement | Equity Funds (Includes REITs) |
Fixed‑Income Funds | ||||||||
45 |
99 | % | 1 | % | ||||||
40 |
99 | % | 1 | % | ||||||
35 |
99 | % | 1 | % | ||||||
30 |
96 | % | 4 | % | ||||||
25 |
89 | % | 11 | % | ||||||
20 |
79 | % | 21 | % | ||||||
15 |
68 | % | 32 | % | ||||||
10 |
56 | % | 44 | % | ||||||
5 |
43 | % | 57 | % | ||||||
0 |
40 | % | 60 | % |
∎ |
Equity
Securities Risk — Stock markets are volatile. The price of
equity securities fluctuates based on changes in a company’s financial
condition and overall market and economic
conditions. |
∎ |
Investments in
Underlying Funds Risk — Because the Fund invests
substantially all of its assets in Underlying Funds, its investment
performance is related to the performance of the Underlying Funds. The
Fund’s net asset value will change with changes in the value of the
Underlying Funds and other securities in which it invests. An investment
in the Fund will entail more direct and indirect costs and expenses than a
direct investment in the Underlying
Funds. |
∎ |
Allocation
Risk — The Fund’s ability to achieve its investment
objective depends upon the Fund’s asset class allocation and the mix of
Underlying Funds. There is a risk that the asset class allocation or the
combination of Underlying Funds may be incorrect in view of actual market
conditions. In addition, the asset allocation or the combination of
Underlying Funds determined by BFA could result in underperformance as
compared to funds with similar investment objectives and
strategies. |
∎ |
Retirement
Income Risk — The Fund does not provide a guarantee that
sufficient capital appreciation will be achieved to provide adequate
income at and through retirement. The Fund also does not ensure that you
will have assets in your account sufficient to cover your retirement
expenses or that you will have enough saved to be able to retire in the
target year identified in the Fund’s name; this will depend on the amount
of money you have invested in the Fund, the length of time you have held
your investment, the returns of the markets over time, the amount you
spend in retirement, and your other assets and income
sources. |
∎ |
Affiliated Fund
Risk — In managing the Fund, BFA will have authority to
select and substitute underlying funds and ETFs. BFA may be subject to
potential conflicts of interest in selecting underlying funds and ETFs
because the fees paid to BFA by some underlying funds and ETFs are higher
than the fees paid by other underlying funds and ETFs. However, BFA is a
fiduciary to the Fund and is legally obligated to act in the Fund’s best
interests when selecting underlying funds and ETFs. If an underlying fund
or ETF holds interests in an affiliated fund, the Fund may be prohibited
from purchasing shares of that underlying fund or
ETF. |
∎ |
Market Risk and
Selection Risk — Market risk is the risk that one or more
markets in which the Fund invests will go down in value, including the
possibility that the markets will go down sharply and unpredictably. The
value of a security or other asset may decline due to changes in general
market conditions, economic trends or events that are not specifically
related to the issuer of the security or other asset, or factors that
affect a particular issuer or issuers, exchange, country, group of
countries, region, market, industry, group of industries, sector or asset
class. Local, regional or global events such as war, acts of terrorism,
the spread of infectious illness or other public health issues like
pandemics or epidemics, recessions, or other events could have a
significant impact on the Fund and its investments. Selection risk is the
risk that the securities selected by Fund management will underperform the
markets, the relevant indices or the securities selected by other funds
with similar investment objectives and investment strategies. This means
you may lose
money. |
∎ |
Risk of
Investing in the United States — Certain changes in the U.S.
economy, such as when the U.S. economy weakens or when its financial
markets decline, may have an adverse effect on the securities to which the
Fund has exposure. |
∎ |
Asset
Class Risk — Securities and other assets or financial
instruments in the underlying index of an Underlying Fund or in an
Underlying Fund’s portfolio may underperform in comparison to the general
financial markets, a particular financial market or other asset
classes. |
∎ |
Authorized
Participant Concentration Risk — Only an authorized
participant may engage in creation or redemption transactions directly
with an ETF, and none of those authorized participants is obligated to
engage in creation and/or redemption transactions. The Underlying Funds
that are ETFs have 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 an ETF and no other authorized participant is able to step
forward to create or redeem, the ETF shares may be more likely to trade at
a premium or discount to net asset value and possibly face trading halts
or delisting. Authorized participant concentration risk may be heightened
for ETFs that invest in securities issued by non‑U.S. issuers or other
securities or instruments that have lower trading
volumes. |
∎ |
Concentration
Risk — To the extent that an underlying index of an
Underlying Fund is concentrated in the securities of companies, a
particular market, industry, group of industries, sector or asset class,
country, region or group of countries, that Underlying Fund may be
adversely affected by the performance of those securities, may be subject
to increased price volatility and may be more susceptible to adverse
economic, market, political or regulatory occurrences affecting that
market, industry, group of industries, sector or asset class, country,
region or group of countries. |
∎ |
Currency
Risk — Because the net asset value of an Underlying Fund
that is an ETF is determined in U.S. dollars, the Underlying Fund’s net
asset value could decline if the currency of a non‑U.S. market in which
the Underlying Fund invests depreciates against the U.S. dollar or if
there are delays or limits on repatriation of such currency. Currency
exchange rates can be very volatile and can change quickly and
unpredictably. As a result, the net asset value of an Underlying Fund that
is an ETF may change quickly and without
warning. |
∎ |
Custody
Risk — Less developed securities markets are more likely to
experience problems with the clearing and settling of trades, as well as
the holding of securities by local banks, agents and
depositories. |
∎ |
Depositary
Receipts Risk — Depositary receipts are generally subject to
the same risks as the foreign securities that they evidence or into which
they may be converted. In addition to investment risks associated with the
underlying issuer, depositary receipts expose the Fund to additional risks
associated with the non‑uniform terms that apply to depositary receipt
programs, credit exposure to the depository bank and to the sponsors and
other parties with whom the depository bank establishes the programs,
currency risk and the risk of an illiquid market for depositary receipts.
The issuers of unsponsored depositary receipts are not obligated to
disclose information that is, in the United States, considered material.
Therefore, there may be less information available regarding these issuers
and there may not be a correlation between such information and the market
value of the depositary receipts. While depositary receipts provide an
alternative to directly purchasing underlying foreign securities in their
respective markets and currencies, they continue to be subject to many of
the risks associated with investing directly in foreign securities,
including political, economic, and currency
risk. |
∎ |
Derivatives
Risk — The Fund’s use of derivatives may increase its costs,
reduce the Fund’s returns and/or increase volatility. Derivatives involve
significant risks,
including: |
∎ |
Emerging
Markets Risk — Emerging markets are riskier than more
developed markets because they tend to develop unevenly and may never
fully develop. Investments in emerging markets may be considered
speculative. Emerging markets are more likely to experience hyperinflation
and currency devaluations, which adversely affect returns to U.S.
investors. In addition, many emerging securities markets have far lower
trading volumes and less liquidity than developed
markets. |
∎ |
Foreign
Securities Risk — Foreign investments often involve special
risks not present in U.S. investments that can increase the chances that
the Fund will lose money. These risks
include: |
∎ |
The
Fund generally holds its foreign securities and cash in foreign banks and
securities depositories, which may be recently organized or new to the
foreign custody business and may be subject to only limited or no
regulatory oversight. |
∎ |
Changes
in foreign currency exchange rates can affect the value of the Fund’s
portfolio. |
∎ |
The
economies of certain foreign markets may not compare favorably with the
economy of the United States with respect to such issues as growth of
gross national product, reinvestment of capital, resources and balance of
payments position. |
∎ |
The
governments of certain countries, or the U.S. Government with respect to
certain countries, may prohibit or impose substantial restrictions through
capital controls and/or sanctions on foreign investments in the capital
markets or certain industries in those countries, which may prohibit or
restrict the ability to own or transfer currency, securities, derivatives
or other assets. |
∎ |
Many
foreign governments do not supervise and regulate stock exchanges, brokers
and the sale of securities to the same extent as does the United States
and may not have laws to protect investors that are comparable to U.S.
securities laws. |
∎ |
Settlement
and clearance procedures in certain foreign markets may result in delays
in payment for or delivery of securities not typically associated with
settlement and clearance of U.S.
investments. |
∎ |
The
Fund’s claims to recover foreign withholding taxes may not be successful,
and if the likelihood of recovery of foreign withholding taxes materially
decreases, due to, for example, a change in tax regulation or approach in
the foreign country, accruals in the Fund’s net asset value for such
refunds may be written down partially or in full, which will adversely
affect the Fund’s net asset
value. |
∎ |
The
European financial markets have recently experienced volatility and
adverse trends due to concerns about economic downturns in, or rising
government debt levels of, several European countries as well as acts of
war in the region. These events may spread to other countries in Europe
and may affect the value and liquidity of certain of the Fund’s
investments. |
∎ |
Geographic
Risk — Some of the companies in which the Fund invests are
located in parts of the world that have historically been prone to natural
disasters, such as earthquakes, tornadoes, volcanic eruptions, droughts,
floods, |
hurricanes
or tsunamis, and are economically sensitive to environmental events. Any
such event may adversely impact the economies of these geographic areas or
business operations of companies in these geographic areas, causing an
adverse impact on the value of the
Fund. |
∎ |
Income Risk
— Income risk is the risk that the Fund’s yield will vary as
short-term securities in its portfolio mature and the proceeds are
reinvested in securities with different interest
rates. |
∎ |
Inflation-Indexed Bonds Risk —
The principal value of an investment is not protected or otherwise
guaranteed by virtue of the Fund’s investments in inflation-indexed
bonds. |
∎ |
Indexing
Investment Risk — The Fund is not actively managed, and BFA
generally does not attempt to take defensive positions under any market
conditions, including declining
markets. |
∎ |
Index-Related
Risk — There is no guarantee that an Underlying Fund’s
investment results will have a high degree of correlation to those of its
underlying index or that the Underlying Fund will achieve its investment
objective. Market disruptions or high volatility, other unusual market
circumstances and regulatory restrictions could have an adverse effect on
an Underlying Fund’s ability to adjust its exposure to the required levels
in order to track its underlying index. Errors in index data, index
computations or the construction of an underlying index in accordance with
its methodology may occur from time to time and may not be identified and
corrected by the index provider for a period of time or at all, which may
have an adverse impact on an Underlying Fund and its shareholders. Unusual
market conditions or other unforeseen circumstances (such as natural
disasters, political unrest or war) may impact the index provider or a
third-party data provider and could cause the index provider to postpone a
scheduled rebalance. This could cause an underlying index to vary from its
normal or expected
composition. |
∎ |
Issuer
Risk — Fund performance depends on the performance of
individual securities to which the Fund has exposure. Changes in the
financial condition or credit rating of an issuer of those securities may
cause the value of the securities to
decline. |
∎ |
Large-Capitalization Companies
Risk — Large-capitalization companies may be less able than
smaller capitalization companies to adapt to changing market conditions.
Large-capitalization companies may be more mature and subject to more
limited growth potential compared with smaller capitalization companies.
During different market cycles, the performance of large-capitalization
companies has trailed the overall performance of the broader securities
markets. |
∎ |
Large
Shareholder and Large-Scale Redemption Risk — Certain
shareholders, including a third-party investor, the Fund’s adviser or an
affiliate of the Fund’s adviser, or another entity, may from time to time
own or manage a substantial amount of Fund shares, or may invest in the
Fund and hold its investment for a limited period of time. There can be no
assurance that any large shareholder or large group of shareholders would
not redeem their investment. Redemptions by large shareholders or a large
group of shareholders could have a significant negative impact on the
Fund. Redemptions of a large number of Fund shares could require the Fund
to dispose of assets to |
meet
the redemption requests, which can accelerate the realization of taxable
income and cause the Fund to make taxable distributions to its
shareholders earlier than the Fund otherwise would have. In addition,
under certain circumstances, non‑redeeming shareholders may be treated as
receiving a disproportionately large taxable distribution during or with
respect to such year. In some circumstances, the Fund may hold a
relatively large proportion of its assets in cash in anticipation of large
redemptions, diluting its investment returns. These large redemptions may
also force the Fund to sell portfolio securities when it might not
otherwise do so, which may negatively impact the Fund’s NAV and increase
the Fund’s brokerage costs and/or accelerate the realization of taxable
income and/or capital gains to shareholders. In addition, large
redemptions can result in the Fund’s current expenses being allocated over
a smaller asset base, which generally results in an increase in the Fund’s
expense ratio. Because large redemptions can adversely affect a portfolio
manager’s ability to implement a fund’s investment strategy, the Fund also
reserves the right to redeem in‑kind, subject to certain
conditions. |
∎ |
Leverage Risk
— Some transactions may give rise to a form of economic
leverage. These transactions may include, among others, derivatives, and
may expose the Fund to greater risk and increase its costs. The use of
leverage may cause the Fund to liquidate portfolio positions when it may
not be advantageous to do so to satisfy its obligations or to meet the
applicable requirements of the Investment Company Act, and the rules
thereunder. Increases and decreases in the value of the Fund’s portfolio
will be magnified when the Fund uses
leverage. |
∎ |
Management
Risk — As an Underlying Fund may not fully replicate its
underlying index, it is subject to the risk that the Underlying Fund’s
investment manager’s investment strategy may not produce the intended
results. |
∎ |
Money Market
Securities Risk — If market conditions improve while the
Fund has invested some or all of its assets in high quality money market
securities, this strategy could result in reducing the potential gain from
the market upswing, thus reducing the Fund’s opportunity to achieve its
investment objective. |
∎ |
Mortgage- and
Asset-Backed Securities Risks — Mortgage- and asset-backed
securities represent interests in “pools” of mortgages or other assets,
including consumer loans or receivables held in trust. Mortgage- and
asset-backed securities are subject to credit, interest rate, prepayment
and extension risks. These securities also are subject to risk of default
on the underlying mortgage or asset, particularly during periods of
economic downturn. Small movements in interest rates (both increases and
decreases) may quickly and significantly reduce the value of certain
mortgage-backed securities. |
∎ |
National Closed
Market Trading Risk — To the extent that the underlying
securities or other instruments held by an Underlying Fund that is an ETF
trade on foreign exchanges or in foreign markets that may be closed when
the securities exchange on which the Underlying Fund’s shares trade is
open, there are likely to be deviations between the current price of such
an underlying security and the last quoted price for the underlying
security (i.e., an Underlying Fund’s quote from the closed foreign
market). The impact of a closed foreign market on an Underlying Fund is
likely to be greater where a large portion of the Underlying Fund’s
underlying securities or other instruments trade on that closed foreign
market or when the foreign market is closed for unscheduled reasons. These
deviations could result in premiums or discounts to one or more of the
Underlying Funds’ net asset values that may be greater than those
experienced by other ETFs. |
∎ |
Passive
Investment Risk — Because BFA does not select individual
companies in the underlying indexes for certain Underlying Funds, those
Underlying Funds may hold securities of companies that present risks that
an investment adviser researching individual securities might seek to
avoid. |
∎ |
Preferred
Securities Risk — Preferred securities may pay fixed or
adjustable rates of return. Preferred securities are subject to
issuer-specific and market risks applicable generally to equity
securities. In addition, a company’s preferred securities generally pay
dividends only after the company makes required payments to holders of its
bonds and other debt. For this reason, the value of preferred securities
will usually react more strongly than bonds and other debt to actual or
perceived changes in the company’s financial condition or prospects.
Preferred securities of smaller companies may be more vulnerable to
adverse developments than preferred securities of larger
companies. |
∎ |
Privatization
Risk — Some countries in which the Fund invests have
privatized, or have begun the process of privatizing, certain entities and
industries. Privatized entities may lose money or be
re‑nationalized. |
∎ |
Real
Estate-Related Securities Risk — The main risk of real
estate-related securities is that the value of the underlying real estate
may go down. Many factors may affect real estate values. These factors
include both the general and local economies, vacancy rates, changes in
rent schedules, tenant bankruptcies, the ability to re‑lease space under
expiring leases on attractive terms, the amount of new construction in a
particular area, the laws and regulations (including zoning, environmental
and tax laws) affecting real estate and the costs of owning, maintaining
and improving real estate. The availability of mortgage financing and
changes in interest rates may also affect real estate values. If the
Fund’s real estate-related investments are concentrated in one geographic
area or in one property type, the Fund will be particularly subject to the
risks associated with that area or property type. Many issuers of real
estate-related securities are highly leveraged, which increases the risk
to holders of such securities. The value of the securities the Fund buys
will not necessarily track the value of the underlying investments of
the |
issuers
of such securities. In addition, certain issuers of real estate-related
securities may have developed or commenced development on properties and
may develop additional properties in the future. Real estate development
involves significant risks in addition to those involved in the ownership
and operation of established properties. Real estate securities may have
limited diversification and are, therefore, subject to risks inherent in
operating and financing a limited number of projects. Real estate
securities are also subject to heavy cash flow dependency and defaults by
borrowers or tenants. |
∎ |
REIT Investment
Risk — Investments in REITs involve unique risks. REITs may
have limited financial resources, may trade less frequently and in limited
volume, may engage in dilutive offerings of securities and may be more
volatile than other securities. REIT issuers may also fail to maintain
their exemptions from investment company registration or fail to qualify
for the “dividends paid deduction” under the Internal Revenue Code, which
allows REITs to reduce their corporate taxable income for dividends paid
to their shareholders. |
∎ |
Representative
Sampling Risk — Representative sampling is a method of
indexing that involves investing in a representative sample of securities
that collectively have a similar investment profile to the index and
resemble the index in terms of risk factors and other key characteristics.
A passively managed
ETF may or may not hold every security in the index. When an ETF
deviates from a full replication indexing strategy to utilize a
representative sampling strategy, the ETF is subject to an increased risk
of tracking error, in that the securities selected in the aggregate for
the ETF may not have an investment profile similar to those of its
index. |
∎ |
Repurchase
Agreements Risk — If the other party to a repurchase
agreement defaults on its obligation under the agreement, the Fund may
suffer delays and incur costs or lose money in exercising its rights under
the agreement. If the seller fails to repurchase the security and the
market value of the security declines, the Fund may lose
money. |
∎ |
Shares of an
ETF May Trade at Prices Other Than Net Asset Value — Shares
of an ETF trade on exchanges at prices at, above or below their most
recent net asset value. The per share net asset value of an ETF is
calculated at the end of each business day and fluctuates with changes in
the market value of the ETF’s holdings since the most recent calculation.
The trading prices of an ETF’s shares fluctuate continuously throughout
trading hours based on market supply and demand rather than net asset
value. The trading prices of an ETF’s shares may deviate significantly
from net asset value during periods of market volatility. Any of these
factors may lead to an ETF’s shares trading at a premium or discount to
net asset value. However, because shares can be created and redeemed in
creation units, which are aggregated blocks of shares that authorized
participants who have entered into agreements with the ETF’s distributor
can purchase or redeem directly from the ETF, at net asset value (unlike
shares of many closed‑end funds, which frequently trade at appreciable
discounts from, and sometimes at premiums to, their net asset values),
large discounts or premiums to the net asset value of an ETF are not
likely to be sustained over the long-term. While the creation/redemption
feature is designed to make it likely that an ETF’s shares normally trade
on exchanges at prices close to the ETF’s next calculated net asset value,
exchange prices are not expected to correlate exactly with an ETF’s net
asset value due to timing reasons as well as market supply and demand
factors. In addition, disruptions to creations and redemptions or the
existence of extreme market volatility may result in trading prices that
differ significantly from net asset value. If a shareholder purchases at a
time when the market price is at a premium to the net asset value or sells
at a time when the market price is at a discount to the net asset value,
the shareholder may sustain losses. The use of cash creations and
redemptions may also cause the ETFs’ shares to trade in the market at
greater bid‑ask spreads or greater premiums or discounts to the ETFs’
NAV. |
∎ |
Small and
Mid-Capitalization Company Risk — Companies with small or
mid‑size market capitalizations will normally have more limited product
lines, markets and financial resources and will be dependent upon a more
limited management group than larger capitalized companies. In addition,
it is more difficult to get information on smaller companies, which tend
to be less well known, have shorter operating histories, do not have
significant ownership by large investors and are followed by relatively
few securities analysts. |
∎ |
Structured
Securities Risk — Because structured securities of the type
in which the Fund may invest typically involve no credit enhancement,
their credit risk generally will be equivalent to that of the underlying
instruments, index or reference obligation and will also be subject to
counterparty risk. The Fund may have the right to receive payments only
from the structured security, and generally does not have direct rights
against the issuer or the entity that sold the assets to be securitized.
In addition to the general risks associated with debt securities discussed
herein, structured securities carry additional risks, including, but not
limited to: the possibility that distributions from collateral securities
will not be adequate to make interest or other payments; the quality of
the collateral may decline in value or default; and the possibility that
the structured securities are subordinate to other classes. The Fund is
permitted to invest in a class of structured securities that is either
subordinated or unsubordinated to the right of payment of another class.
Subordinated structured securities typically have higher yields and
present greater risks than unsubordinated structured securities.
Structured securities are typically sold in private placement
transactions, and there currently is no active trading market for
structured securities. Structured securities are based upon the movement
of one or more factors, including currency exchange rates, interest rates,
reference bonds and stock indices, and changes in interest rates and
impact of these factors may cause significant price fluctuations.
Additionally, changes in the reference instrument or security may cause
the interest rate on the |
structured
security to be reduced to zero. Certain issuers of such structured
securities may be deemed to be “investment companies” as defined in the
Investment Company Act. As a result, the Fund’s investment in such
securities may be limited by certain investment restrictions contained in
the Investment Company Act. |
∎ |
Tax
Risk — Although the Fund intends to invest primarily in
securities the interest on which, in the opinion of counsel to the issuer,
is exempt from federal income tax, the IRS has generally not ruled on the
taxability of the securities. An assertion by the IRS that a portfolio
security is not exempt from Federal income tax (contrary to indications
from the issuer) could affect the Fund’s and shareholder’s income tax
liability for the current or past years and could create liability for
information reporting penalties. In addition, an IRS assertion of
taxability may impair the liquidity and the fair market value of the
securities. |
∎ |
Tracking Error
Risk — Tracking error is the divergence of an Underlying
Fund’s performance from that of its underlying index. Tracking error may
occur because of differences between the securities and other instruments
held in an Underlying Fund’s portfolio and those included in its
underlying index, pricing differences (including, as applicable,
differences between a security’s price at the local market close and an
Underlying Fund’s valuation of a security at the time of calculation of an
Underlying Fund’s NAV), differences in transaction costs, an Underlying
Fund’s holding of uninvested cash, differences in timing of the accrual of
or the valuation of dividends or other distributions, interest, the
requirements to maintain pass-through tax treatment, portfolio
transactions carried out to minimize the distribution of capital gains to
shareholders, changes to an underlying index and the cost to an Underlying
Fund of complying with various new or existing regulatory requirements.
These risks may be heightened during times of increased market volatility
or other unusual market conditions. In addition, tracking error may result
because an Underlying Fund incurs fees and expenses, while its underlying
index does not. |
∎ |
Treasury
Obligations Risk — Direct obligations of the U.S. Treasury
have historically involved little risk of loss of principal if held to
maturity. However, due to fluctuations in interest rates, the market value
of such securities may vary during the period shareholders own shares of
the Fund. In addition, notwithstanding that U.S. Treasury obligations are
backed by the full faith and credit of the United States, circumstances
could arise that could prevent the timely payment of interest or
principal, such as reaching the legislative “debt ceiling.” Such
non‑payment could result in losses to the Fund and substantial negative
consequences for the U.S. economy and the global financial
system. |
∎ |
U.S. Government
Issuer Risk — Treasury obligations may differ in their
interest rates, maturities, times of issuance and other characteristics.
Obligations of U.S. Government agencies and authorities are supported by
varying degrees of credit but generally are not backed by the full faith
and credit of the U.S. Government. No assurance can be given that the U.S.
Government will provide financial support to its agencies and authorities
if it is not obligated by law to do
so. |
∎ |
Valuation Risk
— The price an Underlying Fund could receive upon the sale
of a security or other asset may differ from the Underlying Fund’s
valuation of the security or other asset and from the value used by its
underlying index, particularly for securities or other assets that trade
in low volume or volatile markets or that are valued using a fair value
methodology as a result of trade suspensions or for other reasons. In
addition, the value of the securities or other assets in an Underlying
Fund’s portfolio may change on days or during time periods when
shareholders will not be able to purchase or sell the Underlying Fund’s
shares. Authorized Participants who purchase or redeem Underlying Fund
shares on days when an Underlying Fund is holding fair-valued securities
may receive fewer or more shares, or lower or higher redemption proceeds,
than they would have received had the securities not been fair valued or
been valued using a different methodology. The ability to value
investments may be impacted by technological issues or errors by pricing
services or other third-party service
providers. |
∎ |
Variable and
Floating Rate Instrument Risk — Variable and floating rate
securities provide for periodic adjustment in the interest rate paid on
the securities. These securities may be subject to greater illiquidity
risk than other fixed income securities, meaning the absence of an active
market for these securities could make it difficult for the Fund to
dispose of them at any given
time. |
|
1 Year | Since Inception ( |
||||||
LifePath
Index 2065 Fund — Investor A Shares |
||||||||
Return
Before Taxes |
% | % | ||||||
Return
After Taxes on Distributions |
% | % | ||||||
Return
After Taxes on Distributions and Sale of Fund Shares |
% | % | ||||||
LifePath
Index 2065 Fund — Institutional Shares |
||||||||
Return
Before Taxes |
% | % | ||||||
LifePath
Index 2065 Fund Custom Benchmark
(Reflects
no deduction for fees, expenses or taxes) |
% | % | ||||||
Russell
1000® Index
(Reflects
no deduction for fees, expenses or taxes) |
% | % |
Name |
Portfolio Manager of the Fund Since | Title | ||
Chris
Chung, CFA |
2020 | Managing Director of BlackRock, Inc. | ||
Lisa
O’Connor, CFA |
2020 | Managing Director of BlackRock, Inc. | ||
Greg
Savage, CFA |
2019 | Managing Director of BlackRock, Inc. | ||
Paul
Whitehead |
2023 | Managing Director of BlackRock, Inc. |
Investor A Shares | Institutional Shares | |||
Minimum Initial Investment |
$1,000
for all accounts except:
• $50,
if establishing an Automatic Investment Plan.
• There
is no investment minimum for employer-sponsored retirement plans
(not including SEP IRAs, SIMPLE IRAs or SARSEPs).
• There
is no investment minimum for certain fee‑based programs. |
There
is no minimum initial investment for:
• Employer-sponsored
retirement plans (not including SEP IRAs, SIMPLE IRAs or SARSEPs), state
sponsored 529 college savings plans, collective trust funds, investment
companies or other pooled investment vehicles, unaffiliated thrifts and
unaffiliated banks and trust companies, each of which may purchase shares
of the Fund through a Financial Intermediary that has entered into an
agreement with the Fund’s distributor to purchase such shares.
• Clients
of Financial Intermediaries that: (i) charge such clients a fee for
advisory, investment consulting, or similar services or (ii) have
entered into an agreement with the Fund’s distributor to offer
Institutional Shares through a no‑load program or investment
platform.
• Clients
investing through a self-directed IRA brokerage account program sponsored
by a retirement plan record-keeper, provided that such program offers only
mutual fund options and that the program maintains an account with the
Fund on an omnibus basis.
$2 million
for individuals and “Institutional Investors,” which include, but are not
limited to, endowments, foundations, family offices, local, city, and
state governmental institutions, corporations and insurance company
separate accounts who may purchase shares of the Fund through a Financial
Intermediary that has entered into an agreement with the Fund’s
distributor to purchase such shares.
$1,000
for:
• Clients
investing through Financial Intermediaries that offer such shares on a
platform that charges a transaction based sales commission outside of the
Fund.
• Tax‑qualified
accounts for insurance agents that are registered representatives of an
insurance company’s broker-dealer that has entered into an agreement with
the Fund’s distributor to offer Institutional Shares, and the family
members of such persons.
| ||
Minimum Additional Investment | $50 for all accounts (with the exception of certain employer-sponsored retirement plans which may have a lower minimum). | No subsequent minimum. |
∎ |
LifePath
Index Retirement Fund seeks to provide for retirement outcomes based on
quantitatively measured risk. In pursuit of this objective, LifePath Index
Retirement Fund will be broadly diversified across global asset classes.
|
∎ |
Each
of LifePath Index 2025 Fund, LifePath Index 2030 Fund, LifePath Index 2035
Fund, LifePath Index 2040 Fund, LifePath Index 2045 Fund, LifePath Index
2050 Fund, LifePath Index 2055 Fund, LifePath Index 2060 Fund and LifePath
Index 2065 Fund seeks to provide for retirement outcomes based on
quantitatively measured risk. In pursuit of this objective, each Fund will
be broadly diversified across global asset classes, with asset allocations
becoming more conservative over time. |
∎ |
The
Funds’ investment strategies derive from the risk tolerance of average
investors with a particular time horizon. |
∎ |
The
Funds’ time horizons are based on the year in their name, except for
LifePath Index Retirement Fund, which is designed for investors who are
currently withdrawing, or plan in the near future to begin withdrawing, a
substantial portion of their investment. |
∎ |
Borrowing — Each Fund may
borrow up to the limits set forth under the Investment Company Act of
1940, as amended (the “Investment Company Act”), the rules and regulations
thereunder and any applicable exemptive relief. |
∎ |
Illiquid
Investments — Each Fund may invest up to an aggregate
amount of 15% of its net assets in illiquid investments. An illiquid
investment is any investment that the Fund reasonably expects cannot be
sold or disposed of in current market conditions in seven calendar days or
less without the sale or disposition significantly changing the market
value of the investment. |
∎ |
Securities
Lending — Each Fund may lend securities with a value up
to 331⁄3% of its total assets to financial
institutions that provide cash or securities issued or guaranteed by the
U.S. Government as collateral. |
∎ |
Short-Term
Securities — Each Fund may invest in money market
securities or commercial paper. |
∎ |
U.S. Government
Obligations — Each Fund may invest in debt of the U.S.
Government. There are no restrictions on the maturity of the debt
securities in which a Fund may invest. |
ABOUT THE PORTFOLIO MANAGEMENT TEAM OF THE FUNDS |
The Funds are managed by a team of financial professionals. Chris Chung, CFA, Lisa O’Connor, CFA, Greg Savage, CFA, and Paul Whitehead are the portfolio managers and are jointly and primarily responsible for the day‑to‑day management of each Fund. Please see “Management of the Funds — Portfolio Managers” for additional information about the portfolio management team. |
LifePath Index Retirement Fund |
LifePath Index 2025 Fund |
LifePath Index 2030 Fund |
LifePath Index 2035 Fund |
LifePath Index 2040 Fund |
||||||||||||||||
CAPITAL
GROWTH |
||||||||||||||||||||
Large
Cap Index Master Portfolio |
23.39% | 25.19% | 32.90% | 39.69% | 46.27% | |||||||||||||||
Master
Small Cap Index Series |
2.34% | 2.41% | 2.52% | 2.62% | 2.74% | |||||||||||||||
iShares
Core MSCI Total International Stock ETF |
12.84% | 13.85% | 18.50% | 22.58% | 26.48% | |||||||||||||||
iShares
Developed Real Estate Index Fund |
2.23% | 2.25% | 2.59% | 3.19% | 3.78% | |||||||||||||||
CAPITAL
GROWTH AND INCOME |
||||||||||||||||||||
iShares
TIPS Bond ETF |
7.85% | 7.67% | 6.81% | 5.69% | 4.28% | |||||||||||||||
iShares
U.S. Intermediate Credit Bond Index Fund |
9.49% | 10.14% | 6.85% | 4.48% | 2.43% | |||||||||||||||
iShares
U.S. Long Credit Bond Index Fund |
2.05% | 2.26% | 3.89% | 3.99% | 3.83% | |||||||||||||||
iShares
U.S. Securitized Bond Index Fund |
14.58% | 13.92% | 10.51% | 7.48% | 4.74% | |||||||||||||||
iShares
U.S. Long Government Bond Index Fund |
6.07% | 6.66% | 5.72% | 4.14% | 2.67% | |||||||||||||||
iShares
U.S. Intermediate Government Bond Index Fund |
18.97% | 15.46% | 9.53% | 5.97% | 2.65% | |||||||||||||||
INCOME |
||||||||||||||||||||
BlackRock
Cash Funds: Treasury |
0.19% | 0.19% | 0.18% | 0.17% | 0.13% | |||||||||||||||
LifePath
Index 2045 Fund |
LifePath Index 2050 Fund |
LifePath Index 2055 Fund |
LifePath Index 2060 Fund |
LifePath Index 2065 Fund |
||||||||||||||||
CAPITAL
GROWTH |
||||||||||||||||||||
Large
Cap Index Master Portfolio |
52.11% | 56.25% | 58.03% | 58.21% | 58.03% | |||||||||||||||
Master
Small Cap Index Series |
2.76% | 2.86% | 2.93% | 2.79% | 2.88% | |||||||||||||||
iShares
Core MSCI Total International Stock ETF |
29.97% | 32.47% | 33.56% | 33.55% | 33.58% | |||||||||||||||
iShares
Developed Real Estate Index Fund |
4.29% | 4.30% | 4.28% | 4.26% | 4.29% |
LifePath
Index 2045 Fund |
LifePath Index 2050 Fund |
LifePath Index 2055 Fund |
LifePath Index 2060 Fund |
LifePath Index 2065 Fund |
||||||||||||||||
CAPITAL
GROWTH AND INCOME |
||||||||||||||||||||
iShares
TIPS Bond ETF |
2.68% | 1.11% | 0.27% | 0.15% | 0.12% | |||||||||||||||
iShares
U.S. Intermediate Credit Bond Index Fund |
0.39% | 0.00% | 0.00% | 0.00% | 0.00% | |||||||||||||||
iShares
U.S. Long Credit Bond Index Fund |
4.06% | 2.71% | 0.71% | 0.85% | 0.88% | |||||||||||||||
iShares
U.S. Securitized Bond Index Fund |
2.33% | 0.00% | 0.00% | 0.00% | 0.00% | |||||||||||||||
iShares
U.S. Long Government Bond Index Fund |
0.94% | 0.11% | 0.00% | 0.00% | 0.00% | |||||||||||||||
iShares
U.S. Intermediate Government Bond Index Fund |
0.29% | 0.00% | 0.00% | 0.00% | 0.00% | |||||||||||||||
INCOME |
||||||||||||||||||||
BlackRock
Cash Funds: Treasury |
0.19% | 0.19% | 0.22% | 0.19% | 0.22% |
∎ |
Affiliated Fund
Risk — In managing the Fund, BFA will have authority to
select and substitute underlying funds and ETFs. BFA may be subject to
potential conflicts of interest in selecting underlying funds and ETFs
because the fees paid to BFA by some underlying funds and ETFs are higher
than the fees paid by other underlying funds and ETFs. However, BFA is a
fiduciary to the Fund and is legally obligated to act in the Fund’s best
interests when selecting underlying funds and ETFs. If an underlying fund
or ETF holds interests in an affiliated fund, the Fund may be prohibited
from purchasing shares of that underlying fund or ETF.
|
∎ |
Allocation
Risk — The Fund’s ability to achieve its investment
objective depends upon the Fund’s asset class allocation and the mix of
Underlying Funds. There is a risk that the asset class allocation or the
combination of Underlying Funds may be incorrect in view of actual market
conditions. In addition, there is no guarantee that the Underlying Funds
will achieve their investment objectives, and the Underlying Funds’
performance may be lower than the performance of the indexes whose
performance they were designed to match. The Underlying Funds may change
their investment objectives or policies without the approval of the Fund.
If an Underlying Fund were to change its investment objective or policies,
the Fund might be forced to withdraw its investment from the Underlying
Fund at a disadvantageous time and price. In addition, the asset
allocation or the combination of Underlying Funds determined by BFA could
result in underperformance as compared to funds with similar investment
objectives and strategies. |
∎ |
Debt Securities
Risk — Debt securities, such as bonds, involve risks, such
as credit risk, interest rate risk, extension risk, and prepayment risk,
each of which are described in further detail below:
|
∎ |
Equity
Securities Risk — Common and preferred stocks represent
equity ownership in a company. Stock markets are volatile. The price of
equity securities will fluctuate and can decline and reduce the value of a
portfolio investing in equities. The value of equity securities purchased
by the Fund could decline if the financial condition of the companies the
Fund invests in declines or if overall market and economic conditions
deteriorate. The value of equity securities may also decline due to
factors that affect a particular industry or industries, such as labor
shortages or an increase in production costs and competitive conditions
within an industry. In addition, the value may decline due to general
market conditions that are not specifically related to a company or
industry, such as real or perceived adverse economic conditions, changes
in the general outlook for corporate earnings, changes in inflation,
interest or currency rates or generally adverse investor sentiment.
|
∎ |
Investments in
Underlying Funds Risk — The Fund invests substantially all
of its assets in Underlying Funds, so the Fund’s investment performance is
directly related to the performance of the Underlying Funds. The Fund’s
net asset value will change with changes in the value of the Underlying
Funds and other securities in which it invests. An investment in the Fund
will entail more direct and indirect costs and expenses than a direct
investment in the Underlying Funds. For example, the Fund indirectly pays
a portion of the expenses (including operating expenses and management
fees) incurred by the Underlying Funds. Additionally, in managing the
Fund, BFA will have the authority to select and substitute Underlying
Funds and BFA may be subject to potential conflicts of interest in
selecting Underlying Funds because the fees paid to BFA or its affiliates
by some Underlying Funds are higher than the fees paid by other Underlying
Funds. |
∎ |
Market Risk and
Selection Risk — Market risk is the risk that one or more
markets in which the Fund invests will go down in value, including the
possibility that the markets will go down sharply and unpredictably. The
value of a security or other asset may decline due to changes in general
market conditions, economic trends or events that are not specifically
related to the issuer of the security or other asset, or factors that
affect a particular issuer or issuers, exchange, country, group of
countries, region, market, industry, group of industries, sector or asset
class. Local, regional or global events such as war, acts of terrorism,
the spread of infectious illness or other public health issues like
pandemics or epidemics, recessions, or other events could have a
significant impact on the Fund and its investments. Selection risk is the
risk that the securities selected by Fund management will underperform the
markets, the relevant indices or the securities selected by other funds
with similar investment objectives and investment strategies. This means
you may lose money. |
∎ |
Retirement
Income Risk — The Fund does not provide a guarantee that
sufficient capital appreciation will be achieved to provide adequate
income at and through retirement. The Fund also does not ensure that you
will have assets in your account sufficient to cover your retirement
expenses or that you will have enough saved to be able to retire in the
target year identified in the Fund’s name, if applicable; this will depend
on the amount of money you have invested in the Fund, the length of time
you have held your investment, the returns of the markets over time, the
amount you spend in retirement, and your other assets and income sources.
|
∎ |
Risk of
Investing in the United States — A decrease in imports or
exports, changes in trade regulations, inflation and/or an economic
recession in the United States may have a material adverse effect on the
U.S. economy and the securities listed on U.S. exchanges. Proposed and
adopted policy and legislative changes in the United States are changing
many aspects of financial, commercial, public health, environmental, and
other regulation and may have a significant effect on U.S. markets
generally, as well as on the value of certain securities. Governmental
agencies project that the United States will continue to maintain elevated
public debt levels for the foreseeable future. Although elevated debt
levels do not necessarily indicate or cause economic problems, elevated
public debt service costs may constrain future economic growth.
|
∎ |
Asset
Class Risk — The securities and
other assets in the Underlying Index or in an Underlying 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 an
Underlying 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 an ETF, and none of those authorized participants is obligated to
engage in creation and/or redemption transactions. The Underlying Funds
that are ETFs have 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 an ETF and no other authorized participant is able to step
forward to create or redeem, the ETF 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
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.
|
∎ |
Concentration
Risk — To the extent that an underlying index of an
Underlying Fund is concentrated in the securities of companies, a
particular market, industry, group of industries, sector or asset class,
country, region or group of countries, that Underlying Fund may be
adversely affected by the performance of those securities, may be subject
to increased price volatility and may be more susceptible to adverse
economic, market, political or regulatory occurrences affecting that
market, industry, group of industries, sector or asset class, country,
region or group of countries. |
∎ |
Currency
Risk — Because the net asset value of an Underlying Fund
that is an ETF is determined in U.S. dollars, the Underlying Fund’s net
asset value could decline if the currency of a non‑U.S. market in which
the Underlying Fund invests depreciates against the U.S. dollar or if
there are delays or limits on repatriation of such currency. Currency
exchange rates can be very volatile and can change quickly and
unpredictably. As a result, the net asset value of an Underlying Fund that
is an ETF may change quickly and without warning.
|
∎ |
Custody
Risk — Custody risk refers to the risks inherent in the
process of clearing and settling trades, as well as the holding of
securities by local banks, agents and depositories. Low trading volumes
and volatile prices in less developed markets may make trades harder to
complete and settle, and governments or trade groups may compel local
agents to hold securities in designated depositories that may not be
subject to independent evaluation. Local agents are held only to the
standards of care of their local markets. In general, the less developed a
country’s securities markets are, the higher the degree of custody risk.
|
∎ |
Depositary
Receipts Risk — Depositary receipts are generally subject to
the same risks as the foreign securities that they evidence or into which
they may be converted. In addition to investment risks associated with the
underlying issuer, depositary receipts expose the Fund to additional risks
associated with the non‑uniform terms that apply to depositary receipt
programs, credit exposure to the depository bank and to the sponsors and
other parties with whom the depository bank establishes the programs,
currency risk and the risk of an illiquid market for depositary receipts.
The issuers of unsponsored depositary receipts are not obligated to
disclose information that is, in the United States, considered material.
Therefore, there may be less information available regarding these issuers
and there may not be a correlation between such information and the market
value of the depositary receipts. While depositary receipts provide an
alternative to directly purchasing underlying foreign securities in their
respective markets and currencies, they continue to be subject to many of
the risks associated with investing directly in foreign securities,
including political, economic, and currency risk.
|
∎ |
Derivatives
Risk — The Fund’s use of derivatives may increase its costs,
reduce the Fund’s returns and/or increase volatility. Derivatives involve
significant risks, including: |
∎ |
Emerging
Markets Risk — The risks of foreign investments are usually
much greater for emerging markets. Investments in emerging markets may be
considered speculative. Emerging markets may include those in countries
considered emerging or developing by the World Bank, the International
Finance Corporation or the United Nations. Emerging markets are riskier
than more developed markets because they tend to develop unevenly and may
never fully develop. They are more likely to experience hyperinflation and
currency devaluations, which adversely affect returns to U.S. investors.
In addition, many emerging markets have far lower trading volumes and less
liquidity than developed markets. Since these markets are often small,
they may be more likely to suffer sharp and frequent price changes or
long-term price depression because of adverse publicity, investor
perceptions or the actions of a few large investors. In addition,
traditional measures of investment value used in the United States, such
as price to earnings ratios, may not apply to certain small markets. Also,
there may be less publicly available information about issuers in emerging
markets than would be available about issuers in more developed capital
markets, and such |
issuers
may not be subject to accounting, auditing and financial reporting
standards and requirements comparable to those to which U.S. companies are
subject. |
∎ |
Foreign
Securities Risk — Securities traded in foreign markets have
often (though not always) performed differently from securities traded in
the United States. However, such investments often involve special risks
not present in U.S. investments that can increase the chances that the
Fund will lose money. In particular, the Fund is subject to the risk that
because there may be fewer investors on foreign exchanges and a smaller
number of securities traded each day, it may be more difficult for the
Fund to buy and sell securities on those exchanges. In addition, prices of
foreign securities may go up and down more than prices of securities
traded in the United States. |
∎ |
Geographic
Risk — Some of the companies in which the Fund invests are
located in parts of the world that have historically been prone to natural
disasters, such as earthquakes, tornadoes, volcanic eruptions, droughts,
floods, hurricanes or tsunamis, and are economically sensitive to
environmental events. Any such event may adversely impact the economies of
these geographic areas or business operations of companies in these
geographic areas, causing an adverse impact on the value of the Fund.
|
∎ |
Income
Risk — The Fund’s yield will vary as the short-term
securities in its portfolio mature and the proceeds are reinvested in
securities with different interest rates. |
∎ |
Indexing
Investment Risk — The Fund is not actively managed and may
be affected by a general decline in market segments related to the
Underlying Index. The Fund invests in securities included in, or
representative of, the Underlying Index, regardless of their investment
merits. BFA generally does not attempt to invest the Fund’s assets in
defensive positions under any market conditions, including declining
markets. |
∎ |
Index-Related
Risk — An Underlying Fund may seek to achieve a return that
corresponds generally to the price and yield performance, before fees and
expenses, of the applicable Underlying Index as published by its index
provider. There is no assurance that an index provider or any agents that
may act on its behalf will compile an Underlying Index accurately, or that
an Underlying Index will be determined, composed or calculated accurately.
While the index providers provide descriptions of what the applicable
Underlying Index is designed to achieve, neither the index providers nor
their agents provide any warranty or accept any liability in relation to
the quality, accuracy or completeness of an Underlying Index or its
related data, and they do not guarantee that an Underlying Index will be
in line with its index provider’s methodology. BFA does not provide any
warranty or guarantee against an index provider’s or any agent’s errors.
Errors in respect of the quality, accuracy and completeness of the data
used to compile an Underlying Index may occur from time to time and may
not be identified and corrected by an index provider for a period of time
or at all, particularly where the indices are less commonly used as
benchmarks by funds or managers. Such errors may negatively or positively
impact the Underlying Fund and its shareholders. For example, during a
period where an Underlying Index contains incorrect constituents, an
Underlying Fund would have market exposure to such constituents and would
be underexposed to the Underlying Index’s other constituents. Shareholders
should understand that any gains from index provider errors will be kept
by the Underlying Fund and its shareholders and any losses or costs
resulting from index provider errors will be borne by the Underlying Fund
and its shareholders. Unusual market conditions may cause an index
provider to postpone a scheduled rebalance, which could cause an
Underlying Index to vary from its normal or expected composition. The
postponement of a scheduled rebalance in time of market volatility could
mean that constituents that would otherwise be removed at rebalance due to
changes in market capitalizations, issuer credit ratings, or other reasons
may remain, causing the performance and constituents of an Underlying
Index to vary from those expected under normal conditions. Apart from
scheduled rebalances, an index provider or its agents may carry out
additional ad hoc rebalances to an Underlying Index due to unusual market
conditions or in order, for example, to correct an error in the selection
of index constituents. When an Underlying Index is rebalanced and the
Underlying Fund in turn rebalances its portfolio to attempt to increase
the correlation between the Underlying Fund’s portfolio and the Underlying
Index, any transaction costs and market exposure arising from such
portfolio rebalancing will be borne directly by the Underlying Fund and
its shareholders. Therefore, errors and additional ad hoc rebalances
carried out by an index provider or its agents to an Underlying Index may
increase the costs to and the tracking error risk of an Underlying Fund.
|
∎ |
Inflation-Indexed Bonds Risk —
The principal value of an investment in the Fund is not protected or
otherwise guaranteed by virtue of the Fund’s investments in
inflation-indexed bonds. Inflation-indexed bonds are fixed-income
securities whose principal value is periodically adjusted according to the
rate of inflation. If the index measuring inflation falls, the principal
value of inflation-indexed bonds will be adjusted downward, and
consequently the interest payable on these securities (calculated with
respect to a smaller principal amount) will be reduced. The value of
inflation-indexed bonds is expected to change in response to changes in
real interest rates. Real interest rates are tied to the relationship
between nominal interest rates and inflation expectations. If nominal
interest rates increase at a faster rate than expected inflation, real
interest rates may rise, leading to a decrease in value of
inflation-indexed bonds. Short-term increases in inflation may lead to a
decline in value. Any increase in the principal amount of an
inflation-indexed bond will be considered taxable ordinary income, even
though investors do not receive their principal until maturity. Periodic
adjustments for inflation to the principal amount of an inflation-indexed
|
bond
may give rise to original issue discount, which will be includable in the
Fund’s gross income. Due to original issue discount, the Fund may be
required to make annual distributions to shareholders that exceed the cash
received, which may cause the Fund to liquidate certain investments when
it is not advantageous to do so. Also, if the principal value of an
inflation-indexed bond is adjusted downward due to deflation, amounts
previously distributed in the taxable year may be characterized in some
circumstances as a return of capital. |
∎ |
Issuer
Risk — The performance of the Fund depends on the
performance of individual securities to which the Fund has exposure. Any
issuer of these securities may perform poorly, causing the value of its
securities to decline. Poor performance may be caused by poor management
decisions, competitive pressures, changes in technology, expiration of
patent protection, disruptions in supply, labor problems or shortages,
corporate restructurings, fraudulent disclosures, credit deterioration of
the issuer or other factors. Issuers may, in times of distress or at their
own discretion, decide to reduce or eliminate dividends, which may also
cause their stock prices to decline. |
∎ |
Large-Capitalization Companies
Risk — Large-capitalization companies may be less able than
smaller capitalization companies to adapt to changing market conditions.
Large-capitalization companies may be more mature and subject to more
limited growth potential compared with smaller capitalization companies.
During different market cycles, the performance of large-capitalization
companies has trailed the overall performance of the broader securities
markets. |
∎ |
Large
Shareholder and Large-Scale Redemption Risk — Certain
shareholders, including a third-party investor, the Fund’s adviser or an
affiliate of the Fund’s adviser, or another entity, may from time to time
own or manage a substantial amount of Fund shares, or may invest in the
Fund and hold its investment for a limited period of time. There can be no
assurance that any large shareholder or large group of shareholders would
not redeem their investment. Redemptions by large shareholders or a large
group of shareholders could have a significant negative impact on the
Fund. Redemptions of a large number of Fund shares could require the Fund
to dispose of assets to meet the redemption requests, which can accelerate
the realization of taxable income and cause the Fund to make taxable
distributions to its shareholders earlier than the Fund otherwise would
have. In addition, under certain circumstances, non‑redeeming shareholders
may be treated as receiving a disproportionately large taxable
distribution during or with respect to such year. In some circumstances,
the Fund may hold a relatively large proportion of its assets in cash in
anticipation of large redemptions, diluting its investment returns. These
large redemptions may also force the Fund to sell portfolio securities
when it might not otherwise do so, which may negatively impact the Fund’s
NAV and increase the Fund’s brokerage costs and/or accelerate the
realization of taxable income and/or capital gains to shareholders. In
addition, large redemptions can result in the Fund’s current expenses
being allocated over a smaller asset base, which generally results in an
increase in the Fund’s expense ratio. Because large redemptions can
adversely affect a portfolio manager’s ability to implement a fund’s
investment strategy, the Fund also reserves the right to redeem in‑kind,
subject to certain conditions. |
∎ |
Leverage Risk
— Some transactions may give rise to a form of economic
leverage. These transactions may include, among others, derivatives, and
may expose the Fund to greater risk and increase its costs. As an open-end
investment company registered with the SEC, the Fund is subject to the
federal securities laws, including the Investment Company Act and the
rules thereunder. Under Rule 18f-4 under the Investment Company Act, among
other things, the Fund must either use derivatives in a limited manner or
comply with an outer limit on fund leverage risk based on value-at-risk.
The use of leverage may cause the Fund to liquidate portfolio positions
when it may not be advantageous to do so to satisfy its obligations or to
meet the applicable requirements of the Investment Company Act and the
rules thereunder. Increases and decreases in the value of the Fund’s
portfolio will be magnified when the Fund uses leverage.
|
∎ |
Management
Risk — An Underlying Fund may not fully replicate its
underlying index and may hold securities not included in its underlying
index. As a result, an Underlying Fund is subject to the risk that its
investment manager’s investment strategy, the implementation of which is
subject to a number of constraints, may not produce the intended results.
|
∎ |
Money Market
Securities Risk — If market conditions improve while the
Fund has invested some or all of its assets in high quality money market
securities, this strategy could result in reducing the potential gain from
the market upswing, thus reducing the Fund’s opportunity to achieve its
investment objective. |
∎ |
Mortgage- and
Asset-Backed Securities Risks — Mortgage-backed securities
(residential and commercial) and asset-backed securities represent
interests in “pools” of mortgages or other assets, including consumer
loans or receivables held in trust. Although asset-backed and CMBS
generally experience less prepayment than residential mortgage-backed
securities, mortgage-backed and asset-backed securities, like traditional
fixed-income securities, are subject to credit, interest rate, prepayment
and extension risks. |
∎ |
National Closed
Market Trading Risk — To the extent that the underlying
securities or other instruments held by an Underlying Fund that is an ETF
trade on foreign exchanges or in foreign markets that may be closed when
the securities exchange on which the Underlying Fund’s shares trade is
open, there are likely to be deviations between the current price of such
an underlying security and the last quoted price for the underlying
security (i.e., an Underlying Fund’s quote from the closed foreign
market). The impact of a closed foreign market on an Underlying Fund is
likely to be greater where a large portion of the Underlying Fund’s
underlying securities or other instruments trade on that closed foreign
market or when the foreign market is closed for unscheduled reasons. These
deviations could result in premiums or discounts to the Underlying Fund’s
NAV that may be greater than those experienced by other ETFs.
|
∎ |
Passive
Investment Risk — Because BFA does not select individual
companies in the underlying indexes for certain Underlying Funds, those
Underlying Funds may hold securities of companies that present risks that
an investment adviser researching individual securities might seek to
avoid. |
∎ |
Preferred
Securities Risk — Preferred securities may pay fixed or
adjustable rates of return. Preferred securities are subject to
issuer-specific and market risks applicable generally to equity
securities. In addition, a company’s preferred securities generally pay
dividends only after the company makes required payments to holders of its
bonds and other debt. For this reason, the value of preferred securities
will usually react more strongly than bonds and other debt to actual or
perceived changes in the company’s financial condition or prospects.
Preferred securities of smaller companies may be more vulnerable to
adverse developments than preferred securities of larger companies.
|
∎ |
Privatization Risk
— Some countries in which the Fund invests have privatized,
or have begun the process of privatizing, certain entities and industries.
Newly privatized companies may face strong competition from
government-sponsored competitors that have not been privatized. In some
instances, investors in newly privatized entities have suffered losses due
to the inability of the newly privatized entities to adjust quickly to a
competitive environment or changing regulatory and legal standards or, in
some cases, due to re‑nationalization of such privatized entities. There
is no assurance that similar losses will not recur.
|
∎ |
Real
Estate-Related Securities Risk — The main risk of real
estate-related securities is that the value of the underlying real estate
may go down. Many factors may affect real estate values. These factors
include both the general and local economies, vacancy rates, changes in
rent schedules, tenant bankruptcies, the ability to re‑lease
|
space
under expiring leases on attractive terms, the amount of new construction
in a particular area, the laws and regulations (including zoning,
environmental and tax laws) affecting real estate and the costs of owning,
maintaining and improving real estate. The availability of mortgage
financing and changes in interest rates may also affect real estate
values. If the Fund’s real estate-related investments are concentrated in
one geographic area or in one property type, the Fund will be particularly
subject to the risks associated with that area or property type. Many
issuers of real estate-related securities are highly leveraged, which
increases the risk to holders of such securities. The value of the
securities the Fund buys will not necessarily track the value of the
underlying investments of the issuers of such securities. In addition,
certain issuers of real estate-related securities may have developed or
commenced development on properties and may develop additional properties
in the future. Real estate development involves significant risks in
addition to those involved in the ownership and operation of established
properties. Real estate securities may have limited diversification and
are, therefore, subject to risks inherent in operating and financing a
limited number of projects. Real estate securities are also subject to
heavy cash flow dependency and defaults by borrowers or tenants.
|
∎ |
REIT Investment
Risk — In addition to the risks facing real estate-related
securities, such as a decline in property values due to increasing
vacancies, a decline in rents resulting from unanticipated economic, legal
or technological developments or a decline in the price of securities of
real estate companies due to a failure of borrowers to pay their loans or
poor management, investments in REITs involve unique risks. REITs may have
limited financial resources, may trade less frequently and in limited
volume, may engage in dilutive offerings of securities and may be more
volatile than other securities. REIT issuers may also fail to maintain
their exemptions from investment company registration or fail to qualify
for the “dividends paid deduction” under the Internal Revenue Code, which
allows REITs to reduce their corporate taxable income for dividends paid
to their shareholders. Ordinary REIT dividends received by the Fund and
distributed to the Fund’s shareholders will generally be taxable as
ordinary income and will not constitute “qualified dividend income.”
However, for tax years beginning after December 31, 2017 and before
January 1, 2026, a non‑corporate taxpayer who is a direct REIT
shareholder may claim a 20% “qualified business income” deduction for
ordinary REIT dividends, and a regulated investment company may report
dividends as eligible for this deduction to the extent the regulated
investment company’s income is derived from ordinary REIT dividends
(reduced by allocable regulated investment company expenses). A
shareholder may treat the dividends as such provided the regulated
investment company and the shareholder satisfy applicable holding period
requirements. |
∎ |
Representative
Sampling Risk — Representative sampling is a method of
indexing that involves investing in a representative sample of securities
that collectively have a similar investment profile to the index and
resemble the index in terms of risk factors and other key characteristics.
A passively managed
ETF may or may not hold every security in the index. When an ETF
deviates from a full replication indexing strategy to utilize a
representative sampling strategy, the ETF is subject to an increased risk
of tracking error, in that the securities selected in the aggregate for
the ETF may not have an investment profile similar to those of its index.
|
∎ |
Repurchase
Agreements Risk — If the other party to a repurchase
agreement defaults on its obligation under the agreement, the Fund may
suffer delays and incur costs or lose money in exercising its rights under
the agreement. If the seller fails to repurchase the security and the
market value of the security declines, the Fund may lose money.
|
∎ |
Shares of an
ETF May Trade at Prices Other Than Net Asset Value — Shares
of an ETF trade on exchanges at prices at, above or below their most
recent net asset value. The per share net asset value of an ETF is
calculated at the end of each business day and fluctuates with changes in
the market value of the ETF’s holdings since the most recent calculation.
The trading prices of an ETF’s shares fluctuate continuously throughout
trading hours based on market supply and demand rather than net asset
value. The trading prices of an ETF’s shares may deviate significantly
from net asset value during periods of market volatility. Any of these
factors may lead to an ETF’s shares trading at a premium or discount to
net asset value. However, because shares can be created and redeemed in
creation units, which are aggregated blocks of shares that authorized
participants who have entered into agreements with the ETF’s distributor
can purchase or redeem directly from the ETF, at net asset value (unlike
shares of many closed‑end funds, which frequently trade at appreciable
discounts from, and sometimes at premiums to, their net asset values),
large discounts or premiums to the net asset value of an ETF are not
likely to be sustained over the long-term. While the creation/redemption
feature is designed to make it likely that an ETF’s shares normally trade
on exchanges at prices close to the ETF’s next calculated net asset value,
exchange prices are not expected to correlate exactly with an ETF’s net
asset value due to timing reasons as well as market supply and demand
factors. In addition, disruptions to creations and redemptions or the
existence of extreme market volatility may result in trading prices that
differ significantly from net asset value. If a shareholder purchases at a
time when the market price is at a premium to the net asset value or sells
at a time when the market price is at a discount to the net asset value,
the shareholder may sustain losses. The use of cash creations and
redemptions may also cause the ETFs’ shares to trade in the market at
greater bid‑ask spreads or greater premiums or discounts to the ETFs’ NAV.
|
∎ |
Small and
Mid‑Capitalization Company Risk — Companies with small or
mid‑size market capitalizations will normally have more limited product
lines, markets and financial resources and will be dependent upon a more
limited management group than larger capitalized companies. In addition,
it is more difficult to get information on |
smaller
companies, which tend to be less well known, have shorter operating
histories, do not have significant ownership by large investors and are
followed by relatively few securities analysts. |
∎ |
Structured
Securities Risk — Because structured securities of the type
in which the Fund may invest typically involve no credit enhancement,
their credit risk generally will be equivalent to that of the underlying
instruments, index or reference obligation and will also be subject to
counterparty risk. The Fund may have the right to receive payments only
from the structured security, and generally does not have direct rights
against the issuer or the entity that sold the assets to be securitized.
In addition to the general risks associated with debt securities discussed
herein, structured securities carry additional risks, including, but not
limited to: the possibility that distributions from collateral securities
will not be adequate to make interest or other payments; the quality of
the collateral may decline in value or default; and the possibility that
the structured securities are subordinate to other classes. The Fund is
permitted to invest in a class of structured securities that is either
subordinated or unsubordinated to the right of payment of another class.
Subordinated structured securities typically have higher yields and
present greater risks than unsubordinated structured securities.
Structured securities are typically sold in private placement
transactions, and there currently is no active trading market for
structured securities. Structured securities are based upon the movement
of one or more factors, including currency exchange rates, interest rates,
reference bonds and stock indices, and changes in interest rates and
impact of these factors may cause significant price fluctuations.
Additionally, changes in the reference instrument or security may cause
the interest rate on the structured security to be reduced to zero.
Certain issuers of such structured securities may be deemed to be
“investment companies” as defined in the Investment Company Act. As a
result, the Fund’s investment in such securities may be limited by certain
investment restrictions contained in the Investment Company Act.
|
∎ |
Tax Risk
— Although the Fund intends to invest primarily in
securities the interest on which, in the opinion of counsel to the issuer,
is exempt from federal income tax, the IRS has generally not ruled on the
taxability of the securities. An assertion by the IRS that a portfolio
security is not exempt from Federal income tax (contrary to indications
from the issuer) could affect the Fund’s and shareholder’s income tax
liability for the current or past years and could create liability for
information reporting penalties. In addition, an IRS assertion of
taxability may impair the liquidity and the fair market value of the
securities. |
∎ |
Tracking Error
Risk — Tracking error, which is the divergence of an
Underlying Fund’s performance from that of its Underlying Index. Tracking
error may occur because of differences between the securities and other
instruments held in an Underlying Fund’s portfolio and those included in
its Underlying Index, pricing differences, transaction costs incurred by
the Underlying Fund, the Underlying Fund’s holding of uninvested cash,
differences in timing of the accrual or the valuation of distributions,
the requirements to maintain pass-through tax treatment, portfolio
transactions carried out to minimize the distribution of capital gains to
shareholders, acceptance of custom baskets, changes to the Underlying
Index or the costs to an Underlying Fund of complying with various new or
existing regulatory requirements, among other reasons. This risk may be
heightened during times of increased market volatility or other unusual
market conditions. Tracking error also may result because an Underlying
Fund incurs fees and expenses, while its Underlying Index does not.
|
∎ |
Treasury
Obligations Risk — Direct obligations of the U.S. Treasury
have historically involved little risk of loss of principal if held to
maturity. However, due to fluctuations in interest rates, the market value
of such securities may vary during the period shareholders own shares of
the Fund. In addition, notwithstanding that U.S. Treasury obligations are
backed by the full faith and credit of the United States, circumstances
could arise that could prevent the timely payment of interest or
principal, such as reaching the legislative “debt ceiling.” Such
non‑payment could result in losses to the Fund and substantial negative
consequences for the U.S. economy and the global financial system.
|
∎ |
U.S. Government
Issuer Risk — Treasury obligations may differ in their
interest rates, maturities, times of issuance and other characteristics.
Obligations of U.S. Government agencies and authorities are supported by
varying degrees of credit but generally are not backed by the full faith
and credit of the U.S. Government. No assurance can be given that the U.S.
Government will provide financial support to its agencies and authorities
if it is not obligated by law to do so. |
∎ |
Valuation
Risk — The price the Fund could receive upon the sale of a
security or other asset may differ from the Fund’s valuation of the
security or other asset and from the value used by the Underlying Index,
particularly for securities or other assets that trade in low volume or
volatile markets or that are valued using a fair value methodology as a
result of trade suspensions or for other reasons. Because non‑U.S.
exchanges may be open on days or during time periods when the Fund does
not price its shares, the value of the securities or other assets in the
Fund’s portfolio may change on days or during time periods when
shareholders will not be able to purchase or sell the Fund’s shares. In
addition, for purposes of calculating the Fund’s NAV, the value of assets
denominated in non‑U.S. currencies is translated into U.S. dollars at the
prevailing market rates. This translation may result in a difference
between the prices used to calculate the Fund’s NAV and the prices used by
the Underlying Index, which, in turn, could result in a difference between
the Fund’s performance and the performance of the Underlying Index.
Authorized Participants who purchase or redeem Fund shares on days when
the Fund is holding fair-valued securities may receive fewer or more
shares, or lower or higher redemption proceeds, than they would have
received |
had
the securities not been fair valued or been valued using a different
methodology. The ability to value investments may be impacted by
technological issues or errors by pricing services or other third-party
service providers. |
∎ |
Variable and
Floating Rate Instrument Risk — Variable and floating rate
securities provide for periodic adjustment in the interest rate paid on
the securities. These securities may be subject to greater illiquidity
risk than other fixed income securities, meaning the absence of an active
market for these securities could make it difficult for the Fund to
dispose of them at any given time. |
∎ |
Asia-Pacific
Countries — In addition to the risks of investing in
non‑U.S. securities and the risks of investing in emerging markets,
Asia-Pacific countries are subject to certain additional or specific
risks. |
∎ |
Europe — The European financial
markets have recently experienced volatility and adverse trends due to
concerns about economic downturns in, or rising government debt levels of,
several European countries as well as acts of war in the region. These
events may spread to other countries in Europe and may affect the value
and liquidity of certain of the Fund’s investments.
|
∎ |
India
— India is an emerging market country and exhibits
significantly higher volatility from time to time in comparison to more
developed markets. Political and legal uncertainty, greater government
control over the economy, currency fluctuations or blockage and the risk
of nationalization or expropriation of assets may result in higher
potential for losses. |
∎ |
Russia — Because of the recent
formation of the Russian securities markets, the underdeveloped state of
Russia’s banking and telecommunication system and the legal and regulatory
framework in Russia, settlement, clearing and registration of securities
transactions are subject to additional risks. Prior to 2013, there was no
central registration system for equity share registration in Russia and
registration was carried out either by the issuers themselves or by
registrars located throughout Russia. These registrars may not have been
subject to effective state supervision or licensed with any governmental
entity. In 2013, Russia established the National Settlement Depository
(“NSD”) as a recognized central securities depository, and title to
Russian equities is now based on the records of the NSD and not on the
records of the local registrars. The implementation of the NSD is
generally expected to decrease the risk of loss in connection with
recording and transferring title to securities; however, loss may still
occur. Additionally, issuers and registrars remain prominent in the
validation and approval of documentation requirements for corporate action
processing in Russia, and there remain inconsistent market standards in
the Russian market with respect to the completion and submission of
corporate action elections. To the extent that a Fund suffers a loss
relating to title or corporate actions relating to its portfolio
securities, it may be difficult for the Fund to enforce its rights or
otherwise remedy the loss. |
∎ |
Saudi Arabia
— The ability of foreign investors (such as the Fund) to
invest in the securities of Saudi Arabian issuers is relatively new. Such
ability could be restricted by the Saudi Arabian government at any time,
and unforeseen risks could materialize with respect to foreign ownership
in such securities. In addition, the Saudi Arabian government places
investment limitations on the ownership of Saudi Arabian issuers by
foreign investors, including a limitation on the Fund’s ownership of any
single issuer listed on the Saudi Arabian Stock Exchange, which may
prevent the Fund or an Underlying Fund from investing in accordance with
its strategy and contribute to an Underlying Fund’s tracking error against
its Underlying Index. Saudi Arabia is highly reliant on income from the
sale of petroleum and trade with other countries involved in the sale of
petroleum, and its economy is therefore vulnerable to changes in foreign
currency values and the market for petroleum. As global demand for
petroleum fluctuates, Saudi Arabia may be significantly impacted. Like
most Middle Eastern governments, the government of Saudi Arabia exercises
substantial influence over many aspects of the private sector. Although
liberalization in the wider economy is underway, in many areas it has
lagged significantly: restrictions on foreign ownership persist, and the
government has an ownership stake in many key industries. The situation is
exacerbated by the fact that Saudi Arabia is governed by an absolute
monarchy. Saudi Arabia has historically experienced strained relations
with economic partners worldwide, including other countries in the Middle
East, due to geopolitical events. Governmental actions in the future could
have a significant effect on economic conditions in Saudi Arabia, which
could affect private sector companies and the Fund, as well as the value
of securities in the Fund’s portfolio. Any economic sanctions on Saudi
Arabian individuals or Saudi Arabian corporate entities, or even the
threat of sanctions, may result in the decline of the value and liquidity
of Saudi Arabian securities, a weakening of the Saudi riyal or other
adverse consequences to the Saudi Arabian economy. In addition, Saudi
Arabia’s economy relies heavily on cheap, foreign labor, and changes in
the availability of this labor supply could have an adverse effect on the
economy. |
∎ |
Financials
Sector Risk — Companies in the financials sector are subject
to extensive governmental regulation and intervention, which may adversely
affect the scope of their activities, the prices they can charge, the
amount of capital and liquid assets they must maintain and, potentially,
their size. Governmental regulation may change frequently and may have
significant adverse consequences for companies in the financials sector,
including effects not intended by such regulation. Increased risk taking
by financial companies may also result in greater overall risk in the U.S.
and global financials sector. The impact of changes in capital
requirements, or recent or future regulation in various countries, on any
individual financial company or on the financials sector as a whole cannot
be predicted. Certain risks may impact the value of investments in the
financials sector more severely than those of investments outside this
sector, including the risks associated with companies that operate with
substantial financial leverage. Companies in the financials sector are
exposed directly to the credit risk of their borrowers and counterparties,
who may be leveraged to an unknown degree, including through swaps and
other derivatives products. Financial services |
companies
may have significant exposure to the same borrowers and counterparties,
with the result that a borrower’s or counterparty’s inability to meet its
obligations to one company may affect other companies with exposure to the
same borrower or counterparty. This interconnectedness of risk may result
in significant negative impacts to companies with direct exposure to the
defaulting counterparty as well as adverse cascading effects in the
markets and the financials sector generally. Companies in the financials
sector may also be adversely affected by increases in interest rates and
loan losses, decreases in the availability of money or asset valuations,
credit rating downgrades, adverse public perception and adverse conditions
in other related markets. Insurance companies, in particular, may be
subject to severe price competition and/or rate regulation, which may have
an adverse impact on their profitability. The financials sector is
particularly sensitive to fluctuations in interest rates. The financials
sector is also a target for cyberattacks. Cybersecurity incidents and
technology malfunctions and failures have become increasingly frequent and
have caused significant losses to companies in this sector, which may
negatively impact the Fund. The extent to which the Fund may invest in a
company that engages in securities-related activities or banking is
limited by applicable law. |
∎ |
Borrowing Risk
— Borrowing may exaggerate changes in the net asset value of
Fund shares and in the return on the Fund’s portfolio. Borrowing will cost
the Fund interest expense and other fees. The costs of borrowing may
reduce the Fund’s return. Borrowing may cause the Fund to liquidate
positions when it may not be advantageous to do so to satisfy its
obligations. |
∎ |
Cyber Security
Risk — Failures or breaches of the electronic systems of the
Fund, the Fund’s adviser, distributor, and other service providers, or the
issuers of securities in which the Fund invests have the ability to cause
disruptions and negatively impact the Fund’s business operations,
potentially resulting in financial losses to the Fund and its
shareholders. While the Fund has established business continuity plans and
risk management systems seeking to address system breaches or failures,
there are inherent limitations in such plans and systems. Furthermore, the
Fund cannot control the cyber security plans and systems of the Fund’s
service providers or issuers of securities in which the Fund invests.
|
∎ |
Expense
Risk — Fund expenses are subject to a variety of factors,
including fluctuations in the Fund’s net assets. Accordingly, actual
expenses may be greater or less than those indicated. For example, to the
extent that the Fund’s net assets decrease due to market declines or
redemptions, the Fund’s expenses will increase as a percentage of Fund net
assets. During periods of high market volatility, these increases in the
Fund’s expense ratio could be significant. |
∎ |
Illiquid
Investments Risk — The Fund may not acquire any illiquid
investment if, immediately after the acquisition, the Fund would have
invested more than 15% of its net assets in illiquid investments. An
illiquid investment is any investment that the Fund reasonably expects
cannot be sold or disposed of in current market conditions in seven
calendar days or less without the sale or disposition significantly
changing the market value of the investment. Liquid investments may become
illiquid after purchase by the Fund, particularly during periods of market
turmoil. There can be no assurance that a security or instrument that is
deemed to be liquid when purchased will continue to be liquid for as long
as it is held by the Fund, and any security or instrument held by the Fund
may be deemed an illiquid investment pursuant to the Fund’s liquidity risk
management program. The Fund’s illiquid investments may reduce the returns
of the Fund because it may be difficult to sell the illiquid investments
at an advantageous time or price. In addition, if the Fund is limited in
its ability to sell illiquid investments during periods when shareholders
are redeeming their shares, the Fund will need to sell liquid securities
to meet redemption requests and illiquid securities will become a larger
portion of the Fund’s holdings. An investment may be illiquid due to,
among other things, the reduced number and capacity of traditional market
participants to make a market in fixed-income securities or the lack of an
active trading market. To the extent that the Fund’s principal investment
strategies involve derivatives or securities with substantial market
and/or credit risk, the Fund will tend to have the greatest exposure to
the risks associated with illiquid investments. Illiquid investments may
be harder to value, especially in changing markets, and if the Fund is
forced to sell these investments to meet redemption requests or for other
cash needs, the Fund may suffer a loss. This may be magnified in a rising
interest rate environment or other circumstances where investor
redemptions from fixed-income mutual funds may be higher than normal. In
addition, when there is illiquidity in the market for certain securities,
the Fund, due to limitations on illiquid investments, may be subject to
purchase and sale restrictions. |
∎ |
Operational
Risk — The Fund is exposed to operational risks arising from
a number of factors, including, but not limited to, human errors,
processing and communication errors, errors of the Fund’s service
providers, counterparties or other third parties, failed or inadequate
internal or external processes, and technology or systems failures. The
use of certain investment strategies that involve manual or additional
processing, such as over‑the‑counter derivatives, increases these risks.
While service providers are required to have appropriate operational risk
management policies and procedures, their methods of operational risk
management may differ from those of the Fund in the setting of priorities,
the personnel and resources available or the effectiveness of
|
relevant
controls. The Fund and BFA seek to reduce these operational risks through
controls, procedures and oversight. However, it is not possible to
identify all of the operational risks that may affect the Fund or to
develop processes and controls that completely eliminate or mitigate the
occurrence or effects of such failures. The Fund, including its
performance and continued operation, and its shareholders could be
negatively impacted as a result. |
∎ |
Reliance on
Advisor Risk — The Fund is dependent upon services and
resources provided by BFA, and therefore BFA’s parent, BlackRock, Inc. BFA
is not required to devote its full time to the business of the Fund and
there is no guarantee or requirement that any investment professional or
other employee of BFA will allocate a substantial portion of his or her
time to the Fund. The loss of, or changes in, BFA’s personnel could have a
negative effect on the performance or the continued operation of the Fund.
|
∎ |
Securities
Lending Risk — The Fund may engage in securities lending.
Securities lending involves the risk that the Fund may lose money because
the borrower of the loaned securities fails to return the securities in a
timely manner or at all. The Fund could also lose money in the event of a
decline in the value of collateral provided for loaned securities or a
decline in the value of any investments made with cash collateral. These
events could also trigger adverse tax consequences for the Fund. BlackRock
Institutional Trust Company, N.A. (“BTC”), the Fund’s securities lending
agent, will consider the tax impact to shareholders of substitute payments
for dividends when managing the Fund’s securities lending program.
|
∎ |
U.S. Government
Obligations Risk — Not all U.S. Government securities are
backed by the full faith and credit of the United States. Obligations of
certain agencies, authorities, instrumentalities and sponsored enterprises
of the U.S. Government are backed by the full faith and credit of the
United States (e.g., the Government National Mortgage Association); other
obligations are backed by the right of the issuer to borrow from the U.S.
Treasury (e.g., the Federal Home Loan Banks) and others are supported by
the discretionary authority of the U.S. Government to purchase an agency’s
obligations. Still others are backed only by the credit of the agency,
authority, instrumentality or sponsored enterprise issuing the obligation.
No assurance can be given that the U.S. Government would provide financial
support to any of these entities if it is not obligated to do so by law.
In addition, circumstances could arise that could prevent the timely
payment of interest or principal on U.S. Government obligations, such as
reaching the legislative “debt ceiling.” Such non‑payment could result in
losses to the Fund and substantial negative consequences for the U.S.
economy and the global financial system. |
Share Classes at a Glance1 | ||||
Investor A | Institutional | |||
Availability | Generally available through Financial Intermediaries. |
Limited
to certain investors, including:
• Individuals
and “Institutional Investors,” which include, but are not limited to,
endowments, foundations, family offices, local, city, and state
governmental institutions, corporations and insurance company separate
accounts, who may purchase shares of the Fund through a Financial
Intermediary that has entered into an agreement with the Distributor to
purchase such shares.
• Employer-sponsored
retirement plans (not including SEP IRAs, SIMPLE IRAs or SARSEPs), state
sponsored 529 college savings plans, collective trust funds, investment
companies or other pooled investment vehicles, unaffiliated thrifts and
unaffiliated banks and trust companies, each of which may purchase shares
of the Fund through a Financial Intermediary that has entered into an
agreement with the Distributor to purchase such shares.
• Employees,
officers and directors/trustees of BlackRock or its affiliates and
immediate family members of such persons, if they open an account directly
with BlackRock.
• Participants
in certain programs sponsored by BlackRock or its affiliates or other
Financial Intermediaries.
• Tax-qualified
accounts for insurance agents that are registered representatives of an
insurance company’s broker-dealer that has entered into an agreement with
the Distributor to offer Institutional Shares, and the family members of
such persons.
• Clients
investing through Financial Intermediaries that have entered into an
agreement with the Distributor to offer such shares on a platform that
charges a transaction based sales commission outside of the Fund.
• Clients
investing through a self-directed IRA brokerage account program sponsored
by a retirement plan record-keeper, provided that such program offers only
mutual fund options and that the program maintains an account with the
Fund on an omnibus basis. |
Share Classes at a Glance1 | ||||
Investor A | Institutional | |||
Minimum Investment |
$1,000
for all accounts except:
• $50,
if establishing an Automatic Investment Plan (“AIP”).
• There
is no investment minimum for employer-sponsored retirement plans
(not including SEP IRAs, SIMPLE IRAs or SARSEPs).
• There
is no investment minimum for certain fee-based programs. |
There
is no investment minimum for:
• Employer-sponsored
retirement plans (not including SEP IRAs, SIMPLE IRAs or SARSEPs), state
sponsored 529 college savings plans, collective trust funds, investment
companies or other pooled investment vehicles, unaffiliated thrifts and
unaffiliated banks and trust companies.
• Employees,
officers and directors/trustees of BlackRock or its affiliates and
immediate family members of such persons, if they open an account directly
with BlackRock.
• Clients
of Financial Intermediaries that: (i) charge such clients a fee for
advisory, investment consulting, or similar services or (ii) have entered
into an agreement with the Distributor to offer Institutional Shares
through a no-load program or investment platform.
• Clients
investing through a self-directed IRA brokerage account program sponsored
by a retirement plan record-keeper, provided that such program offers only
mutual fund options and that the program maintains an account with the
Fund on an omnibus basis.
$2
million for individuals and Institutional Investors.
$1,000
investment minimum for:
• Clients
investing through Financial Intermediaries that offer such shares on a
platform that charges a transaction based sales commission outside of the
Fund.
• Tax-qualified
accounts for insurance agents that are registered representatives of an
insurance company’s broker-dealer that has entered into an agreement with
the Distributor to offer Institutional Shares, and the family members of
such persons.
| ||
Initial Sales Charge? | No. Entire purchase price is invested in shares of the Fund. | No. Entire purchase price is invested in shares of the Fund. | ||
Deferred Sales Charge? | No. | No. | ||
Distribution and Service (12b-1) Fees? |
No
Distribution Fee.
0.25%
Annual Service Fee. |
No. | ||
Redemption Fees? | No. | No. | ||
Conversion to Investor A Shares? | N/A | No. | ||
Advantage | Generally available. | No annual service fee. | ||
Disadvantage | Annual service fee. | Limited availability. |
1 |
Please
see “Details About the Share Classes” for more information about each
share class. |
∎ |
Individuals
and “Institutional Investors” with a minimum initial investment of $2
million who may purchase shares of a Fund through a Financial Intermediary
that has entered into an agreement with the Distributor to purchase such
shares; |
∎ |
Clients
of Financial Intermediaries that: (i) charge such clients a fee for
advisory, investment consulting, or similar services or (ii) have
entered into an agreement with the Distributor to offer Institutional
Shares through a no-load program or investment platform, in each case,
with no minimum initial investment; |
∎ |
Clients
investing through Financial Intermediaries that have entered into an
agreement with the Distributor to offer such shares on a platform that
charges a transaction based sales commission outside of the Fund, with a
minimum initial investment of $1,000; |
∎ |
Employer-sponsored
retirement plans (not including SEP IRAs, SIMPLE IRAs or SARSEPs), state
sponsored 529 college savings plans, collective trust funds, investment
companies or other pooled investment vehicles, unaffiliated thrifts and
unaffiliated banks and trust companies, each of which is not subject to
any minimum initial investment and may purchase shares of a Fund through a
Financial Intermediary that has entered into an agreement with the
Distributor to purchase such shares; |
∎ |
Trust
department clients of Bank of America, N.A. and its affiliates for whom
they (i) act in a fiduciary capacity (excluding participant directed
employee benefit plans); (ii) otherwise have investment discretion; or
(iii) act as custodian for at least $2 million in assets, who are not
subject to any minimum initial investment; |
∎ |
Holders
of certain Bank of America Corporation (“BofA Corp.”) sponsored unit
investment trusts (“UITs”) who reinvest dividends received from such UITs
in shares of a Fund, who are not subject to any minimum initial
investment; |
∎ |
Employees,
officers and directors/trustees of BlackRock, Inc., mutual funds sponsored
and advised by BlackRock or its affiliates (“BlackRock Funds”), BofA
Corp., Barclays PLC or their respective affiliates and immediate family
members of such persons, if they open an account directly with BlackRock,
who are not subject to any minimum initial investment;
|
∎ |
Tax-qualified
accounts for insurance agents that are registered representatives of an
insurance company’s broker-dealer that has entered into an agreement with
the Distributor to offer Institutional Shares, and the family members of
such persons; and |
∎ |
Clients
investing through a self-directed IRA brokerage account program sponsored
by a retirement plan record-keeper, provided that such program offers only
mutual fund options and that the program maintains an account with a Fund
on an omnibus basis. |
i. |
The
current value of an investor’s existing Investor A and A1, Investor C,
Investor P, Institutional, Class K and Premier Shares in most BlackRock
Funds, |
ii. |
The
current value of an investor’s existing shares of certain unlisted
closed-end management investment companies sponsored and advised by
BlackRock or its affiliates and |
iii. |
The
investment in the BlackRock CollegeAdvantage 529 Program by the investor
or by or on behalf of the investor’s spouse and children.
|
∎ |
Answering
customer inquiries regarding account status and history, the manner in
which purchases, exchanges and redemptions or repurchases of shares may be
effected and certain other matters pertaining to the customers’
investments; |
∎ |
Assisting
customers in designating and changing dividend options, account
designations and addresses; and |
∎ |
Providing
other similar shareholder liaison services. |
How to Buy Shares | ||||||
Your Choices | Important Information for You to Know | |||||
Initial Purchase | First, select the share class appropriate for you |
Refer
to the “Share Classes at a Glance” table in this prospectus (be sure to
read this prospectus carefully). When you place your initial order, you
must indicate which share class you select (if you do not specify a share
class and do not qualify to purchase Institutional Shares, you will
receive Investor A Shares).
Certain
factors, such as the amount of your investment, your time frame for
investing and your financial goals, may affect which share class you
choose. Your Financial Intermediary can help you determine which share
class is appropriate for you. | ||||
Next, determine the amount of your investment | Refer to the minimum initial investment in the “Share Classes at a Glance” table in this prospectus. See “Account Information — Details About the Share Classes” for information on lower initial investment requirements for certain Fund investors if their purchase, combined with purchases by other investors received together by a Fund, meets the minimum investment requirement. | |||||
Have your Financial Intermediary submit your purchase order |
The
price of your shares is based on the next calculation of a Fund’s net
asset value after your order is placed. Any purchase orders placed prior
to the close of business on the New York Stock Exchange (the “NYSE”)
(generally 4:00 p.m. Eastern time) will be priced at the net asset value
determined that day. Certain Financial Intermediaries, however, may
require submission of orders prior to that time. Purchase orders placed
after that time will be priced at the net asset value determined on the
next business day. A broker-dealer or financial institution maintaining
the account in which you hold shares may charge a separate account,
service or transaction fee on the purchase or sale of Fund shares that
would be in addition to the fees and expenses shown in the applicable
Fund’s “Fees and Expenses” table.
The
Funds may reject any order to buy shares and may suspend the sale of
shares at any time. Certain Financial Intermediaries may charge a
processing fee to confirm a purchase. | |||||
Or contact BlackRock (for accounts held directly with BlackRock) | To purchase shares directly from BlackRock, call (800) 441-7762 and request a new account application. Mail the completed application along with a check payable to “BlackRock Funds” to the Transfer Agent at the address on the application. The Fund limits purchases by personal check to $500,000 per trade. | |||||
Add to Your Investment | Purchase additional shares | For Investor A Shares, the minimum investment for additional purchases is generally $50 for all accounts (with the exception of certain employer-sponsored retirement plans which may have a lower minimum for additional purchases). The minimums for additional purchases may be waived under certain circumstances. Institutional Shares have no minimum for additional purchases. | ||||
Have your Financial Intermediary submit your purchase order for additional shares | To purchase additional shares, you may contact your Financial Intermediary. | |||||
Or contact BlackRock (for accounts held directly with BlackRock) |
Purchase by Telephone: Call (800)
441-7762 and speak with one of our representatives. The Funds have the
right to reject any telephone request for any reason.
Purchase in Writing: You may send a
written request to BlackRock at the address on the back cover of this
prospectus.
|
How to Buy Shares (continued) | ||||||
Your Choices | Important Information for You to Know | |||||
Add
to Your Investment (continued) |
Or
contact BlackRock (for accounts held directly with BlackRock)
(continued) |
Purchase by VRU: Investor Shares may also
be purchased by use of the Funds’ automated voice response unit (“VRU”)
service at (800) 441‑7762.
Purchase by Internet: You may purchase
your shares, and view activity in your account, by logging onto the
BlackRock website at www.blackrock.com. Purchases made on the Internet
using the Automated Clearing House Network (“ACH”) will have a trade date
that is the day after the purchase is made. Certain institutional clients’
purchase orders for shares placed by wire prior to the close of business
on the NYSE will be priced at the net asset value determined that day.
Contact your Financial Intermediary or BlackRock for further information.
The Funds limit Internet purchases in shares of a Fund to $25,000 per
trade. Please read the On-Line Services Disclosure Statement and User
Agreement, the Terms and Conditions page and the Consent to Electronic
Delivery Agreement (if you consent to electronic delivery), before
attempting to transact online.
The
Funds employ reasonable procedures to confirm that transactions entered
over the Internet are genuine. By entering into the User Agreement with a
Fund in order to open an account through the website, the shareholder
waives any right to reclaim any losses from a Fund or any of its
affiliates incurred through fraudulent activity. | ||||
Acquire additional shares by reinvesting dividends and capital gains | All dividends and capital gains distributions are automatically reinvested in shares of the Fund at net asset value. To make any changes to your dividend and/or capital gains distributions options, please call (800) 441-7762, or contact your Financial Intermediary (if your account is not held directly with BlackRock). | |||||
Participate in the AIP | BlackRock’s AIP allows you to invest a specific amount on a periodic basis from your checking or savings account into your investment account. | |||||
How to Pay for Shares | Making payment for purchases |
Payment
for an order must be made in Federal funds or other immediately available
funds by the time specified by your Financial Intermediary, but in no
event later than 4:00 p.m. (Eastern time) on the first business day (in
the case of Investor A Shares or Institutional Shares) following
BlackRock’s receipt of the order. If payment is not received by this time,
the order will be canceled and you and your Financial Intermediary will be
responsible for any loss to a Fund.
For
shares purchased directly from a Fund, a check payable to “BlackRock
Funds,” which bears the name of the Fund you are purchasing, must
accompany a completed purchase application. The Fund limits purchases by
personal check to $500,000 per trade. There is a $20 fee for each purchase
check that is returned due to insufficient funds.
The
Funds do not accept third-party checks. You may also wire Federal funds to
a Fund to purchase shares, but you must call (800) 441‑7762 before
doing so to confirm the wiring instructions. | ||||
How to Sell Shares | ||||||
Your Choices | Important Information for You to Know | |||||
Full or Partial Redemption of Shares | Have your Financial Intermediary submit your sales order |
You
can make redemption requests through your Financial Intermediary. The
price of your shares is based on the next calculation of a Fund’s net
asset value after your order is placed. For your redemption request to be
priced at the net asset value on the day of your request, you must submit
your request to your Financial Intermediary prior to that day’s close of
business on the NYSE (generally 4:00 p.m. (Eastern time)). Certain
Financial Intermediaries, however, may require submission of orders prior
to that time. Any redemption request placed after that time will be priced
at the net asset value at the close of business on the next business
day.
Regardless
of the method the Fund uses to make payment of your redemption proceeds
(check, wire or ACH), your redemption proceeds typically will be sent one
to two business days after your request is submitted, but in any event,
within seven days.
|
How to Sell Shares (continued) | ||||||
Your Choices | Important Information for You to Know | |||||
Full
or Partial Redemption of Shares (continued) |
Have
your Financial Intermediary submit your sales order (continued) |
Certain
Financial Intermediaries may charge a fee to process a redemption of
shares.
The
Funds may reject an order to sell shares under certain
circumstances. | ||||
Selling shares held directly with BlackRock |
Methods
of Redeeming
Redeem by Telephone: You may sell shares
of a Fund held directly at BlackRock by telephone request if certain
conditions are met and if the amount being sold is less than (i) $100,000
for payments by check or (ii) $250,000 for payments through ACH or wire
transfer. Certain redemption requests, such as those in excess of these
amounts, must be in writing with a medallion signature guarantee. Call
(800) 441‑7762 for details.
You
can obtain a medallion signature guarantee stamp from a bank, securities
dealer, securities broker, credit union, savings and loan association,
national securities exchange or registered securities association. A
notary public seal will not be acceptable.
The
Funds, their administrator and the Distributor will employ reasonable
procedures to confirm that instructions communicated by telephone are
genuine. The Funds and their service providers will not be liable for any
loss, liability, cost or expense for acting upon telephone instructions
that are reasonably believed to be genuine in accordance with such
procedures. The Funds may refuse a telephone redemption request if it
believes it is advisable to do so. During periods of substantial economic
or market change, telephone redemptions may be difficult to complete.
Please find below alternative redemption methods. | |||||
Redeem by VRU: Investor Shares may also
be redeemed by use of the Funds’ VRU service. Payment for Investor Shares
redeemed by the VRU service may be made for non-retirement accounts in
amounts up to $25,000, either through check, ACH or wire.
Redeem by Internet: You may redeem in
your account by logging onto the BlackRock website at www.blackrock.com.
Proceeds from Internet redemptions may be sent via check, ACH or wire to
the bank account of record. Payment for shares redeemed via Internet may
be made for non-retirement accounts in amounts up to $25,000, either
through check, ACH or wire.
Redeem in Writing: You may sell shares
held at BlackRock by writing to BlackRock, P.O. Box 534429, Pittsburgh,
Pennsylvania 15253-4429 or, for overnight delivery, Attention: 534429, 500
Ross Street 154-0520, Pittsburgh, Pennsylvania 15262. All shareholders on
the account must sign the letter. A medallion signature guarantee will
generally be required but may be waived in certain limited
circumstances.
You
can obtain a medallion signature guarantee stamp from a bank, securities
dealer, securities broker, credit union, savings and loan association,
national securities exchange or registered securities association. A
notary public seal will not be acceptable. If you hold stock certificates,
return the certificates with the letter. Proceeds from redemptions may be
sent via check, ACH or wire to the bank account of record.
Payment
of Redemption Proceeds
Redemption
proceeds may be paid by check or, if a Fund has verified banking
information on file, through ACH or by wire transfer.
Payment by Check: BlackRock will normally
mail redemption proceeds within three business days following receipt of a
properly completed request, but in any event within seven days. Shares can
be redeemed by telephone and the proceeds sent by check to the shareholder
at the address on record. Shareholders will pay $15 for redemption
proceeds sent by check via overnight mail. You are responsible for any
additional charges imposed by your bank for this service.
|
How to Sell Shares (continued) | ||||||
Your Choices | Important Information for You to Know | |||||
Full
or Partial Redemption of Shares (continued) |
Selling
shares held directly with BlackRock (continued) |
Each
Fund reserves the right to reinvest any dividend or distribution amounts
(e.g., income dividends or capital
gains) which you have elected to receive by check should your check be
returned as undeliverable or remain uncashed for more than 6 months. No
interest will accrue on amounts represented by uncashed checks. Your check
will be reinvested in your account at the net asset value next calculated,
on the day of the investment. When reinvested, those amounts are subject
to the risk of loss like any fund investment. If you elect to receive
distributions in cash and a check remains undeliverable or uncashed for
more than 6 months, your cash election may also be changed automatically
to reinvest and your future dividend and capital gains distributions will
be reinvested in the Fund at the net asset value as of the date of payment
of the distribution.
Payment by Wire Transfer: Payment for
redeemed shares for which a redemption order is received before 4:00 p.m.
(Eastern time) on a business day is normally made in Federal funds wired
to the redeeming shareholder on the next business day, provided that the
Funds’ custodian is also open for business. Payment for redemption orders
received after 4:00 p.m. (Eastern time) or on a day when the Funds’
custodian is closed is normally wired in Federal funds on the next
business day following redemption on which the Funds’ custodian is open
for business. The Funds reserve the right to wire redemption proceeds
within seven days after receiving a redemption order if, in the judgment
of a Fund, an earlier payment could adversely affect the Fund.
If
a shareholder has given authorization for expedited redemption, shares can
be redeemed by Federal wire transfer to a single previously designated
bank account. Shareholders will pay $7.50 for redemption proceeds sent by
Federal wire transfer. You are responsible for any additional charges
imposed by your bank for this service. No charge for wiring redemption
payments with respect to the Funds is imposed by the Funds.
The
Funds are not responsible for the efficiency of the Federal wire system or
the shareholder’s firm or bank. To change the name of the single,
designated bank account to receive wire redemption proceeds, it is
necessary to send a written request to the Funds at the address on the
back cover of this prospectus.
Payment by ACH: Redemption proceeds may
be sent to the shareholder’s bank account (checking or savings) via ACH.
Payment for redeemed shares for which a redemption order is received
before 4:00 p.m. (Eastern time) on a business day is normally sent to the
redeeming shareholder the next business day, with receipt at the receiving
bank within the next two business days (48-72 hours), provided that the
Funds’ custodian is also open for business. Payment for redemption orders
received after 4:00 p.m. (Eastern time) or on a day when the Funds’
custodian is closed is normally sent on the next business day following
redemption on which the Funds’ custodian is open for business.
The
Funds reserve the right to send redemption proceeds within seven
days after receiving a redemption order if, in the judgment of a
Fund, an earlier payment could adversely affect the Fund. No charge for
sending redemption payments via ACH is imposed by the Funds. If you make a
redemption request before a Fund has collected payment for the purchase of
shares, the Fund may delay mailing your proceeds. This delay will usually
not exceed ten days. |
How to Sell Shares (continued) | ||||||
Your Choices | Important Information for You to Know | |||||
Redemption Proceeds |
Under
normal circumstances, the Funds expect to meet redemption requests by
using cash or cash equivalents in its portfolio or by selling portfolio
assets to generate cash. During periods of stressed market conditions,
when a significant portion of a Fund’s portfolio may be comprised of
less-liquid investments, the Fund may be more likely to limit cash
redemptions and may determine to pay redemption proceeds by
(i) borrowing under a line of credit it has entered into with a group
of lenders, (ii) borrowing from another BlackRock Fund pursuant to an
interfund lending program, to the extent permitted by the Fund’s
investment policies and restrictions as set forth in the SAI, and/or
(iii) transferring portfolio securities in-kind to you. The SAI
includes more information about each Fund’s line of credit and interfund
lending program, to the extent applicable.
If
a Fund pays redemption proceeds by transferring portfolio securities
in-kind to you, you may pay transaction costs to dispose of the
securities, and you may receive less for them than the price at which they
were valued for purposes of redemption. | |||||
How to Exchange Shares or Transfer your Account | ||||||
Your Choices | Important Information for You to Know | |||||
Exchange
Privilege |
Selling
shares of one BlackRock Fund to purchase shares of another BlackRock Fund
(“exchanging”) |
Investor
or Institutional Shares of a Fund are generally exchangeable for shares of
the same class of another BlackRock Fund, to the extent such shares are
offered by your Financial Intermediary.
You
can exchange $1,000 or more of Investor Shares from one fund into the same
class of another fund which offers that class of shares (you can exchange
less than $1,000 of Investor Shares if you already have an account in the
fund into which you are exchanging). Investors who currently own
Institutional Shares of a Fund may make exchanges into Institutional
Shares of other BlackRock Funds except for investors holding shares
through certain client accounts at Financial Intermediaries that are
omnibus with the Fund and do not meet applicable minimums. There is no
required minimum amount with respect to exchanges of Institutional Shares.
You may only exchange into a share class and fund that are open to new
investors or in which you have a current account, if the fund is closed to
new investors.
Some
of the BlackRock Funds impose a different initial or deferred sales charge
schedule. Therefore the exchange of Investor A Shares may be subject to
that sales charge. Investor A Shares of a Fund that were obtained with the
exchange privilege and that originally were shares of a BlackRock Fund
that were subject to a sales charge can be exchanged for Investor A Shares
of another BlackRock Fund based on their respective net asset values. The
contingent deferred sales charge (“CDSC”) will continue to be measured
from the date of the original purchase. The CDSC schedule applicable to
your original purchase will apply to the shares you receive in the
exchange and any subsequent exchange.
To
exercise the exchange privilege, you may contact your Financial
Intermediary. Alternatively, if your account is held directly with
BlackRock, you may: (i) call (800) 441‑7762 and speak with
one of our representatives, (ii) make the exchange via the Internet
by accessing your account online at www.blackrock.com, or (iii) send
a written request to the Fund at the address on the back cover of this
prospectus. Please note, if you indicated on your new account application
that you did not want the Telephone Exchange Privilege, you will not be
able to place exchanges via the telephone until you update this option
either in writing or by calling (800) 441‑7762. The Funds have
the right to reject any telephone request for any reason.
Although
there is currently no limit on the number of exchanges that you can make,
the exchange privilege may be modified or terminated at any time in the
future. A Fund may suspend or terminate your exchange privilege at any
time for any reason, including if the Fund believes, in its sole
discretion, that you are engaging in market timing activities. See
“Short-Term Trading Policy’’ below. For U.S. federal income tax purposes a
share exchange is a taxable event and a capital gain or loss may be
realized.
Please
consult your tax adviser or other Financial Intermediary before making an
exchange request.
|
How to Exchange Shares or Transfer your Account (continued) | ||||||
Your Choices | Important Information for You to Know | |||||
Transfer Shares to Another Financial Intermediary | Transfer to a participating Financial Intermediary |
You
may transfer your shares of a Fund only to another Financial Intermediary
that has an agreement with the Distributor. Certain shareholder services
may not be available for the transferred shares. All future trading of
these assets must be coordinated by the receiving firm.
If
your account is held directly with BlackRock, you may call
(800) 441‑7762 with any questions; otherwise please contact your
Financial Intermediary to accomplish the transfer of shares. | ||||
Transfer to a non-participating Financial Intermediary |
You
must either:
• Transfer
your shares to an account with a Fund; or
• Sell
your shares, paying any applicable deferred sales charge.
If
your account is held directly with BlackRock, you may call
(800) 441‑7762 with any questions; otherwise please contact your
Financial Intermediary to accomplish the transfer of
shares. |
Automatic Investment Plan | Allows systematic investments on a periodic basis from your checking or savings account. | BlackRock’s AIP allows you to invest a specific amount on a periodic basis from your checking or savings account into your investment account. You may apply for this option upon account opening or by completing the AIP application. The minimum investment amount for an automatic investment is $50 per portfolio. | ||||
Dividend Allocation Plan | Automatically invests your distributions into another BlackRock Fund of your choice pursuant to your instructions, without any fees or sales charges. | Dividend and capital gains distributions may be reinvested in your account to purchase additional shares or paid in cash. Using the Dividend Allocation Plan, you can direct your distributions to your bank account (checking or savings), to purchase shares of another fund at BlackRock without any fees or sales charges, or by check to a special payee. Please call (800) 441-7762 for details. The fund into which you request your distribution to be invested must be open to new purchases. | ||||
EZ Trader | Allows an investor to purchase or sell Institutional Shares by telephone or over the Internet through ACH. |
(NOTE:
This option is offered to shareholders whose accounts are held directly
with BlackRock. Please speak with your Financial Intermediary if your
account is held elsewhere.)
Prior
to establishing an EZ Trader account, please contact your bank to confirm
that it is a member of the ACH system. Once confirmed, complete an
application, making sure to include the appropriate bank information, and
return the application to the address listed on the form.
Prior
to placing a telephone or internet purchase or sale order, please contact
(800) 441-7762 to confirm that your bank information has been updated
on your account. Once this is established, you may place your request to
sell shares with the Funds by telephone or Internet.
Proceeds
will be sent to your pre-designated bank account. | ||||
Systematic Exchange Plan | This feature can be used by investors to systematically exchange money from one fund to up to four other funds. | A minimum of $10,000 in the initial BlackRock Fund is required and investments in any additional funds must meet minimum initial investment requirements. |
Systematic Withdrawal Plan | This feature can be used by investors who want to receive regular distributions from their accounts. |
To
start an SWP a shareholder must have a current investment of $10,000 or
more in a BlackRock Fund. Shareholders can elect to receive cash payments
of $50 or more at any interval they choose. Shareholders may sign up by
completing the SWP Application Form, which may be obtained from
BlackRock.
Shareholders
should realize that if withdrawals exceed income the invested principal in
their account will be depleted.
To
participate in the SWP, shareholders must have their dividends reinvested.
Shareholders may change or cancel the SWP at any time, with a minimum of
24 hours’ notice. If a shareholder purchases additional Investor A Shares
of a fund at the same time he or she redeems shares through the SWP, that
investor may lose money because of the sales charge involved. No CDSC will
be assessed on redemptions of Investor A Shares made through the SWP that
do not
exceed
12% of the account’s net asset value on an annualized basis. For example,
monthly, quarterly, and semi-annual SWP redemptions of Investor A Shares
will not be subject to the CDSC if they do not exceed 1%, 3% and 6%,
respectively, of an account’s net asset value on the redemption date. SWP
redemptions of Investor A Shares in excess of this limit will still pay
any applicable CDSC.
Ask
your Financial Intermediary for details. |
∎ |
Suspend
the right of redemption if trading is halted or restricted on the NYSE or
under other emergency conditions described in the Investment Company Act;
|
∎ |
Postpone
the date of payment upon redemption if trading is halted or restricted on
the NYSE or under other emergency conditions described in the Investment
Company Act or if a redemption request is made before a Fund has collected
payment for the purchase of shares; |
∎ |
Redeem
shares for property other than cash as may be permitted under the
Investment Company Act; and |
∎ |
Redeem
shares involuntarily in certain cases, such as when the value of a
shareholder account falls below a specified level.
|
Fund |
Management Fee Rate (Net of Applicable Waivers) | ||||
BlackRock
LifePath® Index Retirement
Fund |
0.01 | % | |||
BlackRock
LifePath® Index 2025
Fund |
0.01 | % | |||
BlackRock
LifePath® Index 2030
Fund |
0.01 | % | |||
BlackRock
LifePath® Index 2035
Fund |
0.00 | % | |||
BlackRock
LifePath® Index 2040
Fund |
0.00 | % | |||
BlackRock
LifePath® Index 2045
Fund |
0.00 | % | |||
BlackRock
LifePath® Index 2050
Fund |
0.00 | % | |||
BlackRock
LifePath® Index 2055
Fund |
0.00 | % | |||
BlackRock
LifePath® Index 2060
Fund |
0.00 | % | |||
BlackRock
LifePath® Index 2065
Fund |
0.00 | % |
Portfolio Manager | Primary Role | Since | Title and Recent Biography | |||||
Chris Chung, CFA | Jointly and primarily responsible for the day‑to‑day management of each Fund’s portfolio, including setting the Fund’s overall investment strategy and overseeing the management of the Fund. | 2020 | Managing Director of BlackRock, Inc. since 2021; Director of BlackRock, Inc. from 2015 to 2021; Vice President of BlackRock, Inc. from 2011 to 2014; Associate of BlackRock, Inc. from 2009 to 2010; Associate of Barclays Global Investors (“BGI”) from 2008 to 2009; Senior Manager of American Express from 2004 to 2008; research professional at the Center for Interuniversity Research and Analysis of Organizations (CIRANO) from 2002 to 2006. | |||||
Lisa O’Connor, CFA | Jointly and primarily responsible for the day‑to‑day management of each Fund’s portfolio, including setting the Fund’s overall investment strategy and overseeing the management of the Fund. | 2020 | Managing Director of BlackRock, Inc. since 2017; Managing Director of State Street Global Advisors from 2013 to 2017; Managing Director of Mellon Capital Management from 2001 to 2013; Director of BuySide Direct in 2000; Derivatives portfolio manager and trader at Mellon Capital Management from 1998 to 2000; Vice President of Coutts & Co. from 1996 to 1998; equity derivatives analyst from 1993 to 1996. | |||||
Greg Savage, CFA | Jointly and primarily responsible for the day‑to‑day management of each Fund’s portfolio, including setting the Fund’s overall investment strategy and overseeing the management of the Fund. | 2018 | 1 | Managing Director of BlackRock, Inc. since 2010; Director of BlackRock, Inc. in 2009; Principal of BGI from 2007 to 2009; Associate of BGI from 1999 to 2007. | ||||
Paul Whitehead | Jointly and primarily responsible for the day‑to‑day management of each Fund’s portfolio, including setting the Fund’s overall investment strategy and overseeing the management of the Fund. | 2023 | Managing Director of BlackRock, Inc. since 2010; Director of BlackRock, Inc. from 2009 to 2010; Principal of BGI from 2002 to 2009. |
1 |
Mr. Savage
has been managing the LifePath Index 2065 Fund since its inception in
2019. |
∎ |
Supervises
the Funds’ administrative operations; |
∎ |
Provides
or causes to be provided management reporting and treasury administration
services; |
∎ |
Financial
reporting; |
∎ |
Legal,
blue sky and tax services; |
∎ |
Preparation
of proxy statements and shareholder reports; and
|
∎ |
Engaging
and supervising the shareholder servicing agents on behalf of the Funds.
|
BUYING A DIVIDEND |
Unless your investment is in a tax-deferred account, you may want to avoid buying shares shortly before each Fund pays a dividend. The reason? If you buy shares when a Fund has declared but not yet distributed ordinary income or capital gains, you will pay the full price for the shares and then receive a portion of the price back in the form of a taxable dividend. Before investing you may want to consult your tax adviser. |
Institutional | ||||||||||||||||||||
(For a share outstanding throughout each period) | Year Ended 12/31/23 |
Year Ended 12/31/22 |
Year Ended 12/31/21 |
Year Ended 12/31/20 |
Year Ended 12/31/19 |
|||||||||||||||
Net
asset value, beginning of year |
$ | 12.20 | $ | 14.79 | $ | 14.24 | $ | 13.05 | $ | 11.55 | ||||||||||
Net
investment income(a)
|
0.34 | 0.31 | 0.31 | 0.26 | 0.37 | |||||||||||||||
Net
realized and unrealized gain (loss) |
1.05 | (2.57 | ) | 0.66 | 1.30 | 1.44 | ||||||||||||||
Net
increase (decrease) from investment operations |
1.39 | (2.26 | ) | 0.97 | 1.56 | 1.81 | ||||||||||||||
Distributions(b) |
||||||||||||||||||||
From
net investment income |
(0.35 | ) | (0.31 | ) | (0.31 | ) | (0.27 | ) | (0.30 | ) | ||||||||||
From
net realized gain |
— | (0.02 | ) | (0.11 | ) | (0.10 | ) | (0.01 | ) | |||||||||||
Total
distributions |
(0.35 | ) | (0.33 | ) | (0.42 | ) | (0.37 | ) | (0.31 | ) | ||||||||||
Net
asset value, end of year |
$ | 13.24 | $ | 12.20 | $ | 14.79 | $ | 14.24 | $ | 13.05 | ||||||||||
Total
Return(c) |
||||||||||||||||||||
Based
on net asset value |
11.49 | % | (15.31 | )% | 6.86 | % | 12.16 | % | 15.84 | % | ||||||||||
Ratios
to Average Net Assets(d)
|
||||||||||||||||||||
Total
expenses |
0.15 | % | 0.16 | % | 0.17 | % | 0.18 | % | 0.17 | %(e) | ||||||||||
Total
expenses after fees waived and/or reimbursed |
0.11 | % | 0.11 | % | 0.11 | % | 0.11 | % | 0.12 | %(e) | ||||||||||
Net
investment income |
2.67 | % | 2.35 | % | 2.11 | % | 1.98 | % | 2.92 | % | ||||||||||
Supplemental
Data |
||||||||||||||||||||
Net
assets, end of year (000) |
$ | 375,484 | $ | 380,959 | $ | 533,068 | $ | 546,055 | $ | 532,913 | ||||||||||
Portfolio
turnover rate |
16 | %(f) | 71 | %(f) | 9 | %(f) | 20 | %(g) | 13 | %(h) | ||||||||||
(a) Based on average
shares outstanding.
(b) Distributions for
annual periods determined in accordance with U.S. federal income tax
regulations.
(c) Where applicable,
assumes the reinvestment of distributions.
(d) Excludes fees and
expenses incurred indirectly as a result of investments in underlying
funds.
(e) Includes
reorganization cost. Without this cost, total expenses and total expenses
after fees waived and/or reimbursed would have been 0.17% and 0.12%,
respectively.
(f) Includes the
purchases and sales of the underlying funds and the Underlying Master
Portfolios.
(g) From
January 1, 2020 through March 1, 2020, the rate includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and the Underlying Master Portfolios. Beginning March 2, 2020,
the rate includes the LifePath Index Fund’s purchases and sales of the
underlying funds and the Underlying Master Portfolios.
(h) Includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and Large Cap Index Master Portfolio, Master Small Cap Index Series,
Total International ex U.S. Index Master Portfolio and U.S. Total Bond
Index Master Portfolio. |
|
Investor A | ||||||||||||||||||||
(For a share outstanding throughout each period) | Year Ended 12/31/23 |
Year Ended 12/31/22 |
Year Ended 12/31/21 |
Year Ended 12/31/20 |
Year Ended 12/31/19 |
|||||||||||||||
Net
asset value, beginning of year |
$ | 12.19 | $ | 14.77 | $ | 14.22 | $ | 13.04 | $ | 11.54 | ||||||||||
Net
investment income(a)
|
0.30 | 0.27 | 0.27 | 0.23 | 0.34 | |||||||||||||||
Net
realized and unrealized gain (loss) |
1.05 | (2.55 | ) | 0.67 | 1.29 | 1.45 | ||||||||||||||
Net
increase (decrease) from investment operations |
1.35 | (2.28 | ) | 0.94 | 1.52 | 1.79 | ||||||||||||||
Distributions(b) |
||||||||||||||||||||
From
net investment income |
(0.31 | ) | (0.28 | ) | (0.28 | ) | (0.24 | ) | (0.28 | ) | ||||||||||
From
net realized gain |
— | (0.02 | ) | (0.11 | ) | (0.10 | ) | (0.01 | ) | |||||||||||
Total
distributions |
(0.31 | ) | (0.30 | ) | (0.39 | ) | (0.34 | ) | (0.29 | ) | ||||||||||
Net
asset value, end of year |
$ | 13.23 | $ | 12.19 | $ | 14.77 | $ | 14.22 | $ | 13.04 | ||||||||||
Total
Return(c) |
||||||||||||||||||||
Based
on net asset value |
11.22 | % | (15.48 | )% | 6.60 | % | 11.81 | % | 15.60 | % | ||||||||||
Ratios
to Average Net Assets(d)
|
||||||||||||||||||||
Total
expenses |
0.40 | % | 0.41 | % | 0.42 | % | 0.43 | % | 0.47 | %(e) | ||||||||||
Total
expenses after fees waived and/or reimbursed |
0.36 | % | 0.36 | % | 0.36 | % | 0.36 | % | 0.37 | %(e) | ||||||||||
Net
investment income |
2.40 | % | 2.10 | % | 1.85 | % | 1.72 | % | 2.67 | % | ||||||||||
Supplemental
Data |
||||||||||||||||||||
Net
assets, end of year (000) |
$ | 148,579 | $ | 171,553 | $ | 232,876 | $ | 256,714 | $ | 306,254 | ||||||||||
Portfolio
turnover rate |
16 | %(f) | 71 | %(f) | 9 | %(f) | 20 | %(g) | 13 | %(h) | ||||||||||
(a) Based on average
shares outstanding.
(b) Distributions for
annual periods determined in accordance with U.S. federal income tax
regulations.
(c) Where applicable,
assumes the reinvestment of distributions.
(d) Excludes fees and
expenses incurred indirectly as a result of investments in underlying
funds.
(e) Includes
reorganization cost. Without this cost, total expenses and total expenses
after fees waived and/or reimbursed would have been 0.47% and 0.37%,
respectively.
(f) Includes the
purchases and sales of the underlying funds and the Underlying Master
Portfolios.
(g) From
January 1, 2020 through March 1, 2020, the rate includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and the Underlying Master Portfolios. Beginning March 2, 2020,
the rate includes the LifePath Index Fund’s purchases and sales of the
underlying funds and the Underlying Master Portfolios.
(h) Includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and Large Cap Index Master Portfolio, Master Small Cap Index Series,
Total International ex U.S. Index Master Portfolio and U.S. Total Bond
Index Master Portfolio. |
|
Institutional | ||||||||||||||||||||
(For a share outstanding throughout each period) | Year Ended 12/31/23 |
Year Ended 12/31/22 |
Year Ended 12/31/21 |
Year Ended 12/31/20 |
Year Ended 12/31/19 |
|||||||||||||||
Net
asset value, beginning of year |
$ | 13.64 | $ | 16.61 | $ | 15.64 | $ | 14.24 | $ | 12.35 | ||||||||||
Net
investment income(a)
|
0.38 | 0.34 | 0.35 | 0.28 | 0.37 | |||||||||||||||
Net
realized and unrealized gain (loss) |
1.29 | (2.96 | ) | 1.03 | 1.46 | 1.94 | ||||||||||||||
Net
increase (decrease) from investment operations |
1.67 | (2.62 | ) | 1.38 | 1.74 | 2.31 | ||||||||||||||
Distributions(b) |
||||||||||||||||||||
From
net investment income |
(0.39 | ) | (0.34 | ) | (0.34 | ) | (0.28 | ) | (0.36 | ) | ||||||||||
From
net realized gain |
— | (0.01 | ) | (0.07 | ) | (0.06 | ) | (0.06 | ) | |||||||||||
Total
distributions |
(0.39 | ) | (0.35 | ) | (0.41 | ) | (0.34 | ) | (0.42 | ) | ||||||||||
Net
asset value, end of year |
$ | 14.92 | $ | 13.64 | $ | 16.61 | $ | 15.64 | $ | 14.24 | ||||||||||
Total
Return(c) |
||||||||||||||||||||
Based
on net asset value |
12.34 | % | (15.81 | )% | 8.89 | % | 12.44 | % | 18.84 | % | ||||||||||
Ratios
to Average Net Assets(d)
|
||||||||||||||||||||
Total
expenses |
0.15 | % | 0.16 | % | 0.17 | % | 0.17 | % | 0.16 | % | ||||||||||
Total
expenses after fees waived and/or reimbursed |
0.11 | % | 0.11 | % | 0.11 | % | 0.10 | % | 0.11 | % | ||||||||||
Net
investment income |
2.67 | % | 2.35 | % | 2.12 | % | 1.94 | % | 2.69 | % | ||||||||||
Supplemental
Data |
||||||||||||||||||||
Net
assets, end of year (000) |
$ | 193,923 | $ | 183,575 | $ | 227,070 | $ | 220,702 | $ | 189,202 | ||||||||||
Portfolio
turnover rate |
16 | %(e) | 64 | %(e) | 11 | %(e) | 16 | %(f) | 11 | %(g) | ||||||||||
(a) Based on average
shares outstanding.
(b) Distributions for
annual periods determined in accordance with U.S. federal income tax
regulations.
(c) Where applicable,
assumes the reinvestment of distributions.
(d) Excludes fees and
expenses incurred indirectly as a result of investments in underlying
funds.
(e) Includes the
purchases and sales of the underlying funds and the Underlying Master
Portfolios.
(f) From
January 1, 2020 through March 1, 2020, the rate includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and the Underlying Master Portfolios. Beginning March 2, 2020,
the rate includes the LifePath Index Fund’s purchases and sales of the
underlying funds and the Underlying Master Portfolios.
(g) Includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and Large Cap Index Master Portfolio, Master Small Cap Index Series,
Total International ex U.S. Index Master Portfolio and U.S. Total Bond
Index Master Portfolio. |
|
Investor A | ||||||||||||||||||||
(For a share outstanding throughout each period) | Year Ended 12/31/23 |
Year Ended 12/31/22 |
Year Ended 12/31/21 |
Year Ended 12/31/20 |
Year Ended 12/31/19 |
|||||||||||||||
Net
asset value, beginning of year |
$ | 13.62 | $ | 16.58 | $ | 15.62 | $ | 14.22 | $ | 12.33 | ||||||||||
Net
investment income(a)
|
0.34 | 0.30 | 0.30 | 0.24 | 0.32 | |||||||||||||||
Net
realized and unrealized gain (loss) |
1.29 | (2.95 | ) | 1.03 | 1.47 | 1.96 | ||||||||||||||
Net
increase (decrease) from investment operations |
1.63 | (2.65 | ) | 1.33 | 1.71 | 2.28 | ||||||||||||||
Distributions(b) |
||||||||||||||||||||
From
net investment income |
(0.35 | ) | (0.30 | ) | (0.30 | ) | (0.25 | ) | (0.33 | ) | ||||||||||
From
net realized gain |
— | (0.01 | ) | (0.07 | ) | (0.06 | ) | (0.06 | ) | |||||||||||
Total
distributions |
(0.35 | ) | (0.31 | ) | (0.37 | ) | (0.31 | ) | (0.39 | ) | ||||||||||
Net
asset value, end of year |
$ | 14.90 | $ | 13.62 | $ | 16.58 | $ | 15.62 | $ | 14.22 | ||||||||||
Total
Return(c) |
||||||||||||||||||||
Based
on net asset value |
12.07 | % | (16.01 | )% | 8.55 | % | 12.18 | % | 18.59 | % | ||||||||||
Ratios
to Average Net Assets(d)
|
||||||||||||||||||||
Total
expenses |
0.40 | % | 0.41 | % | 0.42 | % | 0.41 | % | 0.42 | % | ||||||||||
Total
expenses after fees waived and/or reimbursed |
0.36 | % | 0.36 | % | 0.36 | % | 0.35 | % | 0.36 | % | ||||||||||
Net
investment income |
2.39 | % | 2.07 | % | 1.84 | % | 1.69 | % | 2.37 | % | ||||||||||
Supplemental
Data |
||||||||||||||||||||
Net
assets, end of year (000) |
$ | 89,103 | $ | 105,643 | $ | 148,954 | $ | 167,418 | $ | 157,606 | ||||||||||
Portfolio
turnover rate |
16 | %(e) | 64 | %(e) | 11 | %(e) | 16 | %(f) | 11 | %(g) | ||||||||||
(a) Based on average
shares outstanding.
(b) Distributions for
annual periods determined in accordance with U.S. federal income tax
regulations.
(c) Where applicable,
assumes the reinvestment of distributions.
(d) Excludes fees and
expenses incurred indirectly as a result of investments in underlying
funds.
(e) Includes the
purchases and sales of the underlying funds and the Underlying Master
Portfolios.
(f) From
January 1, 2020 through March 1, 2020, the rate includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and the Underlying Master Portfolios. Beginning March 2, 2020,
the rate includes the LifePath Index Fund’s purchases and sales of the
underlying funds and the Underlying Master Portfolios.
(g) Includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and Large Cap Index Master Portfolio, Master Small Cap Index Series,
Total International ex U.S. Index Master Portfolio and U.S. Total Bond
Index Master Portfolio. |
|
Institutional | ||||||||||||||||||||||
(For a share outstanding throughout each period) | Year Ended 12/31/23 |
Year Ended 12/31/22 |
Year Ended 12/31/21 |
Year Ended 12/31/20 |
Year Ended 12/31/19 |
|||||||||||||||||
Net
asset value, beginning of year |
$ | 14.40 | $ | 17.68 | $ | 16.30 | $ | 14.72 | $ | 12.57 | ||||||||||||
Net
investment income(a)
|
0.40 | 0.35 | 0.37 | 0.28 | 0.37 | |||||||||||||||||
Net
realized and unrealized gain (loss) |
1.68 | (3.27 | ) | 1.47 | 1.60 | 2.25 | ||||||||||||||||
Net
increase (decrease) from investment operations |
2.08 | (2.92 | ) | 1.84 | 1.88 | 2.62 | ||||||||||||||||
Distributions(b) |
||||||||||||||||||||||
From
net investment income |
(0.40 | ) | (0.34 | ) | (0.37 | ) | (0.28 | ) | (0.38 | ) | ||||||||||||
From
net realized gain |
— | (0.02 | ) | (0.09 | ) | (0.02 | ) | (0.09 | ) | |||||||||||||
Total
distributions |
(0.40 | ) | (0.36 | ) | (0.46 | ) | (0.30 | ) | (0.47 | ) | ||||||||||||
Net
asset value, end of year |
$ | 16.08 | $ | 14.40 | $ | 17.68 | $ | 16.30 | $ | 14.72 | ||||||||||||
Total
Return(c) |
| |||||||||||||||||||||
Based
on net asset value |
14.58 | % | (16.49 | )% | 11.35 | % | 13.05 | % | 21.00 | % | ||||||||||||
Ratios
to Average Net Assets(d)
|
| |||||||||||||||||||||
Total
expenses |
0.15 | % | 0.16 | % | 0.16 | % | 0.16 | % | 0.17 | % | ||||||||||||
Total
expenses after fees waived and/or reimbursed |
0.11 | % | 0.11 | % | 0.10 | % | 0.10 | % | 0.11 | % | ||||||||||||
Net
investment income |
2.60 | % | 2.26 | % | 2.14 | % | 1.91 | % | 2.66 | % | ||||||||||||
Supplemental
Data |
| |||||||||||||||||||||
Net
assets, end of year (000) |
$ | 555,486 | $ | 504,974 | $ | 661,550 | $ | 610,774 | $ | 561,902 | ||||||||||||
Portfolio
turnover rate |
10 | %(e) | 50 | %(e) | 9 | %(e) | 14 | %(f) | 14 | %(g) | ||||||||||||
(a) Based on average
shares outstanding.
(b) Distributions for
annual periods determined in accordance with U.S. federal income tax
regulations.
(c) Where applicable,
assumes the reinvestment of distributions.
(d) Excludes fees and
expenses incurred indirectly as a result of investments in underlying
funds.
(e) Includes the
purchases and sales of the underlying funds and the Underlying Master
Portfolios.
(f) From
January 1, 2020 through March 1, 2020, the rate includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and the Underlying Master Portfolios. Beginning March 2, 2020,
the rate includes the LifePath Index Fund’s purchases and sales of the
underlying funds and the Underlying Master Portfolios.
(g) Includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and Large Cap Index Master Portfolio, Master Small Cap Index Series,
Total International ex U.S. Index Master Portfolio and U.S. Total Bond
Index Master Portfolio. |
|
Investor A | ||||||||||||||||||||||
(For a share outstanding throughout each period) | Year Ended 12/31/23 |
Year Ended 12/31/22 |
Year Ended 12/31/21 |
Year Ended 12/31/20 |
Year Ended 12/31/19 |
|||||||||||||||||
Net
asset value, beginning of year |
$ | 14.40 | $ | 17.68 | $ | 16.29 | $ | 14.72 | $ | 12.56 | ||||||||||||
Net
investment income(a)
|
0.35 | 0.31 | 0.32 | 0.24 | 0.33 | |||||||||||||||||
Net
realized and unrealized gain (loss) |
1.69 | (3.27 | ) | 1.48 | 1.60 | 2.26 | ||||||||||||||||
Net
increase (decrease) from investment operations |
2.04 | (2.96 | ) | 1.80 | 1.84 | 2.59 | ||||||||||||||||
Distributions(b) |
||||||||||||||||||||||
From
net investment income |
(0.36 | ) | (0.30 | ) | (0.32 | ) | (0.25 | ) | (0.34 | ) | ||||||||||||
From
net realized gain |
— | (0.02 | ) | (0.09 | ) | (0.02 | ) | (0.09 | ) | |||||||||||||
Total
distributions |
(0.36 | ) | (0.32 | ) | (0.41 | ) | (0.27 | ) | (0.43 | ) | ||||||||||||
Net
asset value, end of year |
$ | 16.08 | $ | 14.40 | $ | 17.68 | $ | 16.29 | $ | 14.72 | ||||||||||||
Total
Return(c) |
| |||||||||||||||||||||
Based
on net asset value |
14.29 | % | (16.71 | )% | 11.13 | % | 12.70 | % | 20.81 | % | ||||||||||||
Ratios
to Average Net Assets(d)
|
| |||||||||||||||||||||
Total
expenses |
0.40 | % | 0.41 | % | 0.41 | % | 0.42 | % | 0.47 | % | ||||||||||||
Total
expenses after fees waived and/or reimbursed |
0.36 | % | 0.35 | % | 0.35 | % | 0.35 | % | 0.36 | % | ||||||||||||
Net
investment income |
2.33 | % | 1.99 | % | 1.85 | % | 1.65 | % | 2.36 | % | ||||||||||||
Supplemental
Data |
| |||||||||||||||||||||
Net
assets, end of year (000) |
$ | 175,082 | $ | 180,699 | $ | 235,293 | $ | 251,040 | $ | 343,033 | ||||||||||||
Portfolio
turnover rate |
10 | %(e) | 50 | %(e) | 9 | %(e) | 14 | %(f) | 14 | %(g) | ||||||||||||
(a) Based on average
shares outstanding.
(b) Distributions for
annual periods determined in accordance with U.S. federal income tax
regulations.
(c) Where applicable,
assumes the reinvestment of distributions.
(d) Excludes fees and
expenses incurred indirectly as a result of investments in underlying
funds.
(e) Includes the
purchases and sales of the underlying funds and the Underlying Master
Portfolios.
(f) From
January 1, 2020 through March 1, 2020, the rate includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and the Underlying Master Portfolios. Beginning March 2, 2020,
the rate includes the LifePath Index Fund’s purchases and sales of the
underlying funds and the Underlying Master Portfolios.
(g) Includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and Large Cap Index Master Portfolio, Master Small Cap Index Series,
Total International ex U.S. Index Master Portfolio and U.S. Total Bond
Index Master Portfolio. |
|
Institutional | ||||||||||||||||||||||
(For a share outstanding throughout each period) | Year Ended 12/31/23 |
Year Ended 12/31/22 |
Year Ended 12/31/21 |
Year Ended 12/31/20 |
Year Ended 12/31/19 |
|||||||||||||||||
Net
asset value, beginning of year |
$ | 15.36 | $ | 18.96 | $ | 17.07 | $ | 15.33 | $ | 12.88 | ||||||||||||
Net
investment income(a)
|
0.41 | 0.36 | 0.40 | 0.28 | 0.40 | |||||||||||||||||
Net
realized and unrealized gain (loss) |
2.10 | (3.59 | ) | 1.94 | 1.76 | 2.55 | ||||||||||||||||
Net
increase (decrease) from investment operations |
2.51 | (3.23 | ) | 2.34 | 2.04 | 2.95 | ||||||||||||||||
Distributions(b) |
||||||||||||||||||||||
From
net investment income |
(0.41 | ) | (0.35 | ) | (0.39 | ) | (0.28 | ) | (0.39 | ) | ||||||||||||
From
net realized gain |
— | (0.02 | ) | (0.06 | ) | (0.02 | ) | (0.11 | ) | |||||||||||||
Total
distributions |
(0.41 | ) | (0.37 | ) | (0.45 | ) | (0.30 | ) | (0.50 | ) | ||||||||||||
Net
asset value, end of year |
$ | 17.46 | $ | 15.36 | $ | 18.96 | $ | 17.07 | $ | 15.33 | ||||||||||||
Total
Return(c) |
| |||||||||||||||||||||
Based
on net asset value |
16.51 | % | (17.06 | )% | 13.78 | % | 13.58 | % | 23.08 | % | ||||||||||||
Ratios
to Average Net Assets(d)
|
| |||||||||||||||||||||
Total
expenses |
0.16 | % | 0.16 | % | 0.16 | % | 0.16 | % | 0.15 | % | ||||||||||||
Total
expenses after fees waived and/or reimbursed |
0.11 | % | 0.10 | % | 0.10 | % | 0.10 | % | 0.10 | % | ||||||||||||
Net
investment income |
2.53 | % | 2.18 | % | 2.17 | % | 1.89 | % | 2.73 | % | ||||||||||||
Supplemental
Data |
| |||||||||||||||||||||
Net
assets, end of year (000) |
$ | 210,653 | $ | 176,179 | $ | 197,919 | $ | 164,602 | $ | 148,827 | ||||||||||||
Portfolio
turnover rate |
8 | %(e) | 39 | %(e) | 9 | %(e) | 10 | %(f) | 13 | %(g) | ||||||||||||
(a) Based on average
shares outstanding.
(b) Distributions for
annual periods determined in accordance with U.S. federal income tax
regulations.
(c) Where applicable,
assumes the reinvestment of distributions.
(d) Excludes fees and
expenses incurred indirectly as a result of investments in underlying
funds.
(e) Includes the
purchases and sales of the underlying funds and the Underlying Master
Portfolios.
(f) From
January 1, 2020 through March 1, 2020, the rate includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and the Underlying Master Portfolios. Beginning March 2, 2020,
the rate includes the LifePath Index Fund’s purchases and sales of the
underlying funds and the Underlying Master Portfolios.
(g) Includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and Large Cap Index Master Portfolio, Master Small Cap Index Series,
Total International ex U.S. Index Master Portfolio and U.S. Total Bond
Index Master Portfolio. |
|
Investor A | ||||||||||||||||||||||
(For a share outstanding throughout each period) | Year Ended 12/31/23 |
Year Ended 12/31/22 |
Year Ended 12/31/21 |
Year Ended 12/31/20 |
Year Ended 12/31/19 |
|||||||||||||||||
Net
asset value, beginning of year |
$ | 15.32 | $ | 18.91 | $ | 17.03 | $ | 15.29 | $ | 12.85 | ||||||||||||
Net
investment income(a)
|
0.37 | 0.31 | 0.34 | 0.25 | 0.35 | |||||||||||||||||
Net
realized and unrealized gain (loss) |
2.10 | (3.57 | ) | 1.94 | 1.76 | 2.56 | ||||||||||||||||
Net
increase (decrease) from investment operations |
2.47 | (3.26 | ) | 2.28 | 2.01 | 2.91 | ||||||||||||||||
Distributions(b) |
||||||||||||||||||||||
From
net investment income |
(0.37 | ) | (0.31 | ) | (0.34 | ) | (0.25 | ) | (0.36 | ) | ||||||||||||
From
net realized gain |
— | (0.02 | ) | (0.06 | ) | (0.02 | ) | (0.11 | ) | |||||||||||||
Total
distributions |
(0.37 | ) | (0.33 | ) | (0.40 | ) | (0.27 | ) | (0.47 | ) | ||||||||||||
Net
asset value, end of year |
$ | 17.42 | $ | 15.32 | $ | 18.91 | $ | 17.03 | $ | 15.29 | ||||||||||||
Total
Return(c) |
| |||||||||||||||||||||
Based
on net asset value |
16.26 | % | (17.27 | )% | 13.46 | % | 13.34 | % | 22.77 | % | ||||||||||||
Ratios
to Average Net Assets(d)
|
| |||||||||||||||||||||
Total
expenses |
0.41 | % | 0.41 | % | 0.41 | % | 0.41 | % | 0.41 | % | ||||||||||||
Total
expenses after fees waived and/or reimbursed |
0.36 | % | 0.35 | % | 0.35 | % | 0.35 | % | 0.35 | % | ||||||||||||
Net
investment income |
2.26 | % | 1.91 | % | 1.83 | % | 1.64 | % | 2.45 | % | ||||||||||||
Supplemental
Data |
| |||||||||||||||||||||
Net
assets, end of year (000) |
$ | 128,043 | $ | 119,861 | $ | 154,072 | $ | 168,305 | $ | 158,773 | ||||||||||||
Portfolio
turnover rate |
8 | %(e) | 39 | %(e) | 9 | %(e) | 10 | %(f) | 13 | %(g) | ||||||||||||
(a) Based on average
shares outstanding.
(b) Distributions for
annual periods determined in accordance with U.S. federal income tax
regulations.
(c) Where applicable,
assumes the reinvestment of distributions.
(d) Excludes fees and
expenses incurred indirectly as a result of investments in underlying
funds.
(e) Includes the
purchases and sales of the underlying funds and the Underlying Master
Portfolios.
(f) From
January 1, 2020 through March 1, 2020, the rate includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and the Underlying Master Portfolios. Beginning March 2, 2020,
the rate includes the LifePath Index Fund’s purchases and sales of the
underlying funds and the Underlying Master Portfolios.
(g) Includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and Large Cap Index Master Portfolio, Master Small Cap Index Series,
Total International ex U.S. Index Master Portfolio and U.S. Total Bond
Index Master Portfolio. |
|
Institutional | ||||||||||||||||||||
(For a share outstanding throughout each period) | Year Ended 12/31/23 |
Year Ended 12/31/22 |
Year Ended 12/31/21 |
Year Ended 12/31/20 |
Year Ended 12/31/19 |
|||||||||||||||
Net
asset value, beginning of year |
$ | 16.08 | $ | 19.99 | $ | 17.66 | $ | 15.78 | $ | 13.07 | ||||||||||
Net
investment income(a)
|
0.42 | 0.35 | 0.41 | 0.29 | 0.40 | |||||||||||||||
Net
realized and unrealized gain (loss) |
2.53 | (3.89 | ) | 2.40 | 1.89 | 2.84 | ||||||||||||||
Net
increase (decrease) from investment operations |
2.95 | (3.54 | ) | 2.81 | 2.18 | 3.24 | ||||||||||||||
Distributions(b) |
||||||||||||||||||||
From
net investment income |
(0.42 | ) | (0.35 | ) | (0.41 | ) | (0.29 | ) | (0.42 | ) | ||||||||||
From
net realized gain |
— | (0.02 | ) | (0.07 | ) | (0.01 | ) | (0.11 | ) | |||||||||||
Total
distributions |
(0.42 | ) | (0.37 | ) | (0.48 | ) | (0.30 | ) | (0.53 | ) | ||||||||||
Net
asset value, end of year |
$ | 18.61 | $ | 16.08 | $ | 19.99 | $ | 17.66 | $ | 15.78 | ||||||||||
Total
Return(c) |
||||||||||||||||||||
Based
on net asset value |
18.52 | % | (17.70 | )% | 15.99 | % | 14.04 | % | 24.95 | % | ||||||||||
Ratios
to Average Net Assets(d)
|
||||||||||||||||||||
Total
expenses |
0.16 | % | 0.16 | % | 0.16 | % | 0.16 | % | 0.17 | % | ||||||||||
Total
expenses after fees waived and/or reimbursed |
0.11 | % | 0.10 | % | 0.10 | % | 0.10 | % | 0.10 | % | ||||||||||
Net
investment income |
2.44 | % | 2.05 | % | 2.14 | % | 1.87 | % | 2.67 | % | ||||||||||
Supplemental
Data |
||||||||||||||||||||
Net
assets, end of year (000) |
$ | 707,256 | $ | 592,121 | $ | 733,350 | $ | 646,477 | $ | 577,303 | ||||||||||
Portfolio
turnover rate |
7 | %(e) | 29 | %(e) | 7 | %(e) | 9 | %(f) | 14 | %(g) | ||||||||||
(a) Based on average
shares outstanding.
(b) Distributions for
annual periods determined in accordance with U.S. federal income tax
regulations.
(c) Where applicable,
assumes the reinvestment of distributions.
(d) Excludes fees and
expenses incurred indirectly as a result of investments in underlying
funds.
(e) Includes the
purchases and sales of the underlying funds and the Underlying Master
Portfolios.
(f) From
January 1, 2020 through March 1, 2020, the rate includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and the Underlying Master Portfolios. Beginning March 2, 2020,
the rate includes the LifePath Index Fund’s purchases and sales of the
underlying funds and the Underlying Master Portfolios.
(g) Includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and Large Cap Index Master Portfolio, Master Small Cap Index Series,
Total International ex U.S. Index Master Portfolio and U.S. Total Bond
Index Master Portfolio. |
|
Investor A | ||||||||||||||||||||
(For a share outstanding throughout each period) | Year Ended 12/31/23 |
Year Ended 12/31/22 |
Year Ended 12/31/21 |
Year Ended 12/31/20 |
Year Ended 12/31/19 |
|||||||||||||||
Net
asset value, beginning of year |
$ | 16.05 | $ | 19.95 | $ | 17.63 | $ | 15.75 | $ | 13.05 | ||||||||||
Net
investment income(a)
|
0.38 | 0.30 | 0.35 | 0.25 | 0.36 | |||||||||||||||
Net
realized and unrealized gain (loss) |
2.52 | (3.88 | ) | 2.40 | 1.89 | 2.83 | ||||||||||||||
Net
increase (decrease) from investment operations |
2.90 | (3.58 | ) | 2.75 | 2.14 | 3.19 | ||||||||||||||
Distributions(b) |
||||||||||||||||||||
From
net investment income |
(0.38 | ) | (0.30 | ) | (0.36 | ) | (0.25 | ) | (0.38 | ) | ||||||||||
From
net realized gain |
— | (0.02 | ) | (0.07 | ) | (0.01 | ) | (0.11 | ) | |||||||||||
Total
distributions |
(0.38 | ) | (0.32 | ) | (0.43 | ) | (0.26 | ) | (0.49 | ) | ||||||||||
Net
asset value, end of year |
$ | 18.57 | $ | 16.05 | $ | 19.95 | $ | 17.63 | $ | 15.75 | ||||||||||
Total
Return(c) |
||||||||||||||||||||
Based
on net asset value |
18.20 | % | (17.90 | )% | 15.67 | % | 13.78 | % | 24.62 | % | ||||||||||
Ratios
to Average Net Assets(d)
|
||||||||||||||||||||
Total
expenses |
0.41 | % | 0.41 | % | 0.41 | % | 0.42 | % | 0.45 | % | ||||||||||
Total
expenses after fees waived and/or reimbursed |
0.36 | % | 0.35 | % | 0.35 | % | 0.35 | % | 0.35 | % | ||||||||||
Net
investment income |
2.17 | % | 1.77 | % | 1.84 | % | 1.61 | % | 2.45 | % | ||||||||||
Supplemental
Data |
||||||||||||||||||||
Net
assets, end of year (000) |
$ | 147,637 | $ | 138,977 | $ | 179,444 | $ | 176,175 | $ | 240,112 | ||||||||||
Portfolio
turnover rate |
7 | %(e) | 29 | %(e) | 7 | %(e) | 9 | %(f) | 14 | %(g) | ||||||||||
(a) Based on average
shares outstanding.
(b) Distributions for
annual periods determined in accordance with U.S. federal income tax
regulations.
(c) Where applicable,
assumes the reinvestment of distributions.
(d) Excludes fees and
expenses incurred indirectly as a result of investments in underlying
funds.
(e) Includes the
purchases and sales of the underlying funds and the Underlying Master
Portfolios.
(f) From
January 1, 2020 through March 1, 2020, the rate includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and the Underlying Master Portfolios. Beginning March 2, 2020,
the rate includes the LifePath Index Fund’s purchases and sales of the
underlying funds and the Underlying Master Portfolios.
(g) Includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and Large Cap Index Master Portfolio, Master Small Cap Index Series,
Total International ex U.S. Index Master Portfolio and U.S. Total Bond
Index Master Portfolio. |
|
Institutional | ||||||||||||||||||||
(For a share outstanding throughout each period) | Year Ended 12/31/23 |
Year Ended 12/31/22 |
Year Ended 12/31/21 |
Year Ended 12/31/20 |
Year Ended 12/31/19 |
|||||||||||||||
Net
asset value, beginning of year |
$ | 16.89 | $ | 21.04 | $ | 18.29 | $ | 16.25 | $ | 13.33 | ||||||||||
Net
investment income(a)
|
0.43 | 0.35 | 0.43 | 0.29 | 0.42 | |||||||||||||||
Net
realized and unrealized gain (loss) |
2.96 | (4.16 | ) | 2.81 | 2.05 | 3.04 | ||||||||||||||
Net
increase (decrease) from investment operations |
3.39 | (3.81 | ) | 3.24 | 2.34 | 3.46 | ||||||||||||||
Distributions(b) |
||||||||||||||||||||
From
net investment income |
(0.43 | ) | (0.34 | ) | (0.43 | ) | (0.29 | ) | (0.43 | ) | ||||||||||
From
net realized gain |
— | (0.00 | )(c) | (0.06 | ) | (0.01 | ) | (0.11 | ) | |||||||||||
Total
distributions |
(0.43 | ) | (0.34 | ) | (0.49 | ) | (0.30 | ) | (0.54 | ) | ||||||||||
Net
asset value, end of year |
$ | 19.85 | $ | 16.89 | $ | 21.04 | $ | 18.29 | $ | 16.25 | ||||||||||
Total
Return(d) |
||||||||||||||||||||
Based
on net asset value |
20.24 | % | (18.10 | )% | 17.76 | % | 14.67 | % | 26.14 | % | ||||||||||
Ratios
to Average Net Assets(e)
|
||||||||||||||||||||
Total
expenses |
0.16 | % | 0.16 | % | 0.16 | % | 0.16 | % | 0.15 | % | ||||||||||
Total
expenses after fees waived and/or reimbursed |
0.11 | % | 0.10 | % | 0.10 | % | 0.10 | % | 0.10 | % | ||||||||||
Net
investment income |
2.35 | % | 1.94 | % | 2.16 | % | 1.87 | % | 2.78 | % | ||||||||||
Supplemental
Data |
||||||||||||||||||||
Net
assets, end of year (000) |
$ | 171,849 | $ | 146,616 | $ | 159,947 | $ | 132,688 | $ | 116,727 | ||||||||||
Portfolio
turnover rate |
6 | %(f) | 16 | %(f) | 7 | %(f) | 7 | %(g) | 12 | %(h) | ||||||||||
(a) Based on average
shares outstanding.
(b) Distributions for
annual periods determined in accordance with U.S. federal income tax
regulations.
(c) Amount is greater
than $(0.005) per share.
(d) Where applicable,
assumes the reinvestment of distributions.
(e) Excludes fees and
expenses incurred indirectly as a result of investments in underlying
funds.
(f) Includes the
purchases and sales of the underlying funds and the Underlying Master
Portfolios.
(g) From
January 1, 2020 through March 1, 2020, the rate includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and the Underlying Master Portfolios. Beginning March 2, 2020,
the rate includes the LifePath Index Fund’s purchases and sales of the
underlying funds and the Underlying Master Portfolios.
(h) Includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and Large Cap Index Master Portfolio, Master Small Cap Index Series
and U.S. Total Bond Index Master Portfolio. |
|
Investor A | ||||||||||||||||||||
(For a share outstanding throughout each period) | Year Ended 12/31/23 |
Year Ended 12/31/22 |
Year Ended 12/31/21 |
Year Ended 12/31/20 |
Year Ended 12/31/19 |
|||||||||||||||
Net
asset value, beginning of year |
$ | 16.85 | $ | 20.99 | $ | 18.25 | $ | 16.22 | $ | 13.30 | ||||||||||
Net
investment income(a)
|
0.39 | 0.30 | 0.36 | 0.25 | 0.39 | |||||||||||||||
Net
realized and unrealized gain (loss) |
2.95 | (4.15 | ) | 2.81 | 2.04 | 3.03 | ||||||||||||||
Net
increase (decrease) from investment operations |
3.34 | (3.85 | ) | 3.17 | 2.29 | 3.42 | ||||||||||||||
Distributions(b) |
||||||||||||||||||||
From
net investment income |
(0.39 | ) | (0.29 | ) | (0.37 | ) | (0.25 | ) | (0.39 | ) | ||||||||||
From
net realized gain |
— | (0.00 | )(c) | (0.06 | ) | (0.01 | ) | (0.11 | ) | |||||||||||
Total
distributions |
(0.39 | ) | (0.29 | ) | (0.43 | ) | (0.26 | ) | (0.50 | ) | ||||||||||
Net
asset value, end of year |
$ | 19.80 | $ | 16.85 | $ | 20.99 | $ | 18.25 | $ | 16.22 | ||||||||||
Total
Return(d) |
||||||||||||||||||||
Based
on net asset value |
19.93 | % | (18.31 | )% | 17.44 | % | 14.35 | % | 25.91 | % | ||||||||||
Ratios
to Average Net Assets(e)
|
||||||||||||||||||||
Total
expenses |
0.41 | % | 0.41 | % | 0.41 | % | 0.41 | % | 0.41 | % | ||||||||||
Total
expenses after fees waived and/or reimbursed |
0.36 | % | 0.35 | % | 0.35 | % | 0.35 | % | 0.35 | % | ||||||||||
Net
investment income |
2.11 | % | 1.68 | % | 1.81 | % | 1.62 | % | 2.56 | % | ||||||||||
Supplemental
Data |
||||||||||||||||||||
Net
assets, end of year (000) |
$ | 115,975 | $ | 102,379 | $ | 121,865 | $ | 129,106 | $ | 120,718 | ||||||||||
Portfolio
turnover rate |
6 | %(f) | 16 | %(f) | 7 | %(f) | 7 | %(g) | 12 | %(h) | ||||||||||
(a) Based on average
shares outstanding.
(b) Distributions for
annual periods determined in accordance with U.S. federal income tax
regulations.
(c) Amount is greater
than $(0.005) per share.
(d) Where applicable,
assumes the reinvestment of distributions.
(e) Excludes fees and
expenses incurred indirectly as a result of investments in underlying
funds.
(f) Includes the
purchases and sales of the underlying funds and the Underlying Master
Portfolios.
(g) From
January 1, 2020 through March 1, 2020, the rate includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and the Underlying Master Portfolios. Beginning March 2, 2020,
the rate includes the LifePath Index Fund’s purchases and sales of the
underlying funds and the Underlying Master Portfolios.
(h) Includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and Large Cap Index Master Portfolio, Master Small Cap Index Series
and U.S. Total Bond Index Master Portfolio. |
|
Institutional | ||||||||||||||||||||||
(For a share outstanding throughout each period) | Year Ended 12/31/23 |
Year Ended 12/31/22 |
Year Ended 12/31/21 |
Year Ended 12/31/20 |
Year Ended 12/31/19 |
|||||||||||||||||
Net
asset value, beginning of year |
$ | 17.36 | $ | 21.69 | $ | 18.68 | $ | 16.55 | $ | 13.51 | ||||||||||||
Net
investment income(a)
|
0.43 | 0.34 | 0.44 | 0.30 | 0.43 | |||||||||||||||||
Net
realized and unrealized gain (loss) |
3.23 | (4.32 | ) | 3.04 | 2.13 | 3.15 | ||||||||||||||||
Net
increase (decrease) from investment operations |
3.66 | (3.98 | ) | 3.48 | 2.43 | 3.58 | ||||||||||||||||
Distributions(b) |
||||||||||||||||||||||
From
net investment income |
(0.43 | ) | (0.32 | ) | (0.43 | ) | (0.29 | ) | (0.44 | ) | ||||||||||||
From
net realized gain |
— | (0.03 | ) | (0.04 | ) | (0.01 | ) | (0.10 | ) | |||||||||||||
Total
distributions |
(0.43 | ) | (0.35 | ) | (0.47 | ) | (0.30 | ) | (0.54 | ) | ||||||||||||
Net
asset value, end of year |
$ | 20.59 | $ | 17.36 | $ | 21.69 | $ | 18.68 | $ | 16.55 | ||||||||||||
Total
Return(c) |
||||||||||||||||||||||
Based
on net asset value |
21.23 | % | (18.32 | )% | 18.69 | % | 14.98 | % | 26.71 | % | ||||||||||||
Ratios
to Average Net Assets(d)
|
||||||||||||||||||||||
Total
expenses |
0.16 | % | 0.16 | % | 0.16 | % | 0.16 | % | 0.15 | % | ||||||||||||
Total
expenses after fees waived and/or reimbursed |
0.11 | % | 0.10 | % | 0.10 | % | 0.10 | % | 0.10 | % | ||||||||||||
Net
investment income |
2.28 | % | 1.82 | % | 2.14 | % | 1.88 | % | 2.78 | % | ||||||||||||
Supplemental
Data |
||||||||||||||||||||||
Net
assets, end of year (000) |
$ | 174,129 | $ | 132,970 | $ | 161,630 | $ | 132,633 | $ | 111,105 | ||||||||||||
Portfolio
turnover rate |
5 | %(e) | 11 | %(e) | 6 | %(e) | 6 | %(f) | 12 | %(g) | ||||||||||||
(a) Based on average
shares outstanding.
(b) Distributions for
annual periods determined in accordance with U.S. federal income tax
regulations.
(c) Where applicable,
assumes the reinvestment of distributions.
(d) Excludes fees and
expenses incurred indirectly as a result of investments in underlying
funds.
(e) Includes the
purchases and sales of the underlying funds and the Underlying Master
Portfolios.
(f) From
January 1, 2020 through March 1, 2020, the rate includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and the Underlying Master Portfolios. Beginning March 2, 2020,
the rate includes the LifePath Index Fund’s purchases and sales of the
underlying funds and the Underlying Master Portfolios.
(g) Includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and Large Cap Index Master Portfolio, Master Small Cap Index Series,
Total International ex U.S. Index Master Portfolio and U.S. Total Bond
Index Master Portfolio. |
|
Investor A | ||||||||||||||||||||||
(For a share outstanding throughout each period) | Year Ended 12/31/23 |
Year Ended 12/31/22 |
Year Ended 12/31/21 |
Year Ended 12/31/20 |
Year Ended 12/31/19 |
|||||||||||||||||
Net
asset value, beginning of year |
$ | 17.31 | $ | 21.63 | $ | 18.63 | $ | 16.51 | $ | 13.48 | ||||||||||||
Net
investment income(a)
|
0.38 | 0.29 | 0.37 | 0.26 | 0.39 | |||||||||||||||||
Net
realized and unrealized gain (loss) |
3.23 | (4.30 | ) | 3.04 | 2.12 | 3.14 | ||||||||||||||||
Net
increase (decrease) from investment operations |
3.61 | (4.01 | ) | 3.41 | 2.38 | 3.53 | ||||||||||||||||
Distributions(b) |
||||||||||||||||||||||
From
net investment income |
(0.38 | ) | (0.28 | ) | (0.37 | ) | (0.25 | ) | (0.40 | ) | ||||||||||||
From
net realized gain |
— | (0.03 | ) | (0.04 | ) | (0.01 | ) | (0.10 | ) | |||||||||||||
Total
distributions |
(0.38 | ) | (0.31 | ) | (0.41 | ) | (0.26 | ) | (0.50 | ) | ||||||||||||
Net
asset value, end of year |
$ | 20.54 | $ | 17.31 | $ | 21.63 | $ | 18.63 | $ | 16.51 | ||||||||||||
Total
Return(c) |
||||||||||||||||||||||
Based
on net asset value |
21.00 | % | (18.54 | )% | 18.38 | % | 14.67 | % | 26.40 | % | ||||||||||||
Ratios
to Average Net Assets(d)
|
||||||||||||||||||||||
Total
expenses |
0.41 | % | 0.41 | % | 0.41 | % | 0.41 | % | 0.44 | % | ||||||||||||
Total
expenses after fees waived and/or reimbursed |
0.36 | % | 0.35 | % | 0.35 | % | 0.35 | % | 0.35 | % | ||||||||||||
Net
investment income |
2.02 | % | 1.56 | % | 1.81 | % | 1.62 | % | 2.53 | % | ||||||||||||
Supplemental
Data |
||||||||||||||||||||||
Net
assets, end of year (000) |
$ | 117,251 | $ | 102,124 | $ | 119,705 | $ | 112,240 | $ | 138,397 | ||||||||||||
Portfolio
turnover rate |
5 | %(e) | 11 | %(e) | 6 | %(e) | 6 | %(f) | 12 | %(g) | ||||||||||||
(a) Based on average
shares outstanding.
(b) Distributions for
annual periods determined in accordance with U.S. federal income tax
regulations.
(c) Where applicable,
assumes the reinvestment of distributions.
(d) Excludes fees and
expenses incurred indirectly as a result of investments in underlying
funds.
(e) Includes the
purchases and sales of the underlying funds and the Underlying Master
Portfolios.
(f) From
January 1, 2020 through March 1, 2020, the rate includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and the Underlying Master Portfolios. Beginning March 2, 2020,
the rate includes the LifePath Index Fund’s purchases and sales of the
underlying funds and the Underlying Master Portfolios.
(g) Includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and Large Cap Index Master Portfolio, Master Small Cap Index Series,
Total International ex U.S. Index Master Portfolio and U.S. Total Bond
Index Master Portfolio. |
|
Institutional | ||||||||||||||||||||||
(For a share outstanding throughout each period) | Year Ended 12/31/23 |
Year Ended 12/31/22 |
Year Ended 12/31/21 |
Year Ended 12/31/20 |
Year Ended 12/31/19 |
|||||||||||||||||
Net
asset value, beginning of year |
$ | 17.80 | $ | 22.24 | $ | 19.12 | $ | 16.93 | $ | 13.77 | ||||||||||||
Net
investment income(a)
|
0.44 | 0.34 | 0.46 | 0.31 | 0.42 | |||||||||||||||||
Net
realized and unrealized gain (loss) |
3.38 | (4.43 | ) | 3.11 | 2.19 | 3.24 | ||||||||||||||||
Net
increase (decrease) from investment operations |
3.82 | (4.09 | ) | 3.57 | 2.50 | 3.66 | ||||||||||||||||
Distributions(b) |
||||||||||||||||||||||
From
net investment income |
(0.43 | ) | (0.33 | ) | (0.43 | ) | (0.30 | ) | (0.44 | ) | ||||||||||||
From
net realized gain |
— | (0.02 | ) | (0.02 | ) | (0.01 | ) | (0.06 | ) | |||||||||||||
Total
distributions |
(0.43 | ) | (0.35 | ) | (0.45 | ) | (0.31 | ) | (0.50 | ) | ||||||||||||
Net
asset value, end of year |
$ | 21.19 | $ | 17.80 | $ | 22.24 | $ | 19.12 | $ | 16.93 | ||||||||||||
Total
Return(c) |
| |||||||||||||||||||||
Based
on net asset value |
21.61 | % | (18.38 | )% | 18.76 | % | 15.03 | % | 26.75 | % | ||||||||||||
Ratios
to Average Net Assets(d)
|
| |||||||||||||||||||||
Total
expenses |
0.16 | % | 0.16 | % | 0.16 | % | 0.16 | % | 0.16 | % | ||||||||||||
Total
expenses after fees waived and/or reimbursed |
0.11 | % | 0.10 | % | 0.10 | % | 0.09 | % | 0.09 | % | ||||||||||||
Net
investment income |
2.25 | % | 1.79 | % | 2.15 | % | 1.89 | % | 2.70 | % | ||||||||||||
Supplemental
Data |
| |||||||||||||||||||||
Net
assets, end of year (000) |
$ | 144,447 | $ | 111,511 | $ | 114,774 | $ | 89,290 | $ | 76,250 | ||||||||||||
Portfolio
turnover rate |
4 | %(e) | 10 | %(e) | 6 | %(e) | 6 | %(f) | 12 | %(g) | ||||||||||||
(a) Based on average
shares outstanding.
(b) Distributions for
annual periods determined in accordance with U.S. federal income tax
regulations.
(c) Where applicable,
assumes the reinvestment of distributions.
(d) Excludes fees and
expenses incurred indirectly as a result of investments in underlying
funds.
(e) Includes the
purchases and sales of the underlying funds and the Underlying Master
Portfolios.
(f) From
January 1, 2020 through March 1, 2020, the rate includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and the Underlying Master Portfolios. Beginning March 2, 2020,
the rate includes the LifePath Index Fund’s purchases and sales of the
underlying funds and the Underlying Master Portfolios.
(g) Includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and Large Cap Index Master Portfolio, Master Small Cap Index Series,
Total International ex U.S. Index Master Portfolio and U.S. Total Bond
Index Master Portfolio. |
|
Investor A | ||||||||||||||||||||||
(For a share outstanding throughout each period) | Year Ended 12/31/23 |
Year Ended 12/31/22 |
Year Ended 12/31/21 |
Year Ended 12/31/20 |
Year Ended 12/31/19 |
|||||||||||||||||
Net
asset value, beginning of year |
$ | 17.76 | $ | 22.19 | $ | 19.07 | $ | 16.89 | $ | 13.74 | ||||||||||||
Net
investment income(a)
|
0.39 | 0.29 | 0.38 | 0.26 | 0.40 | |||||||||||||||||
Net
realized and unrealized gain (loss) |
3.37 | (4.42 | ) | 3.14 | 2.19 | 3.22 | ||||||||||||||||
Net
increase (decrease) from investment operations |
3.76 | (4.13 | ) | 3.52 | 2.45 | 3.62 | ||||||||||||||||
Distributions(b) |
||||||||||||||||||||||
From
net investment income |
(0.38 | ) | (0.28 | ) | (0.38 | ) | (0.26 | ) | (0.41 | ) | ||||||||||||
From
net realized gain |
— | (0.02 | ) | (0.02 | ) | (0.01 | ) | (0.06 | ) | |||||||||||||
Total
distributions |
(0.38 | ) | (0.30 | ) | (0.40 | ) | (0.27 | ) | (0.47 | ) | ||||||||||||
Net
asset value, end of year |
$ | 21.14 | $ | 17.76 | $ | 22.19 | $ | 19.07 | $ | 16.89 | ||||||||||||
Total
Return(c) |
| |||||||||||||||||||||
Based
on net asset value |
21.31 | % | (18.59 | )% | 18.51 | % | 14.72 | % | 26.46 | % | ||||||||||||
Ratios
to Average Net Assets(d)
|
| |||||||||||||||||||||
Total
expenses |
0.41 | % | 0.41 | % | 0.41 | % | 0.41 | % | 0.43 | % | ||||||||||||
Total
expenses after fees waived and/or reimbursed |
0.36 | % | 0.35 | % | 0.35 | % | 0.34 | % | 0.34 | % | ||||||||||||
Net
investment income |
1.98 | % | 1.53 | % | 1.82 | % | 1.61 | % | 2.57 | % | ||||||||||||
Supplemental
Data |
| |||||||||||||||||||||
Net
assets, end of year (000) |
$ | 85,659 | $ | 72,842 | $ | 84,965 | $ | 78,100 | $ | 78,919 | ||||||||||||
Portfolio
turnover rate |
4 | %(e) | 10 | %(e) | 6 | %(e) | 6 | %(f) | 12 | %(g) | ||||||||||||
(a) Based on average
shares outstanding.
(b) Distributions for
annual periods determined in accordance with U.S. federal income tax
regulations.
(c) Where applicable,
assumes the reinvestment of distributions.
(d) Excludes fees and
expenses incurred indirectly as a result of investments in underlying
funds.
(e) Includes the
purchases and sales of the underlying funds and the Underlying Master
Portfolios.
(f) From
January 1, 2020 through March 1, 2020, the rate includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and the Underlying Master Portfolios. Beginning March 2, 2020,
the rate includes the LifePath Index Fund’s purchases and sales of the
underlying funds and the Underlying Master Portfolios.
(g) Includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and Large Cap Index Master Portfolio, Master Small Cap Index Series,
Total International ex U.S. Index Master Portfolio and U.S. Total Bond
Index Master Portfolio. |
|
Institutional | ||||||||||||||||||||
(For a share outstanding throughout each period) | Year Ended 12/31/23 |
Year Ended 12/31/22 |
Year Ended 12/31/21 |
Year Ended 12/31/20 |
Year Ended 12/31/19 |
|||||||||||||||
Net
asset value, beginning of year |
$ | 15.88 | $ | 19.82 | $ | 17.02 | $ | 15.06 | $ | 12.19 | ||||||||||
Net
investment income(a)
|
0.40 | 0.31 | 0.42 | 0.29 | 0.44 | |||||||||||||||
Net
realized and unrealized gain (loss) |
3.01 | (3.96 | ) | 2.77 | 1.93 | 2.80 | ||||||||||||||
Net
increase (decrease) from investment operations |
3.41 | (3.65 | ) | 3.19 | 2.22 | 3.24 | ||||||||||||||
Distributions
from net investment income(b) |
(0.38 | ) | (0.29 | ) | (0.39 | ) | (0.26 | ) | (0.37 | ) | ||||||||||
Net
asset value, end of year |
$ | 18.91 | $ | 15.88 | $ | 19.82 | $ | 17.02 | $ | 15.06 | ||||||||||
Total
Return(c) |
||||||||||||||||||||
Based
on net asset value |
21.61 | % | (18.42 | )% | 18.81 | % | 15.02 | % | 26.78 | % | ||||||||||
Ratios
to Average Net Assets(d)
|
||||||||||||||||||||
Total
expenses |
0.16 | % | 0.16 | % | 0.16 | % | 0.18 | % | 0.29 | % | ||||||||||
Total
expenses after fees waived and/or reimbursed |
0.11 | % | 0.10 | % | 0.10 | % | 0.09 | % | 0.09 | % | ||||||||||
Net
investment income |
2.28 | % | 1.81 | % | 2.23 | % | 1.96 | % | 3.11 | % | ||||||||||
Supplemental
Data |
||||||||||||||||||||
Net
assets, end of year (000) |
$ | 58,804 | $ | 37,045 | $ | 38,667 | $ | 22,343 | $ | 11,132 | ||||||||||
Portfolio
turnover rate |
3 | %(e) | 9 | %(e) | 6 | %(e) | 6 | %(f) | 11 | %(g) | ||||||||||
(a) Based on average
shares outstanding.
(b) Distributions for
annual periods determined in accordance with U.S. federal income tax
regulations.
(c) Where applicable,
assumes the reinvestment of distributions.
(d) Excludes fees and
expenses incurred indirectly as a result of investments in underlying
funds.
(e) Includes the
purchases and sales of the underlying funds and the Underlying Master
Portfolios.
(f) From
January 1, 2020 through March 1, 2020, the rate includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and the Underlying Master Portfolios. Beginning March 2, 2020,
the rate includes the LifePath Index Fund’s purchases and sales of the
underlying funds and the Underlying Master Portfolios.
(g) Includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and Large Cap Index Master Portfolio, Master Small Cap Index Series,
Total International ex U.S. Index Master Portfolio and U.S. Total Bond
Index Master Portfolio. |
|
Investor A | ||||||||||||||||||||
(For a share outstanding throughout each period) | Year Ended 12/31/23 |
Year Ended 12/31/22 |
Year Ended 12/31/21 |
Year Ended 12/31/20 |
Year Ended 12/31/19 |
|||||||||||||||
Net
asset value, beginning of year |
$ | 15.85 | $ | 19.77 | $ | 16.98 | $ | 15.03 | $ | 12.17 | ||||||||||
Net
investment income(a)
|
0.35 | 0.25 | 0.35 | 0.25 | 0.37 | |||||||||||||||
Net
realized and unrealized gain (loss) |
3.01 | (3.93 | ) | 2.78 | 1.93 | 2.83 | ||||||||||||||
Net
increase (decrease) from investment operations |
3.36 | (3.68 | ) | 3.13 | 2.18 | 3.20 | ||||||||||||||
Distributions
from net investment income(b) |
(0.34 | ) | (0.24 | ) | (0.34 | ) | (0.23 | ) | (0.34 | ) | ||||||||||
Net
asset value, end of year |
$ | 18.87 | $ | 15.85 | $ | 19.77 | $ | 16.98 | $ | 15.03 | ||||||||||
Total
Return(c) |
||||||||||||||||||||
Based
on net asset value |
21.30 | % | (18.58 | )% | 18.50 | % | 14.71 | % | 26.46 | % | ||||||||||
Ratios
to Average Net Assets(d)
|
||||||||||||||||||||
Total
expenses |
0.41 | % | 0.41 | % | 0.41 | % | 0.44 | % | 0.57 | % | ||||||||||
Total
expenses after fees waived and/or reimbursed |
0.36 | % | 0.35 | % | 0.35 | % | 0.34 | % | 0.34 | % | ||||||||||
Net
investment income |
2.02 | % | 1.50 | % | 1.88 | % | 1.71 | % | 2.66 | % | ||||||||||
Supplemental
Data |
||||||||||||||||||||
Net
assets, end of year (000) |
$ | 27,943 | $ | 18,405 | $ | 20,045 | $ | 14,564 | $ | 11,358 | ||||||||||
Portfolio
turnover rate |
3 | %(e) | 9 | %(e) | 6 | %(e) | 6 | %(f) | 11 | %(g) | ||||||||||
(a) Based on average
shares outstanding.
(b) Distributions for
annual periods determined in accordance with U.S. federal income tax
regulations.
(c) Where applicable,
assumes the reinvestment of distributions.
(d) Excludes fees and
expenses incurred indirectly as a result of investments in underlying
funds.
(e) Includes the
purchases and sales of the underlying funds and the Underlying Master
Portfolios.
(f) From
January 1, 2020 through March 1, 2020, the rate includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and the Underlying Master Portfolios. Beginning March 2, 2020,
the rate includes the LifePath Index Fund’s purchases and sales of the
underlying funds and the Underlying Master Portfolios.
(g) Includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and Large Cap Index Master Portfolio, Master Small Cap Index Series,
Total International ex U.S. Index Master Portfolio and U.S. Total Bond
Index Master Portfolio. |
|
Institutional | ||||||||||||||||||||
(For a share outstanding throughout each period) | Year Ended 12/31/23 |
Year Ended 12/31/22 |
Year Ended 12/31/21 |
Year Ended 12/31/20 |
Period from 10/30/19(a) to 12/31/19 |
|||||||||||||||
Net
asset value, beginning of period |
$ | 11.16 | $ | 13.90 | $ | 11.92 | $ | 10.48 | $ | 10.00 | ||||||||||
Net
investment income(b)
|
0.29 | 0.22 | 0.33 | 0.23 | 0.11 | |||||||||||||||
Net
realized and unrealized gain (loss) |
2.10 | (2.77 | ) | 1.90 | 1.36 | 0.46 | ||||||||||||||
Net
increase (decrease) from investment operations |
2.39 | (2.55 | ) | 2.23 | 1.59 | 0.57 | ||||||||||||||
Distributions
from net investment income(c) |
(0.26 | ) | (0.19 | ) | (0.25 | ) | (0.15 | ) | (0.09 | ) | ||||||||||
Net
asset value, end of period |
$ | 13.29 | $ | 11.16 | $ | 13.90 | $ | 11.92 | $ | 10.48 | ||||||||||
Total
Return(d) |
||||||||||||||||||||
Based
on net asset value |
21.57 | % | (18.30 | )% | 18.74 | % | 15.43 | % | 5.71 | %(e) | ||||||||||
Ratios
to Average Net Assets(f)
|
||||||||||||||||||||
Total
expenses |
0.17 | % | 0.17 | % | 0.21 | % | 0.50 | % | 13.00 | %(g)(h) | ||||||||||
Total
expenses after fees waived and/or reimbursed |
0.11 | % | 0.10 | % | 0.09 | % | 0.08 | % | 0.11 | %(g) | ||||||||||
Net
investment income |
2.37 | % | 1.89 | % | 2.50 | % | 2.23 | % | 6.26 | %(g) | ||||||||||
Supplemental
Data |
||||||||||||||||||||
Net
assets, end of period (000) |
$ | 20,102 | $ | 10,487 | $ | 6,545 | $ | 1,360 | $ | 52 | ||||||||||
Portfolio
turnover rate |
3 | %(i) | 8 | %(i) | 9 | %(i) | 48 | %(j) | 1 | %(k) | ||||||||||
(a) Commencement of
operations.
(b) Based on average
shares outstanding.
(c) Distributions for
annual periods determined in accordance with U.S. federal income tax
regulations.
(d) Where applicable,
assumes the reinvestment of distributions.
(e) Not
annualized.
(f) Excludes fees and
expenses incurred indirectly as a result of investments in underlying
funds.
(g) Annualized.
(h) Audit, offering and
organization costs were not annualized in the calculation of expense
ratios. If these expenses were annualized, the total expenses would have
been 44.41%.
(i) Includes the
purchases and sales of the underlying funds and the Underlying Master
Portfolios.
(j) From
January 1, 2020 through March 1, 2020, the rate includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and the Underlying Master Portfolios. Beginning March 2, 2020,
the rate includes the LifePath Index Fund’s purchases and sales of the
underlying funds and the Underlying Master Portfolios.
(k) Includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and Large Cap Index Master Portfolio, Master Small Cap Index Series
and U.S. Total Bond Index Master Portfolio. |
|
Investor A | ||||||||||||||||||||
(For a share outstanding throughout each period) | Year Ended 12/31/23 |
Year Ended 12/31/22 |
Year Ended 12/31/21 |
Year Ended 12/31/20 |
Period from 10/30/19(a) to 12/31/19 |
|||||||||||||||
Net
asset value, beginning of period |
$ | 11.15 | $ | 13.90 | $ | 11.92 | $ | 10.48 | $ | 10.00 | ||||||||||
Net
investment income(b)
|
0.27 | 0.19 | 0.28 | 0.22 | 0.11 | |||||||||||||||
Net
realized and unrealized gain (loss) |
2.10 | (2.77 | ) | 1.92 | 1.35 | 0.46 | ||||||||||||||
Net
increase (decrease) from investment operations |
2.37 | (2.58 | ) | 2.20 | 1.57 | 0.57 | ||||||||||||||
Distributions
from net investment income(c) |
(0.24 | ) | (0.17 | ) | (0.22 | ) | (0.13 | ) | (0.09 | ) | ||||||||||
Net
asset value, end of period |
$ | 13.28 | $ | 11.15 | $ | 13.90 | $ | 11.92 | $ | 10.48 | ||||||||||
Total
Return(d) |
||||||||||||||||||||
Based
on net asset value |
21.33 | % | (18.56 | )% | 18.48 | % | 15.14 | % | 5.67 | %(e) | ||||||||||
Ratios
to Average Net Assets(f)
|
||||||||||||||||||||
Total
expenses |
0.42 | % | 0.42 | % | 0.46 | % | 2.02 | % | 13.24 | %(g)(h) | ||||||||||
Total
expenses after fees waived and/or reimbursed |
0.36 | % | 0.35 | % | 0.34 | % | 0.34 | % | 0.36 | %(g) | ||||||||||
Net
investment income |
2.24 | % | 1.61 | % | 2.08 | % | 2.10 | % | 6.03 | %(g) | ||||||||||
Supplemental
Data |
||||||||||||||||||||
Net
assets, end of period (000) |
$ | 2,930 | $ | 1,068 | $ | 523 | $ | 123 | $ | 53 | ||||||||||
Portfolio
turnover rate |
3 | %(i) | 8 | %(i) | 9 | %(i) | 48 | %(j) | 1 | %(k) | ||||||||||
(a) Commencement of
operations.
(b) Based on average
shares outstanding.
(c) Distributions for
annual periods determined in accordance with U.S. federal income tax
regulations.
(d) Where applicable,
assumes the reinvestment of distributions.
(e) Not
annualized.
(f) Excludes fees and
expenses incurred indirectly as a result of investments in underlying
funds.
(g) Annualized.
(h) Audit, offering and
organization costs were not annualized in the calculation of expense
ratios. If these expenses were annualized, the total expenses would have
been 44.60%.
(i) Includes the
purchases and sales of the underlying funds and the Underlying Master
Portfolios.
(j) From
January 1, 2020 through March 1, 2020, the rate includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and the Underlying Master Portfolios. Beginning March 2, 2020,
the rate includes the LifePath Index Fund’s purchases and sales of the
underlying funds and the Underlying Master Portfolios.
(k) Includes the
LifePath Index Master Portfolio’s purchases and sales of the underlying
funds and Large Cap Index Master Portfolio, Master Small Cap Index Series
and U.S. Total Bond Index Master Portfolio. |
|
∎ |
Access
the BlackRock website at http://www.blackrock.com/edelivery; and
|
∎ |
Log
into your account. |
PRO-LPIND-P-0424 |