APRIL 29, 2024, as amended AUGUST 16, 2024 |
• | BlackRock LifePath® Dynamic Retirement Fund |
• | BlackRock LifePath® Dynamic 2025 Fund |
• | BlackRock LifePath® Dynamic 2030 Fund |
• | BlackRock LifePath® Dynamic 2035 Fund |
• | BlackRock LifePath® Dynamic 2040 Fund |
• | BlackRock LifePath® Dynamic 2045 Fund |
• | BlackRock LifePath® Dynamic 2050 Fund |
• | BlackRock LifePath® Dynamic 2055 Fund |
• | BlackRock LifePath® Dynamic 2060 Fund |
• | BlackRock LifePath® Dynamic 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 |
|
Class K Shares | ||||
Management
Fee1 |
|||||
Distribution
and/or Service (12b-1) Fees |
|||||
Other
Expenses1,2,3,4 |
|||||
Administration
Fees1 |
|||||
Independent
Expenses2,3,4 |
|||||
Acquired
Fund Fees and Expenses1,3 |
|||||
Total
Annual Fund Operating Expenses3 |
|||||
Fee
Waivers and/or Expense Reimbursements1,4 |
( |
||||
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements1,4 |
1 | As
described in the “Management of the Funds” section of the Fund’s
prospectus beginning on page 199, BlackRock Advisors, LLC (“BAL”) and BFA
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 of the Fund, through |
2 |
3 |
4 | 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 | |||||||||||||
Class
K 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: |
∎ |
Allocation
Risk — The Fund’s ability to achieve its investment
objective depends upon BFA’S skill in determining the Fund’s strategic
asset class allocation and in selecting the best mix of Underlying Funds
and direct investments. There is a risk that BFA’s evaluations and
assumptions regarding asset classes or 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. |
∎ |
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. |
∎ |
Investments in
Underlying Funds Risk — The Fund’s investments are
concentrated 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 equity and bond markets
and 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. |
∎ |
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. |
∎ |
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. |
∎ |
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: |
∎ |
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,
and the rules thereunder. Increases and decreases in the value of the
Fund’s portfolio will be magnified when the Fund uses
leverage. |
∎ |
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. |
∎ |
Collateralized
Debt Obligations Risk — In addition to the typical risks
associated with fixed-income securities and asset-backed securities,
collateralized debt obligations (“CDOs”), including collateralized loan
obligations, carry additional risks including, but not limited to:
(i) the possibility that distributions from collateral securities
will not be adequate to make interest or other payments; (ii) the
risk that the collateral may default or decline in value or be downgraded,
if rated by a nationally recognized statistical rating organization;
(iii) the Fund may invest in tranches of CDOs that are subordinate to
other tranches; (iv) the structure and complexity of the transaction
and the legal documents could lead to disputes among investors regarding
the characterization of proceeds; (v) the investment return achieved
by the Fund could be significantly different than those predicted by
financial models; (vi) the lack of a readily available secondary
market for CDOs; (vii) the risk of forced “fire sale” liquidation due
to technical defaults such as coverage test failures; and (viii) the
CDO’s manager may perform
poorly. |
∎ |
Commodities
Related Investments Risk — Exposure to the commodities
markets may subject the Fund to greater volatility than investments in
traditional securities. The value of commodity-linked derivative
investments may be affected by changes in overall market movements,
commodity index volatility, changes in inflation, interest rates, or
factors affecting a particular industry or commodity, such as drought,
floods, weather, embargoes, tariffs and international economic, political
and regulatory developments. |
∎ |
Concentration
Risk — To the extent that the Fund or 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, the Fund or 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. |
∎ |
Convertible
Securities Risk — The market value of a convertible security
performs like that of a regular debt security; that is, if market interest
rates rise, the value of a convertible security usually falls. In
addition, convertible securities are subject to the risk that the issuer
will not be able to pay interest, principal or dividends when due, and
their market value may change based on changes in the issuer’s credit
rating or the market’s perception of the issuer’s creditworthiness. Since
it derives a portion of its value from the common stock into which it may
be converted, a convertible security is also subject to the same types of
market and issuer risks that apply to the underlying common stock,
including the potential for increased volatility in the price of the
convertible security. |
∎ |
Corporate Loans
Risk — Commercial banks and other financial institutions or
institutional investors make corporate loans to companies that need
capital to grow or restructure. Borrowers generally pay interest on
corporate loans at rates that change in response to changes in market
interest rates such as the Secured Overnight Financing Rate (“SOFR”), the
London Interbank Offered Rate (“LIBOR”) or the prime rates of U.S. banks.
As a result, the value of corporate loan investments is generally less
exposed to the adverse effects of shifts in market interest rates than
investments that pay a fixed rate of interest. The market for corporate
loans may be subject to irregular trading activity and wide bid/ask
spreads. In addition, transactions in corporate loans may settle on a
delayed basis. As a result, the proceeds from the sale of corporate loans
may not be readily available to make additional investments or to meet the
Fund’s redemption obligations. To the extent the extended settlement
process gives rise to short-term liquidity needs, the Fund may hold
additional cash, sell investments or temporarily borrow from banks and
other lenders. |
∎ |
Counterparty
Risk — The counterparty to an over‑the‑counter derivatives
contract or a borrower of the Fund’s securities may be unable or unwilling
to make timely principal, interest or settlement payments, or otherwise to
honor its obligations. Any such failure to honor its obligations may cause
significant losses to the Fund. |
∎ |
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. |
∎ |
Distressed
Securities Risk — Distressed securities are speculative and
involve substantial risks in addition to the risks of investing in junk
bonds. The Fund will generally not receive interest payments on the
distressed securities and may incur costs to protect its investment. In
addition, distressed securities involve the substantial risk that
principal will not be repaid. These securities may present a substantial
risk of default or may be in default at the time of investment. The Fund
may incur additional expenses to the extent it is required to seek
recovery upon a default in the payment of principal of or interest on its
portfolio holdings. In any reorganization or liquidation proceeding
relating to a portfolio company, the Fund may lose its entire investment
or may be required to accept cash or securities with a value less than its
original investment. Distressed securities and any securities received in
an exchange for such securities may be subject to restrictions on
resale. |
∎ |
Dollar Rolls
Risk — Dollar rolls involve the risk that the market value
of the securities that the Fund is committed to buy may decline below the
price of the securities the Fund has sold. These transactions may involve
leverage. |
∎ |
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 — A natural disaster could occur in a geographic region
in which the Fund invests, which could adversely affect the economy or the
business operations of companies in the specific geographic region,
causing an adverse impact on the Fund’s investments in, or which are
exposed to, the affected region. |
∎ |
High Portfolio
Turnover Risk — The Fund may engage in active and frequent
trading of its portfolio securities. High portfolio turnover (more than
100%) may result in increased transaction costs to the Fund, including
brokerage commissions, dealer mark‑ups and other transaction costs on the
sale of the securities and on reinvestment in other securities. The sale
of Fund portfolio securities may result in the realization and/or
distribution to shareholders of higher capital gains or losses as compared
to a fund with less active trading policies. These effects of higher than
normal portfolio turnover may adversely affect Fund
performance. |
∎ |
High Yield
Bonds Risk — Although junk bonds generally pay higher rates
of interest than investment grade bonds, junk bonds are high risk
investments that are considered speculative and may cause income and
principal losses for 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. |
∎ |
Indexed and
Inverse Securities Risk — Indexed and inverse securities
provide a potential return based on a particular index of value or
interest rates. The Fund’s return on these securities will be subject to
risk with respect to the value of the particular index. These securities
are subject to leverage risk and correlation risk. Certain indexed and
inverse securities have greater sensitivity to changes in interest rates
or index levels than other securities, and the Fund’s investment in such
instruments may decline significantly in value if interest rates or index
levels move in a way Fund management does not
anticipate. |
∎ |
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. |
∎ |
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. |
∎ |
Investment
Style Risk — Under certain market conditions, growth
investments have performed better during the later stages of economic
expansion and value investments have performed better during periods of
economic recovery. Therefore, these investment styles may over time go in
and out of favor. At times when an investment style used by the Fund or an
Underlying Fund is out of favor, the Fund may underperform other funds
that use different investment
styles. |
∎ |
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. |
∎ |
Management
Risk — If a passively managed ETF does not fully replicate
the underlying index, it is subject to the risk that the manager’s
investment management strategy may not produce the intended
results. |
∎ |
Mezzanine
Securities Risk — Mezzanine securities carry the risk that
the issuer will not be able to meet its obligations and that the equity
securities purchased with the mezzanine investments may lose
value. |
∎ |
Model Risk
— The Fund seeks to pursue its investment objective by using
proprietary models that incorporate quantitative analysis. Investments
selected using these models may perform differently than as forecasted due
to the factors incorporated into the models and the weighting of each
factor, changes from historical trends, and issues in the construction and
implementation of the models (including, but not limited to, software
issues and other technological issues). There is no guarantee that
BlackRock’s use of these models will result in effective investment
decisions for the
Fund. |
∎ |
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. |
∎ |
Municipal
Securities Risks — Municipal securities risks include the
ability of the issuer to repay the obligation, the relative lack of
information about certain issuers of municipal securities, and the
possibility of future legislative changes which could affect the market
for and value of municipal securities. Budgetary constraints of local,
state, and federal governments upon which the issuers may be relying for
funding may also impact municipal securities. These risks
include: |
∎ |
National Closed
Market Trading Risk — To the extent that the underlying
securities and/or other assets 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 and/or other
assets |
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. |
∎ |
“New Issues”
Risk — “New issues” are initial public offerings (“IPOs”) of
equity securities. Securities issued in IPOs have no trading history, and
information about the companies may be available for very limited periods.
In addition, the prices of securities sold in IPOs may be highly volatile
or may decline shortly after the
IPO. |
∎ |
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. |
∎ |
Pay-in-kind
Bonds Risk — Similar to zero coupon obligations, pay-in-kind
bonds also carry additional risk as holders of these types of securities
realize no cash until the cash payment date unless a portion of such
securities is sold and, if the issuer defaults, the Fund may obtain no
return at all on its investment. The market price of pay-in-kind bonds is
affected by interest rate changes to a greater extent, and therefore tends
to be more volatile, than that of securities which pay interest in
cash. |
∎ |
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. |
∎ |
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. |
∎ |
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. 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. |
∎ |
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.
An 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 and Purchase and Sale Contracts Risk — If the
other party to a repurchase agreement or purchase and sale contract
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 in either
situation and the market value of the security declines, the Fund may lose
money. |
∎ |
Reverse
Repurchase Agreements Risk — Reverse repurchase agreements
involve the sale of securities held by the Fund with an agreement to
repurchase the securities at an agreed-upon price, date and interest
payment. Reverse repurchase agreements involve the risk that the other
party may fail to return the securities in a timely manner or at all. The
Fund could lose money if it is unable to recover the securities and the
value of the collateral held by the Fund, including the value of the
investments made with cash collateral, is less than the value of the
securities. |
These
events could also trigger adverse tax consequences for the Fund. In
addition, reverse repurchase agreements involve the risk that the interest
income earned in the investment of the proceeds will be less than the
interest expense. |
∎ |
Risks of Loan
Assignments and Participations — As the purchaser of an
assignment, the Fund typically succeeds to all the rights and obligations
of the assigning institution and becomes a lender under the credit
agreement with respect to the debt obligation; however, the Fund may not
be able unilaterally to enforce all rights and remedies under the loan and
with regard to any associated collateral. Because assignments may be
arranged through private negotiations between potential assignees and
potential assignors, the rights and obligations acquired by the Fund as
the purchaser of an assignment may differ from, and be more limited than,
those held by the assigning lender. In addition, if the loan is
foreclosed, the Fund could become part owner of any collateral and could
bear the costs and liabilities of owning and disposing of the collateral.
The Fund may be required to pass along to a purchaser that buys a loan
from the Fund by way of assignment a portion of any fees to which the Fund
is entitled under the loan. In connection with purchasing participations,
the Fund generally will have no right to enforce compliance by the
borrower with the terms of the loan agreement relating to the loan, nor
any rights of set‑off against the borrower, and the Fund may not directly
benefit from any collateral supporting the loan in which it has purchased
the participation. As a result, the Fund will be subject to the credit
risk of both the borrower and the lender that is selling the
participation. In the event of the insolvency of the lender selling a
participation, the Fund may be treated as a general creditor of the lender
and may not benefit from any set‑off between the lender and the
borrower. |
∎ |
Second Lien
Loans Risk — Second lien loans generally are subject to
similar risks as those associated with investments in senior loans.
Because second lien loans are subordinated or unsecured and thus lower in
priority of payment to senior loans, they are subject to the additional
risk that the cash flow of the borrower and property securing the loan or
debt, if any, may be insufficient to meet scheduled payments after giving
effect to the senior secured obligations of the
borrower. |
∎ |
Senior Loans
Risk — There is less readily available, reliable information
about most senior loans than is the case for many other types of
securities. An economic downturn generally leads to a higher non‑payment
rate, and a senior loan may lose significant value before a default
occurs. Moreover, any specific collateral used to secure a senior loan may
decline in value or become illiquid, which would adversely affect the
senior loan’s value. No active trading market may exist for certain senior
loans, which may impair the ability of the Fund to realize full value in
the event of the need to sell a senior loan and which may make it
difficult to value senior loans. Although senior loans in which the Fund
will invest generally will be secured by specific collateral, there can be
no assurance that liquidation of such collateral would satisfy the
borrower’s obligation in the event of non‑payment of scheduled interest or
principal or that such collateral could be readily liquidated. To the
extent that a senior loan is collateralized by stock in the borrower or
its subsidiaries, such stock may lose all of its value in the event of the
bankruptcy of the borrower. Uncollateralized senior loans involve a
greater risk of loss. |
∎ |
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 (“NAV”). 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. |
∎ |
Short Sales
Risk — Because making short sales in securities that it does
not own exposes the Fund to the risks associated with those securities,
such short sales involve speculative exposure risk. The Fund will incur a
loss as a result of a short sale if the price of the security increases
between the date of the short sale and the date on which the Fund replaces
the security sold short. |
∎ |
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. |
∎ |
Small Cap and
Emerging Growth Securities Risk — Small cap or emerging
growth companies may have limited product lines or markets. They may be
less financially secure than larger, more established companies. They may
depend on a more limited management group than larger capitalized
companies. |
∎ |
Sovereign Debt
Risk — Sovereign debt instruments are subject to the risk
that a governmental entity may delay or refuse to pay interest or repay
principal on its sovereign debt, due, for example, to cash flow problems,
insufficient foreign currency reserves, political considerations, the
relative size of the governmental entity’s debt position in relation to
the economy or the failure to put in place economic reforms required by
the International Monetary Fund or other multilateral
agencies. |
∎ |
Structured
Notes Risk — Structured notes and other related instruments
purchased by the Fund are generally privately negotiated debt obligations
where the principal and/or interest is determined by reference to the
performance of a specific asset, benchmark asset, market or interest rate
(“reference measure”). The purchase of structured notes exposes the Fund
to the credit risk of the issuer of the structured product. Structured
notes may be leveraged, increasing the volatility of each structured
note’s value relative to the change in the reference measure. Structured
notes may also be less liquid and more difficult to price accurately than
less complex securities and instruments or more traditional debt
securities. |
∎ |
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. |
∎ |
Supranational
Entities Risk — The Fund may invest in obligations issued or
guaranteed by the World Bank. The government members, or “stockholders,”
usually make initial capital contributions to the World Bank and in many
cases are committed to make additional capital contributions if the World
Bank is unable to repay its borrowings. There is no guarantee that one or
more stockholders of the World Bank will continue to make any necessary
additional capital contributions. If such contributions are not made, the
entity may be unable to pay interest or repay principal on its debt
securities, and the Fund may lose money on such
investments. |
∎ |
Tender Option
Bonds and Related Securities Risk — The Fund’s participation
in tender option bond transactions may reduce the Fund’s returns and/or
increase volatility. Investments in tender option bond transactions expose
the Fund to counterparty risk and leverage risk. An investment in a tender
option bond transaction typically will involve greater risk than an
investment in a municipal fixed rate security, including the risk of loss
of principal. Distributions on residual inverse floating rate interest
tender option bonds (“TOB Residuals”) will bear an inverse relationship to
short-term municipal security interest rates. Distributions on TOB
Residuals paid to the Fund will be reduced or, in the extreme, eliminated
as short-term municipal interest rates rise and will increase when
short-term municipal interest rates fall. TOB Residuals generally will
underperform the market for fixed rate municipal securities in a rising
interest rate environment. The Fund may invest in beneficial interests in
a special purpose trust formed for the purpose of holding Municipal Bonds
contributed by one or more funds (a “TOB Trust”) on either a non‑recourse
or recourse basis. If the Fund invests in a TOB Trust on a recourse basis,
it could suffer losses in excess of the value of its TOB
Residuals. |
∎ |
Tracking Error
Risk — The Fund may be subject to 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 (including shares of the Underlying Funds) 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,
among other reasons. These risks may be heightened during times of
increased market volatility or other unusual market conditions. In
addition, tracking error may result because a fund incurs fees and
expenses, while the Underlying Index does
not. |
∎ |
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. |
∎ |
U.S. Government
Mortgage-Related Securities Risk — There are a number of
important differences among the agencies and instrumentalities of the U.S.
Government that issue mortgage-related securities and among the securities
that they issue. Mortgage-related securities guaranteed by the Government
National Mortgage Association (“GNMA” or “Ginnie Mae”) are guaranteed as
to the timely payment of principal and interest by GNMA and such guarantee
is backed by the full faith and credit of the United States. GNMA
securities also are supported by the right of GNMA to borrow funds from
the U.S. Treasury to make payments under its guarantee. Mortgage-related
securities issued by Fannie Mae or Freddie Mac are solely the obligations
of Fannie Mae or Freddie Mac, as the case may be, and are not backed by or
entitled to the full faith and credit of the United States but are
supported by the right of the issuer to borrow from the
Treasury. |
∎ |
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. |
∎ |
Warrants Risk
— If the price of the underlying stock does not rise above
the exercise price before the warrant expires, the warrant generally
expires without any value and the Fund will lose any amount it paid for
the warrant. Thus, investments in warrants may involve substantially more
risk than investments in common stock. Warrants may trade in the same
markets as their underlying stock; however, the price of the warrant does
not necessarily move with the price of the underlying
stock. |
∎ |
When-Issued and
Delayed Delivery Securities and Forward Commitments Risk —
When-issued and delayed delivery securities and forward commitments
involve the risk that the security the Fund buys will lose value prior to
its delivery. There also is the risk that the security will not be issued
or that the other party to the transaction will not meet its obligation.
If this occurs, the Fund may lose both the investment opportunity for the
assets it set aside to pay for the security and any gain in the security’s
price. |
∎ |
Zero Coupon
Securities Risk —
While interest payments are not made on such securities, holders of such
securities are deemed to have received income (“phantom income”) annually,
notwithstanding that cash may not be received currently. The effect of
owning instruments that do not make current interest payments is that a
fixed yield is earned not only on the original investment but also, in
effect, on all discount accretion during the life of the obligations. This
implicit reinvestment of earnings at a fixed rate eliminates the risk of
being unable to invest distributions at a rate as high as the implicit
yield on the zero coupon bond, but at the same time eliminates the
holder’s ability to reinvest at higher rates in the future. For this
reason, some of these securities may be subject to substantially greater
price fluctuations during periods of changing market interest rates than
are comparable securities that pay interest currently. Longer term zero
coupon bonds are more exposed to interest rate risk than shorter term zero
coupon bonds. These investments benefit the issuer by mitigating its need
for cash to meet debt service, but also require a higher rate of return to
attract investors who are willing to defer receipt of
cash. |
|
1 Year | 5 Years | 10 Years | |||||||||
LifePath
Dynamic Retirement Fund — Class K Shares |
||||||||||||
Return
Before Taxes |
% | % | % | |||||||||
Return
After Taxes on Distributions |
% | % | % | |||||||||
Return
After Taxes on Distributions and Sale of Fund Shares |
% | % | % | |||||||||
LifePath
Dynamic 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) |
% | % | % |
Portfolio
Manager |
Portfolio Manager of the Fund Since | Title | ||
Philip
Green |
2016 | Managing Director of BlackRock, Inc. | ||
Chris
Chung, CFA |
2020 | Managing Director of BlackRock, Inc. | ||
Michael
Pensky, CFA |
2024 | Managing Director of BlackRock, Inc. |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
Class K Shares | ||||
Management
Fee1 |
|||||
Distribution
and/or Service (12b-1) Fees |
|||||
Other
Expenses1,2,3,4 |
|||||
Administration
Fees1 |
|||||
Independent
Expenses2,3,4 |
|||||
Acquired
Fund Fees and Expenses1,3 |
|||||
Total
Annual Fund Operating Expenses3 |
|||||
Fee
Waivers and/or Expense Reimbursements1,4 |
( |
||||
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements1,4 |
1 | As
described in the “Management of the Funds” section of the Fund’s
prospectus beginning on page 199, BlackRock Advisors, LLC (“BAL”) and BFA
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 of the Fund, through |
2 |
3 |
4 | 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 | |||||||||||||
Class
K Shares |
$ | $ | $ | $ |
Years Until Retirement | Equity Funds (includes REITs)1 |
Fixed‑Income Funds1 | ||||||||
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 | % | ||||||
1 BFA may adjust the
allocation to equity and fixed-income in the Fund, based on an assessment
of the current market conditions and the potential contribution of each
asset class to the expected risk and return characteristics of the Fund.
In general, the adjustments will be limited to +/- 10% relative to the
target allocations. |
|
∎ |
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: |
∎ |
Allocation
Risk — The Fund’s ability to achieve its investment
objective depends upon BFA’S skill in determining the Fund’s strategic
asset class allocation and in selecting the best mix of Underlying Funds
and direct investments. There is a risk that BFA’s evaluations and
assumptions regarding asset classes or 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. |
∎ |
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. |
∎ |
Investments in
Underlying Funds Risk — The Fund’s investments are
concentrated 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 equity and bond markets
and 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. |
∎ |
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. |
∎ |
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. |
∎ |
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: |
∎ |
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,
and the rules thereunder. Increases and decreases in the value of the
Fund’s portfolio will be magnified when the Fund uses
leverage. |
∎ |
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. |
∎ |
Collateralized
Debt Obligations Risk — In addition to the typical risks
associated with fixed-income securities and asset-backed securities,
collateralized debt obligations (“CDOs”), including collateralized loan
obligations, carry additional risks including, but not limited to:
(i) the possibility that distributions from collateral securities
will not be adequate to make interest or other payments; (ii) the
risk that the collateral may default or decline in value or be downgraded,
if rated by a nationally recognized statistical rating organization;
(iii) the Fund may invest in tranches of CDOs that are subordinate to
other tranches; (iv) the structure and complexity of the transaction
and the legal documents could lead to disputes among investors regarding
the characterization of proceeds; (v) the investment return achieved
by the Fund could be significantly different than those predicted by
financial models; (vi) the lack of a readily available secondary
market for CDOs; (vii) the risk of forced “fire sale” liquidation due
to technical defaults such as coverage test failures; and (viii) the
CDO’s manager may perform
poorly. |
∎ |
Commodities
Related Investments Risk — Exposure to the commodities
markets may subject the Fund to greater volatility than investments in
traditional securities. The value of commodity-linked derivative
investments may be affected by changes in overall market movements,
commodity index volatility, changes in inflation, interest rates, or
factors affecting a particular industry or commodity, such as drought,
floods, weather, embargoes, tariffs and international economic, political
and regulatory developments. |
∎ |
Concentration
Risk — To the extent that the Fund or 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, the Fund or 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. |
∎ |
Convertible
Securities Risk — The market value of a convertible security
performs like that of a regular debt security; that is, if market interest
rates rise, the value of a convertible security usually falls. In
addition, convertible securities are subject to the risk that the issuer
will not be able to pay interest, principal or dividends when due, and
their market value may change based on changes in the issuer’s credit
rating or the market’s perception of the issuer’s creditworthiness. Since
it derives a portion of its value from the common stock into which it may
be converted, a convertible security is also subject to the same types of
market and issuer risks that apply to the underlying common stock,
including the potential for increased volatility in the price of the
convertible security. |
∎ |
Corporate Loans
Risk — Commercial banks and other financial institutions or
institutional investors make corporate loans to companies that need
capital to grow or restructure. Borrowers generally pay interest on
corporate loans at rates that change in response to changes in market
interest rates such as the Secured Overnight Financing Rate (“SOFR”), the
London Interbank Offered Rate (“LIBOR”) or the prime rates of U.S. banks.
As a result, the value of corporate loan investments is generally less
exposed to the adverse effects of shifts in market interest rates than
investments that pay a fixed rate of interest. The market for corporate
loans may be subject to irregular trading activity and wide bid/ask
spreads. In addition, transactions in corporate loans may settle on a
delayed basis. As a result, the proceeds from the sale of corporate loans
may not be readily available to make additional investments or to meet the
Fund’s redemption obligations. To the extent the extended settlement
process gives rise to short-term liquidity needs, the Fund may hold
additional cash, sell investments or temporarily borrow from banks and
other lenders. |
∎ |
Counterparty
Risk — The counterparty to an over‑the‑counter derivatives
contract or a borrower of the Fund’s securities may be unable or unwilling
to make timely principal, interest or settlement payments, or otherwise to
honor its obligations. Any such failure to honor its obligations may cause
significant losses to the Fund. |
∎ |
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. |
∎ |
Distressed
Securities Risk — Distressed securities are speculative and
involve substantial risks in addition to the risks of investing in junk
bonds. The Fund will generally not receive interest payments on the
distressed securities and may incur costs to protect its investment. In
addition, distressed securities involve the substantial risk that
principal will not be repaid. These securities may present a substantial
risk of default or may be in default at the time of investment. The Fund
may incur additional expenses to the extent it is required to seek
recovery upon a default in the payment of principal of or interest on its
portfolio holdings. In any reorganization or liquidation proceeding
relating to a portfolio company, the Fund may lose its entire investment
or may be required to accept cash or securities with a value less than its
original investment. Distressed securities and any securities received in
an exchange for such securities may be subject to restrictions on
resale. |
∎ |
Dollar Rolls
Risk — Dollar rolls involve the risk that the market value
of the securities that the Fund is committed to buy may decline below the
price of the securities the Fund has sold. These transactions may involve
leverage. |
∎ |
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 — A natural disaster could occur in a geographic region
in which the Fund invests, which could adversely affect the economy or the
business operations of companies in the specific geographic region,
causing an adverse impact on the Fund’s investments in, or which are
exposed to, the affected region. |
∎ |
High Portfolio
Turnover Risk — The Fund may engage in active and frequent
trading of its portfolio securities. High portfolio turnover (more than
100%) may result in increased transaction costs to the Fund, including
brokerage commissions, dealer mark‑ups and other transaction costs on the
sale of the securities and on reinvestment in other securities. The sale
of Fund portfolio securities may result in the realization and/or
distribution to shareholders of higher capital gains or losses as compared
to a fund with less active trading policies. These effects of higher than
normal portfolio turnover may adversely affect Fund
performance. |
∎ |
High Yield
Bonds Risk — Although junk bonds generally pay higher rates
of interest than investment grade bonds, junk bonds are high risk
investments that are considered speculative and may cause income and
principal losses for 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. |
∎ |
Indexed and
Inverse Securities Risk — Indexed and inverse securities
provide a potential return based on a particular index of value or
interest rates. The Fund’s return on these securities will be subject to
risk with respect to the value of the particular index. These securities
are subject to leverage risk and correlation risk. Certain indexed and
inverse securities have greater sensitivity to changes in interest rates
or index levels than other securities, and the Fund’s investment in such
instruments may decline significantly in value if interest rates or index
levels move in a way Fund management does not
anticipate. |
∎ |
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. |
∎ |
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. |
∎ |
Investment
Style Risk — Under certain market conditions, growth
investments have performed better during the later stages of economic
expansion and value investments have performed better during periods of
economic |
recovery.
Therefore, these investment styles may over time go in and out of favor.
At times when an investment style used by the Fund or an Underlying Fund
is out of favor, the Fund may underperform other funds that use different
investment styles. |
∎ |
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. |
∎ |
Management
Risk — If a passively managed ETF does not fully replicate
the underlying index, it is subject to the risk that the manager’s
investment management strategy may not produce the intended
results. |
∎ |
Mezzanine
Securities Risk — Mezzanine securities carry the risk that
the issuer will not be able to meet its obligations and that the equity
securities purchased with the mezzanine investments may lose
value. |
∎ |
Model Risk
— The Fund seeks to pursue its investment objective by using
proprietary models that incorporate quantitative analysis. Investments
selected using these models may perform differently than as forecasted due
to the factors incorporated into the models and the weighting of each
factor, changes from historical trends, and issues in the construction and
implementation of the models (including, but not limited to, software
issues and other technological issues). There is no guarantee that
BlackRock’s use of these models will result in effective investment
decisions for the
Fund. |
∎ |
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. |
∎ |
Municipal
Securities Risks — Municipal securities risks include the
ability of the issuer to repay the obligation, the relative lack of
information about certain issuers of municipal securities, and the
possibility of future legislative changes which could affect the market
for and value of municipal securities. Budgetary constraints of local,
state, and federal governments upon which the issuers may be relying for
funding may also impact municipal securities. These risks
include: |
∎ |
National Closed
Market Trading Risk — To the extent that the underlying
securities and/or other assets 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 and/or other assets 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. |
∎ |
“New Issues”
Risk — “New issues” are initial public offerings (“IPOs”) of
equity securities. Securities issued in IPOs have no trading history, and
information about the companies may be available for very limited periods.
In addition, the prices of securities sold in IPOs may be highly volatile
or may decline shortly after the
IPO. |
∎ |
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. |
∎ |
Pay-in-kind
Bonds Risk — Similar to zero coupon obligations, pay-in-kind
bonds also carry additional risk as holders of these types of securities
realize no cash until the cash payment date unless a portion of such
securities is sold and, if the issuer defaults, the Fund may obtain no
return at all on its investment. The market price of pay-in-kind bonds is
affected by interest rate changes to a greater extent, and therefore tends
to be more volatile, than that of securities which pay interest in
cash. |
∎ |
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. |
∎ |
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. |
∎ |
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. 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. |
∎ |
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.
An 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 and Purchase and Sale Contracts Risk — If the
other party to a repurchase agreement or purchase and sale contract
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 in either
situation and the market value of the security declines, the Fund may lose
money. |
∎ |
Reverse
Repurchase Agreements Risk — Reverse repurchase agreements
involve the sale of securities held by the Fund with an agreement to
repurchase the securities at an agreed-upon price, date and interest
payment. Reverse |
repurchase
agreements involve the risk that the other party may fail to return the
securities in a timely manner or at all. The Fund could lose money if it
is unable to recover the securities and the value of the collateral held
by the Fund, including the value of the investments made with cash
collateral, is less than the value of the securities. These events could
also trigger adverse tax consequences for the Fund. In addition, reverse
repurchase agreements involve the risk that the interest income earned in
the investment of the proceeds will be less than the interest
expense. |
∎ |
Risks of Loan
Assignments and Participations — As the purchaser of an
assignment, the Fund typically succeeds to all the rights and obligations
of the assigning institution and becomes a lender under the credit
agreement with respect to the debt obligation; however, the Fund may not
be able unilaterally to enforce all rights and remedies under the loan and
with regard to any associated collateral. Because assignments may be
arranged through private negotiations between potential assignees and
potential assignors, the rights and obligations acquired by the Fund as
the purchaser of an assignment may differ from, and be more limited than,
those held by the assigning lender. In addition, if the loan is
foreclosed, the Fund could become part owner of any collateral and could
bear the costs and liabilities of owning and disposing of the collateral.
The Fund may be required to pass along to a purchaser that buys a loan
from the Fund by way of assignment a portion of any fees to which the Fund
is entitled under the loan. In connection with purchasing participations,
the Fund generally will have no right to enforce compliance by the
borrower with the terms of the loan agreement relating to the loan, nor
any rights of set‑off against the borrower, and the Fund may not directly
benefit from any collateral supporting the loan in which it has purchased
the participation. As a result, the Fund will be subject to the credit
risk of both the borrower and the lender that is selling the
participation. In the event of the insolvency of the lender selling a
participation, the Fund may be treated as a general creditor of the lender
and may not benefit from any set‑off between the lender and the
borrower. |
∎ |
Second Lien
Loans Risk — Second lien loans generally are subject to
similar risks as those associated with investments in senior loans.
Because second lien loans are subordinated or unsecured and thus lower in
priority of payment to senior loans, they are subject to the additional
risk that the cash flow of the borrower and property securing the loan or
debt, if any, may be insufficient to meet scheduled payments after giving
effect to the senior secured obligations of the
borrower. |
∎ |
Senior Loans
Risk — There is less readily available, reliable information
about most senior loans than is the case for many other types of
securities. An economic downturn generally leads to a higher non‑payment
rate, and a senior loan may lose significant value before a default
occurs. Moreover, any specific collateral used to secure a senior loan may
decline in value or become illiquid, which would adversely affect the
senior loan’s value. No active trading market may exist for certain senior
loans, which may impair the ability of the Fund to realize full value in
the event of the need to sell a senior loan and which may make it
difficult to value senior loans. Although senior loans in which the Fund
will invest generally will be secured by specific collateral, there can be
no assurance that liquidation of such collateral would satisfy the
borrower’s obligation in the event of non‑payment of scheduled interest or
principal or that such collateral could be readily liquidated. To the
extent that a senior loan is collateralized by stock in the borrower or
its subsidiaries, such stock may lose all of its value in the event of the
bankruptcy of the borrower. Uncollateralized senior loans involve a
greater risk of loss. |
∎ |
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 (“NAV”). 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. |
∎ |
Short Sales
Risk — Because making short sales in securities that it does
not own exposes the Fund to the risks associated with those securities,
such short sales involve speculative exposure risk. The Fund will incur a
loss as a result of a short sale if the price of the security increases
between the date of the short sale and the date on which the Fund replaces
the security sold short. |
∎ |
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. |
∎ |
Small Cap and
Emerging Growth Securities Risk — Small cap or emerging
growth companies may have limited product lines or markets. They may be
less financially secure than larger, more established companies. They may
depend on a more limited management group than larger capitalized
companies. |
∎ |
Sovereign Debt
Risk — Sovereign debt instruments are subject to the risk
that a governmental entity may delay or refuse to pay interest or repay
principal on its sovereign debt, due, for example, to cash flow problems,
insufficient foreign currency reserves, political considerations, the
relative size of the governmental entity’s debt position in relation to
the economy or the failure to put in place economic reforms required by
the International Monetary Fund or other multilateral
agencies. |
∎ |
Structured
Notes Risk — Structured notes and other related instruments
purchased by the Fund are generally privately negotiated debt obligations
where the principal and/or interest is determined by reference to the
performance of a specific asset, benchmark asset, market or interest rate
(“reference measure”). The purchase of structured notes exposes the Fund
to the credit risk of the issuer of the structured product. Structured
notes may be leveraged, increasing the volatility of each structured
note’s value relative to the change in the reference measure. Structured
notes may also be less liquid and more difficult to price accurately than
less complex securities and instruments or more traditional debt
securities. |
∎ |
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. |
∎ |
Supranational
Entities Risk — The Fund may invest in obligations issued or
guaranteed by the World Bank. The government members, or “stockholders,”
usually make initial capital contributions to the World Bank and in many
cases are committed to make additional capital contributions if the World
Bank is unable to repay its borrowings. There is no guarantee that one or
more stockholders of the World Bank will continue to make any necessary
additional capital contributions. If such contributions are not made, the
entity may be unable to pay interest or repay principal on its debt
securities, and the Fund may lose money on such
investments. |
∎ |
Tender Option
Bonds and Related Securities Risk — The Fund’s participation
in tender option bond transactions may reduce the Fund’s returns and/or
increase volatility. Investments in tender option bond transactions expose
the Fund to counterparty risk and leverage risk. An investment in a tender
option bond transaction typically will involve greater risk than an
investment in a municipal fixed rate security, including the risk of loss
of principal. Distributions on residual inverse floating rate interest
tender option bonds (“TOB Residuals”) will bear an inverse relationship to
short-term municipal security interest rates. Distributions on TOB
Residuals paid to the Fund will be reduced or, in the extreme, eliminated
as short-term municipal interest rates rise and will increase when
short-term municipal interest rates fall. TOB Residuals generally will
underperform the market for fixed rate municipal securities in a rising
interest rate environment. The Fund may invest in beneficial interests in
a special purpose trust formed for the purpose of holding Municipal Bonds
contributed by one or more funds (a “TOB Trust”) on either a non‑recourse
or recourse basis. If the Fund invests in a TOB Trust on a recourse basis,
it could suffer losses in excess of the value of its TOB
Residuals. |
∎ |
Tracking Error
Risk — The Fund may be subject to 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 (including shares of the Underlying Funds) 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,
among other reasons. These risks may be heightened during times of
increased market volatility or other unusual market conditions. In
addition, tracking error may result because a fund incurs fees and
expenses, while the Underlying Index does
not. |
∎ |
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. |
∎ |
U.S. Government
Mortgage-Related Securities Risk — There are a number of
important differences among the agencies and instrumentalities of the U.S.
Government that issue mortgage-related securities and among the securities
that they issue. Mortgage-related securities guaranteed by the Government
National Mortgage Association (“GNMA” or “Ginnie Mae”) are guaranteed as
to the timely payment of principal and interest by GNMA and such guarantee
is backed by the full faith and credit of the United States. GNMA
securities also are supported by the right of GNMA to borrow funds from
the U.S. Treasury to make payments under its guarantee. Mortgage-related
securities issued by Fannie Mae or Freddie Mac are solely the obligations
of Fannie Mae or Freddie Mac, as the case may be, and are not backed by or
entitled to the full faith and credit of the United States but are
supported by the right of the issuer to borrow from the
Treasury. |
∎ |
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. |
∎ |
Warrants Risk
— If the price of the underlying stock does not rise above
the exercise price before the warrant expires, the warrant generally
expires without any value and the Fund will lose any amount it paid for
the warrant. Thus, investments in warrants may involve substantially more
risk than investments in common stock. Warrants may trade in the same
markets as their underlying stock; however, the price of the warrant does
not necessarily move with the price of the underlying
stock. |
∎ |
When-Issued and
Delayed Delivery Securities and Forward Commitments Risk —
When-issued and delayed delivery securities and forward commitments
involve the risk that the security the Fund buys will lose value prior to
its delivery. There also is the risk that the security will not be issued
or that the other party to the transaction will not meet its obligation.
If this occurs, the Fund may lose both the investment opportunity for the
assets it set aside to pay for the security and any gain in the security’s
price. |
∎ |
Zero Coupon
Securities Risk —
While interest payments are not made on such securities, holders of such
securities are deemed to have received income (“phantom income”) annually,
notwithstanding that cash may not be received currently. The effect of
owning instruments that do not make current interest payments is that a
fixed yield is earned not only on the original investment but also, in
effect, on all discount accretion during the life of the obligations. This
implicit reinvestment of earnings at a fixed rate eliminates the risk of
being unable to invest distributions at a rate as high as the implicit
yield on the zero coupon bond, but at the same time eliminates the
holder’s ability to reinvest at higher rates in the future. For this
reason, some of these securities may be subject to substantially greater
price fluctuations during periods of changing market interest rates than
are comparable securities that pay interest currently. Longer term zero
coupon bonds are more exposed to interest rate risk than shorter term zero
coupon bonds. These investments benefit the issuer by mitigating its need
for cash to meet debt service, but also require a higher rate of return to
attract investors who are willing to defer receipt of
cash. |
|
1 Year | 5 Years | 10 Years | |||||||||
LifePath
Dynamic 2025 Fund — Class K Shares |
||||||||||||
Return
Before Taxes |
% | % | ||||||||||
Return
After Taxes on Distributions |
% | % | ||||||||||
Return
After Taxes on Distributions and Sale of Fund Shares |
% | % | ||||||||||
LifePath
Dynamic 2025 Fund Custom Benchmark (Reflects no deduction for fees, expenses or taxes) |
% | % | ||||||||||
Russell
1000®
Index (Reflects no deduction for fees, expenses or taxes) |
% | % |
Portfolio
Manager |
Portfolio Manager of the Fund Since | Title | ||
Philip
Green |
2016 | Managing Director of BlackRock, Inc. | ||
Chris
Chung, CFA |
2020 | Managing Director of BlackRock, Inc. | ||
Michael
Pensky, CFA |
2024 | Managing Director of BlackRock, Inc. |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
Class K Shares | ||||
Management
Fee1 |
|||||
Distribution
and/or Service (12b-1) Fees |
|||||
Other
Expenses1,2,3,4 |
|||||
Administration
Fees1 |
|||||
Independent
Expenses2,3,4 |
|||||
Acquired
Fund Fees and Expenses1,3 |
|||||
Total
Annual Fund Operating Expenses3 |
|||||
Fee
Waivers and/or Expense Reimbursements1,4 |
( |
||||
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements1,4 |
1 | As
described in the “Management of the Funds” section of the Fund’s
prospectus beginning on page 199, BlackRock Advisors, LLC (“BAL”) and BFA
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 of the Fund, through |
2 |
3 |
4 | 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 | |||||||||||||
Class
K Shares |
$ | $ | $ | $ |
Years Until Retirement | Equity Funds (includes REITs)1 |
Fixed‑Income Funds1 | ||||||||
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 | % | ||||||
1 BFA may adjust the
allocation to equity and fixed-income in the Fund, based on an assessment
of the current market conditions and the potential contribution of each
asset class to the expected risk and return characteristics of the Fund.
In general, the adjustments will be limited to +/- 10% relative to the
target allocations. |
|
∎ |
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: |
∎ |
Allocation
Risk — The Fund’s ability to achieve its investment
objective depends upon BFA’S skill in determining the Fund’s strategic
asset class allocation and in selecting the best mix of Underlying Funds
and direct investments. There is a risk that BFA’s evaluations and
assumptions regarding asset classes or 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. |
∎ |
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. |
∎ |
Investments in
Underlying Funds Risk — The Fund’s investments are
concentrated 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 equity and bond markets
and 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. |
∎ |
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. |
∎ |
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. |
∎ |
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: |
∎ |
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,
and the rules thereunder. Increases and decreases in the value of the
Fund’s portfolio will be magnified when the Fund uses
leverage. |
∎ |
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. |
∎ |
Collateralized
Debt Obligations Risk — In addition to the typical risks
associated with fixed-income securities and asset-backed securities,
collateralized debt obligations (“CDOs”), including collateralized loan
obligations, carry additional risks including, but not limited to:
(i) the possibility that distributions from collateral securities
will not be adequate to make interest or other payments; (ii) the
risk that the collateral may default or decline in value or be downgraded,
if rated by a nationally recognized statistical rating organization;
(iii) the Fund may invest in tranches of CDOs that are subordinate to
other tranches; (iv) the structure and complexity of the transaction
and the legal documents could lead to disputes among investors regarding
the characterization of proceeds; (v) the investment return achieved
by the Fund could be significantly different than those predicted by
financial models; (vi) the lack of a readily available secondary
market for CDOs; (vii) the risk of forced “fire sale” liquidation due
to technical defaults such as coverage test failures; and (viii) the
CDO’s manager may perform
poorly. |
∎ |
Commodities
Related Investments Risk — Exposure to the commodities
markets may subject the Fund to greater volatility than investments in
traditional securities. The value of commodity-linked derivative
investments may be affected by changes in overall market movements,
commodity index volatility, changes in inflation, interest rates, or
factors affecting a particular industry or commodity, such as drought,
floods, weather, embargoes, tariffs and international economic, political
and regulatory developments. |
∎ |
Concentration
Risk — To the extent that the Fund or 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, the Fund or 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. |
∎ |
Convertible
Securities Risk — The market value of a convertible security
performs like that of a regular debt security; that is, if market interest
rates rise, the value of a convertible security usually falls. In
addition, convertible securities are subject to the risk that the issuer
will not be able to pay interest, principal or dividends when due, and
their market value may change based on changes in the issuer’s credit
rating or the market’s perception of the issuer’s creditworthiness. Since
it derives a portion of its value from the common stock into which it may
be converted, a convertible security is also subject to the same types of
market and issuer risks that apply to the underlying common stock,
including the potential for increased volatility in the price of the
convertible security. |
∎ |
Corporate Loans
Risk — Commercial banks and other financial institutions or
institutional investors make corporate loans to companies that need
capital to grow or restructure. Borrowers generally pay interest on
corporate loans at rates that change in response to changes in market
interest rates such as the Secured Overnight Financing Rate (“SOFR”), the
London Interbank Offered Rate (“LIBOR”) or the prime rates of U.S. banks.
As a result, the value of corporate loan investments is generally less
exposed to the adverse effects of shifts in market interest rates than
investments that pay a fixed rate of interest. The market for corporate
loans may be subject to irregular trading activity and wide bid/ask
spreads. In addition, transactions in corporate loans may settle on a
delayed basis. As a |
result,
the proceeds from the sale of corporate loans may not be readily available
to make additional investments or to meet the Fund’s redemption
obligations. To the extent the extended settlement process gives rise to
short-term liquidity needs, the Fund may hold additional cash, sell
investments or temporarily borrow from banks and other
lenders. |
∎ |
Counterparty
Risk — The counterparty to an over‑the‑counter derivatives
contract or a borrower of the Fund’s securities may be unable or unwilling
to make timely principal, interest or settlement payments, or otherwise to
honor its obligations. Any such failure to honor its obligations may cause
significant losses to the Fund. |
∎ |
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. |
∎ |
Distressed
Securities Risk — Distressed securities are speculative and
involve substantial risks in addition to the risks of investing in junk
bonds. The Fund will generally not receive interest payments on the
distressed securities and may incur costs to protect its investment. In
addition, distressed securities involve the substantial risk that
principal will not be repaid. These securities may present a substantial
risk of default or may be in default at the time of investment. The Fund
may incur additional expenses to the extent it is required to seek
recovery upon a default in the payment of principal of or interest on its
portfolio holdings. In any reorganization or liquidation proceeding
relating to a portfolio company, the Fund may lose its entire investment
or may be required to accept cash or securities with a value less than its
original investment. Distressed securities and any securities received in
an exchange for such securities may be subject to restrictions on
resale. |
∎ |
Dollar Rolls
Risk — Dollar rolls involve the risk that the market value
of the securities that the Fund is committed to buy may decline below the
price of the securities the Fund has sold. These transactions may involve
leverage. |
∎ |
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 — A natural disaster could occur in a geographic region
in which the Fund invests, which could adversely affect the economy or the
business operations of companies in the specific geographic region,
causing an adverse impact on the Fund’s investments in, or which are
exposed to, the affected region. |
∎ |
High Portfolio
Turnover Risk — The Fund may engage in active and frequent
trading of its portfolio securities. High portfolio turnover (more than
100%) may result in increased transaction costs to the Fund, including
brokerage commissions, dealer mark‑ups and other transaction costs on the
sale of the securities and on reinvestment in other securities. The sale
of Fund portfolio securities may result in the realization and/or
distribution to shareholders of higher capital gains or losses as compared
to a fund with less active trading policies. These effects of higher than
normal portfolio turnover may adversely affect Fund
performance. |
∎ |
High Yield
Bonds Risk — Although junk bonds generally pay higher rates
of interest than investment grade bonds, junk bonds are high risk
investments that are considered speculative and may cause income and
principal losses for 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. |
∎ |
Indexed and
Inverse Securities Risk — Indexed and inverse securities
provide a potential return based on a particular index of value or
interest rates. The Fund’s return on these securities will be subject to
risk with respect to the value of the particular index. These securities
are subject to leverage risk and correlation risk. Certain indexed and
inverse securities have greater sensitivity to changes in interest rates
or index levels than other securities, and the Fund’s investment in such
instruments may decline significantly in value if interest rates or index
levels move in a way Fund management does not
anticipate. |
∎ |
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. |
∎ |
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. |
∎ |
Investment
Style Risk — Under certain market conditions, growth
investments have performed better during the later stages of economic
expansion and value investments have performed better during periods of
economic recovery. Therefore, these investment styles may over time go in
and out of favor. At times when an investment style used by the Fund or an
Underlying Fund is out of favor, the Fund may underperform other funds
that use different investment
styles. |
∎ |
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. |
∎ |
Management
Risk — If a passively managed ETF does not fully replicate
the underlying index, it is subject to the risk that the manager’s
investment management strategy may not produce the intended
results. |
∎ |
Mezzanine
Securities Risk — Mezzanine securities carry the risk that
the issuer will not be able to meet its obligations and that the equity
securities purchased with the mezzanine investments may lose
value. |
∎ |
Model Risk
— The Fund seeks to pursue its investment objective by using
proprietary models that incorporate quantitative analysis. Investments
selected using these models may perform differently than as forecasted due
to the factors incorporated into the models and the weighting of each
factor, changes from historical trends, and issues in the construction and
implementation of the models (including, but not limited to, software
issues and other technological issues). There is no guarantee that
BlackRock’s use of these models will result in effective investment
decisions for the
Fund. |
∎ |
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. |
∎ |
Municipal
Securities Risks — Municipal securities risks include the
ability of the issuer to repay the obligation, the relative lack of
information about certain issuers of municipal securities, and the
possibility of future legislative changes which could affect the market
for and value of municipal securities. Budgetary constraints of local,
state, and federal governments upon which the issuers may be relying for
funding may also impact municipal securities. These risks
include: |
∎ |
National Closed
Market Trading Risk — To the extent that the underlying
securities and/or other assets 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 and/or other assets 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. |
∎ |
“New Issues”
Risk — “New issues” are initial public offerings (“IPOs”) of
equity securities. Securities issued in IPOs have no trading history, and
information about the companies may be available for very limited periods.
In addition, the prices of securities sold in IPOs may be highly volatile
or may decline shortly after the
IPO. |
∎ |
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. |
∎ |
Pay-in-kind
Bonds Risk — Similar to zero coupon obligations, pay-in-kind
bonds also carry additional risk as holders of these types of securities
realize no cash until the cash payment date unless a portion of such
securities is sold and, if the issuer defaults, the Fund may obtain no
return at all on its investment. The market price of pay-in-kind bonds is
affected by interest rate changes to a greater extent, and therefore tends
to be more volatile, than that of securities which pay interest in
cash. |
∎ |
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. |
∎ |
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. |
∎ |
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. 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. |
∎ |
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.
An 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 and Purchase and Sale Contracts Risk — If the
other party to a repurchase agreement or purchase and sale contract
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 in either
situation and the market value of the security declines, the Fund may lose
money. |
∎ |
Reverse
Repurchase Agreements Risk — Reverse repurchase agreements
involve the sale of securities held by the Fund with an agreement to
repurchase the securities at an agreed-upon price, date and interest
payment. Reverse repurchase agreements involve the risk that the other
party may fail to return the securities in a timely manner or at all. The
Fund could lose money if it is unable to recover the securities and the
value of the collateral held by the Fund, including the value of the
investments made with cash collateral, is less than the value of the
securities. These events could also trigger adverse tax consequences for
the Fund. In addition, reverse repurchase agreements involve the risk that
the interest income earned in the investment of the proceeds will be less
than the interest expense. |
∎ |
Risks of Loan
Assignments and Participations — As the purchaser of an
assignment, the Fund typically succeeds to all the rights and obligations
of the assigning institution and becomes a lender under the credit
agreement with respect to the debt obligation; however, the Fund may not
be able unilaterally to enforce all rights and remedies under the loan and
with regard to any associated collateral. Because assignments may be
arranged through private negotiations between potential assignees and
potential assignors, the rights and obligations acquired by the Fund as
the purchaser of an assignment may differ from, and be more limited than,
those held by the assigning lender. In addition, if the loan is
foreclosed, the Fund could become part owner of any collateral and could
bear the costs and liabilities of owning and disposing of the collateral.
The Fund may be required to pass along to a purchaser that buys a loan
from the Fund by way of assignment a portion of any fees to which the Fund
is entitled under the loan. In connection with purchasing participations,
the Fund generally will have no right to enforce compliance by the
borrower with the terms of the loan agreement relating to the loan, nor
any rights of set‑off against the borrower, and the Fund may not directly
benefit from any collateral supporting the loan in which it has purchased
the participation. As a result, the Fund will be subject to the credit
risk of both the borrower and the lender that is selling the
participation. In the event of the insolvency of the lender selling a
participation, the Fund may be treated as a general creditor of the lender
and may not benefit from any set‑off between the lender and the
borrower. |
∎ |
Second Lien
Loans Risk — Second lien loans generally are subject to
similar risks as those associated with investments in senior loans.
Because second lien loans are subordinated or unsecured and thus lower in
priority of payment to senior loans, they are subject to the additional
risk that the cash flow of the borrower and property securing the loan or
debt, if any, may be insufficient to meet scheduled payments after giving
effect to the senior secured obligations of the
borrower. |
∎ |
Senior Loans
Risk — There is less readily available, reliable information
about most senior loans than is the case for many other types of
securities. An economic downturn generally leads to a higher non‑payment
rate, and a senior loan may lose significant value before a default
occurs. Moreover, any specific collateral used to secure a senior loan may
decline in value or become illiquid, which would adversely affect the
senior loan’s value. No active trading market may exist for certain senior
loans, which may impair the ability of the Fund to realize full value in
the event of the need to sell a senior loan and which may make it
difficult to value senior loans. Although senior loans in which the Fund
will invest generally will be secured by specific collateral, there can be
no assurance that liquidation of such collateral would satisfy the
borrower’s obligation in the event of non‑payment of scheduled interest or
principal or that such collateral could be readily liquidated. To the
extent that a senior loan is collateralized by stock in the borrower or
its subsidiaries, such stock may lose all of its value in the event of the
bankruptcy of the borrower. Uncollateralized senior loans involve a
greater risk of loss. |
∎ |
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 (“NAV”). 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. |
∎ |
Short Sales
Risk — Because making short sales in securities that it does
not own exposes the Fund to the risks associated with those securities,
such short sales involve speculative exposure risk. The Fund will incur a
loss as a result of a short sale if the price of the security increases
between the date of the short sale and the date on which the Fund replaces
the security sold short. |
∎ |
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. |
∎ |
Small Cap and
Emerging Growth Securities Risk — Small cap or emerging
growth companies may have limited product lines or markets. They may be
less financially secure than larger, more established companies. They may
depend on a more limited management group than larger capitalized
companies. |
∎ |
Sovereign Debt
Risk — Sovereign debt instruments are subject to the risk
that a governmental entity may delay or refuse to pay interest or repay
principal on its sovereign debt, due, for example, to cash flow problems,
insufficient foreign currency reserves, political considerations, the
relative size of the governmental entity’s debt position in relation to
the economy or the failure to put in place economic reforms required by
the International Monetary Fund or other multilateral
agencies. |
∎ |
Structured
Notes Risk — Structured notes and other related instruments
purchased by the Fund are generally privately negotiated debt obligations
where the principal and/or interest is determined by reference to the
performance of a specific asset, benchmark asset, market or interest rate
(“reference measure”). The purchase of structured notes exposes the Fund
to the credit risk of the issuer of the structured product. Structured
notes may be leveraged, increasing the volatility of each structured
note’s value relative to the change in the reference measure. Structured
notes may also be less liquid and more difficult to price accurately than
less complex securities and instruments or more traditional debt
securities. |
∎ |
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. |
∎ |
Supranational
Entities Risk — The Fund may invest in obligations issued or
guaranteed by the World Bank. The government members, or “stockholders,”
usually make initial capital contributions to the World Bank and in many
cases are committed to make additional capital contributions if the World
Bank is unable to repay its borrowings. There is no guarantee that one or
more stockholders of the World Bank will continue to make any necessary
additional capital contributions. If such contributions are not made, the
entity may be unable to pay interest or repay principal on its debt
securities, and the Fund may lose money on such
investments. |
∎ |
Tender Option
Bonds and Related Securities Risk — The Fund’s participation
in tender option bond transactions may reduce the Fund’s returns and/or
increase volatility. Investments in tender option bond transactions expose
the Fund to counterparty risk and leverage risk. An investment in a tender
option bond transaction typically will involve greater risk than an
investment in a municipal fixed rate security, including the risk of loss
of principal. Distributions on residual inverse floating rate interest
tender option bonds (“TOB Residuals”) will bear an inverse relationship to
short-term municipal security interest rates. Distributions on TOB
Residuals paid to the Fund will be reduced or, in the extreme, eliminated
as short-term municipal interest rates rise and will increase when
short-term municipal interest rates fall. TOB Residuals generally will
underperform the market for fixed rate municipal securities in a rising
interest rate environment. The Fund may invest in beneficial interests in
a special purpose trust formed for the purpose of holding Municipal Bonds
contributed by one or more funds (a “TOB Trust”) on either a non‑recourse
or recourse basis. If the Fund invests in a TOB Trust on a recourse basis,
it could suffer losses in excess of the value of its TOB
Residuals. |
∎ |
Tracking Error
Risk — The Fund may be subject to 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 (including shares of the Underlying Funds) 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,
among other reasons. These risks may be heightened during times of
increased market volatility or other unusual market conditions. In
addition, tracking error may result because a fund incurs fees and
expenses, while the Underlying Index does
not. |
∎ |
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. |
∎ |
U.S. Government
Mortgage-Related Securities Risk — There are a number of
important differences among the agencies and instrumentalities of the U.S.
Government that issue mortgage-related securities and among the securities
that they issue. Mortgage-related securities guaranteed by the Government
National Mortgage Association (“GNMA” or “Ginnie Mae”) are guaranteed as
to the timely payment of principal and interest by GNMA and such guarantee
is backed by the full faith and credit of the United States. GNMA
securities also are supported by the right of GNMA to borrow funds from
the U.S. Treasury to make payments under its guarantee. Mortgage-related
securities issued by Fannie Mae or Freddie Mac are solely the obligations
of Fannie Mae or Freddie Mac, as the case may be, and are not backed by or
entitled to the full faith and credit of the United States but are
supported by the right of the issuer to borrow from the
Treasury. |
∎ |
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. |
∎ |
Warrants Risk
— If the price of the underlying stock does not rise above
the exercise price before the warrant expires, the warrant generally
expires without any value and the Fund will lose any amount it paid for
the warrant. Thus, investments in warrants may involve substantially more
risk than investments in common stock. Warrants may trade in the same
markets as their underlying stock; however, the price of the warrant does
not necessarily move with the price of the underlying
stock. |
∎ |
When-Issued and
Delayed Delivery Securities and Forward Commitments Risk —
When-issued and delayed delivery securities and forward commitments
involve the risk that the security the Fund buys will lose value prior to
its delivery. There also is the risk that the security will not be issued
or that the other party to the transaction will not meet its obligation.
If this occurs, the Fund may lose both the investment opportunity for the
assets it set aside to pay for the security and any gain in the security’s
price. |
∎ |
Zero Coupon
Securities Risk —
While interest payments are not made on such securities, holders of such
securities are deemed to have received income (“phantom income”) annually,
notwithstanding that cash may not be received currently. The effect of
owning instruments that do not make current interest payments is that a
fixed yield is earned not only on the original investment but also, in
effect, on all discount accretion during the life of the obligations. This
implicit reinvestment of earnings at a fixed rate eliminates the risk of
being unable to invest distributions at a rate as high as the implicit
yield on the zero coupon bond, but at the same time eliminates the
holder’s ability to reinvest at higher rates in the future. For this
reason, some of these securities may be subject to substantially greater
price fluctuations during periods of changing market interest rates than
are comparable securities that pay interest currently. Longer term zero
coupon bonds are more exposed to interest rate risk than shorter term zero
coupon bonds. These investments benefit the issuer by mitigating its need
for cash to meet debt service, but also require a higher rate of return to
attract investors who are willing to defer receipt of
cash. |
|
1 Year | 5 Years | 10 Years | |||||||||
LifePath
Dynamic 2030 Fund — Class K Shares |
||||||||||||
Return
Before Taxes |
% | % | % | |||||||||
Return
After Taxes on Distributions |
% | % | % | |||||||||
Return
After Taxes on Distributions and Sale of Fund Shares |
% | % | % | |||||||||
LifePath
Dynamic 2030 Fund Custom Benchmark (Reflects no deduction for fees, expenses or taxes) |
% | % | % | |||||||||
Russell
1000®
Index (Reflects no deduction for fees, expenses or taxes) |
% | % | % |
Portfolio
Manager |
Portfolio Manager of the Fund Since | Title | ||
Philip
Green |
2016 | Managing Director of BlackRock, Inc. | ||
Chris
Chung, CFA |
2020 | Managing Director of BlackRock, Inc. | ||
Michael
Pensky, CFA |
2024 | Managing Director of BlackRock, Inc. |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
Class K Shares | ||||
Management
Fee1 |
|||||
Distribution
and/or Service (12b-1) Fees |
|||||
Other
Expenses1,2,3,4 |
|||||
Administration
Fees1 |
|||||
Independent
Expenses2,3,4 |
|||||
Acquired
Fund Fees and Expenses1,3 |
|||||
Total
Annual Fund Operating Expenses3 |
|||||
Fee
Waivers and/or Expense Reimbursements1,4 |
( |
||||
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements1,4 |
1 | As
described in the “Management of the Funds” section of the Fund’s
prospectus beginning on page 199, BlackRock Advisors, LLC (“BAL”) and BFA
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 of the Fund, through |
2 |
3 |
4 | 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 | |||||||||||||
Class
K Shares |
$ | $ | $ | $ |
Years Until Retirement | Equity Funds (includes REITs)1 |
Fixed‑Income Funds1 | ||||||||
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 | % | ||||||
1 BFA may adjust the
allocation to equity and fixed-income in the Fund, based on an assessment
of the current market conditions and the potential contribution of each
asset class to the expected risk and return characteristics of the Fund.
In general, the adjustments will be limited to +/- 10% relative to the
target allocations. |
|
∎ |
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: |
∎ |
Allocation
Risk — The Fund’s ability to achieve its investment
objective depends upon BFA’S skill in determining the Fund’s strategic
asset class allocation and in selecting the best mix of Underlying Funds
and direct investments. There is a risk that BFA’s evaluations and
assumptions regarding asset classes or 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. |
∎ |
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. |
∎ |
Investments in
Underlying Funds Risk — The Fund’s investments are
concentrated 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 equity and bond markets
and 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. |
∎ |
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. |
∎ |
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. |
∎ |
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: |
∎ |
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,
and the rules thereunder. Increases and decreases in the value of the
Fund’s portfolio will be magnified when the Fund uses
leverage. |
∎ |
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. |
∎ |
Collateralized
Debt Obligations Risk — In addition to the typical risks
associated with fixed-income securities and asset-backed securities,
collateralized debt obligations (“CDOs”), including collateralized loan
obligations, carry additional risks including, but not limited to:
(i) the possibility that distributions from collateral securities
will not be adequate to make interest or other payments; (ii) the
risk that the collateral may default or decline in value or be downgraded,
if rated by a nationally recognized statistical rating organization;
(iii) the Fund may invest in tranches of CDOs that are subordinate to
other tranches; (iv) the structure and complexity of the transaction
and the legal documents could lead to disputes among investors regarding
the characterization of proceeds; (v) the investment return achieved
by the Fund could be significantly different than those predicted by
financial models; (vi) the lack of a readily available secondary
market for CDOs; (vii) the risk of forced “fire sale” liquidation due
to technical defaults such as coverage test failures; and (viii) the
CDO’s manager may perform
poorly. |
∎ |
Commodities
Related Investments Risk — Exposure to the commodities
markets may subject the Fund to greater volatility than investments in
traditional securities. The value of commodity-linked derivative
investments may be affected by changes in overall market movements,
commodity index volatility, changes in inflation, interest rates, or
factors affecting a particular industry or commodity, such as drought,
floods, weather, embargoes, tariffs and international economic, political
and regulatory developments. |
∎ |
Concentration
Risk — To the extent that the Fund or 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, the Fund or 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. |
∎ |
Convertible
Securities Risk — The market value of a convertible security
performs like that of a regular debt security; that is, if market interest
rates rise, the value of a convertible security usually falls. In
addition, convertible securities are subject to the risk that the issuer
will not be able to pay interest, principal or dividends when due, and
their market value may change based on changes in the issuer’s credit
rating or the market’s perception of the issuer’s creditworthiness. Since
it derives a portion of its value from the common stock into which it may
be converted, a convertible security is also subject to the same types of
market and issuer risks that apply to the underlying common stock,
including the potential for increased volatility in the price of the
convertible security. |
∎ |
Corporate Loans
Risk — Commercial banks and other financial institutions or
institutional investors make corporate loans to companies that need
capital to grow or restructure. Borrowers generally pay interest on
corporate loans at rates that change in response to changes in market
interest rates such as the Secured Overnight Financing Rate (“SOFR”), the
London Interbank Offered Rate (“LIBOR”) or the prime rates of U.S. banks.
As a result, the value of corporate loan investments is generally less
exposed to the adverse effects of shifts in market interest rates than
investments that pay a fixed rate of interest. The market for corporate
loans may be subject to irregular trading activity and wide bid/ask
spreads. In addition, transactions in corporate loans may settle on a
delayed basis. As a result, the proceeds from the sale of corporate loans
may not be readily available to make additional investments
or |
to
meet the Fund’s redemption obligations. To the extent the extended
settlement process gives rise to short-term liquidity needs, the Fund may
hold additional cash, sell investments or temporarily borrow from banks
and other lenders. |
∎ |
Counterparty
Risk — The counterparty to an over‑the‑counter derivatives
contract or a borrower of the Fund’s securities may be unable or unwilling
to make timely principal, interest or settlement payments, or otherwise to
honor its obligations. Any such failure to honor its obligations may cause
significant losses to the Fund. |
∎ |
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. |
∎ |
Distressed
Securities Risk — Distressed securities are speculative and
involve substantial risks in addition to the risks of investing in junk
bonds. The Fund will generally not receive interest payments on the
distressed securities and may incur costs to protect its investment. In
addition, distressed securities involve the substantial risk that
principal will not be repaid. These securities may present a substantial
risk of default or may be in default at the time of investment. The Fund
may incur additional expenses to the extent it is required to seek
recovery upon a default in the payment of principal of or interest on its
portfolio holdings. In any reorganization or liquidation proceeding
relating to a portfolio company, the Fund may lose its entire investment
or may be required to accept cash or securities with a value less than its
original investment. Distressed securities and any securities received in
an exchange for such securities may be subject to restrictions on
resale. |
∎ |
Dollar Rolls
Risk — Dollar rolls involve the risk that the market value
of the securities that the Fund is committed to buy may decline below the
price of the securities the Fund has sold. These transactions may involve
leverage. |
∎ |
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 — A natural disaster could occur in a geographic region
in which the Fund invests, which could adversely affect the economy or the
business operations of companies in the specific geographic region,
causing an adverse impact on the Fund’s investments in, or which are
exposed to, the affected region. |
∎ |
High Portfolio
Turnover Risk — The Fund may engage in active and frequent
trading of its portfolio securities. High portfolio turnover (more than
100%) may result in increased transaction costs to the Fund, including
brokerage commissions, dealer mark‑ups and other transaction costs on the
sale of the securities and on reinvestment in other securities. The sale
of Fund portfolio securities may result in the realization and/or
distribution to shareholders of higher capital gains or losses as compared
to a fund with less active trading policies. These effects of higher than
normal portfolio turnover may adversely affect Fund
performance. |
∎ |
High Yield
Bonds Risk — Although junk bonds generally pay higher rates
of interest than investment grade bonds, junk bonds are high risk
investments that are considered speculative and may cause income and
principal losses for 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. |
∎ |
Indexed and
Inverse Securities Risk — Indexed and inverse securities
provide a potential return based on a particular index of value or
interest rates. The Fund’s return on these securities will be subject to
risk with respect to the value of the particular index. These securities
are subject to leverage risk and correlation risk. Certain indexed and
inverse securities have greater sensitivity to changes in interest rates
or index levels than other securities, and the Fund’s investment in such
instruments may decline significantly in value if interest rates or index
levels move in a way Fund management does not
anticipate. |
∎ |
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. |
∎ |
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. |
∎ |
Investment
Style Risk — Under certain market conditions, growth
investments have performed better during the later stages of economic
expansion and value investments have performed better during periods of
economic recovery. Therefore, these investment styles may over time go in
and out of favor. At times when an investment style used by the Fund or an
Underlying Fund is out of favor, the Fund may underperform other funds
that use different investment
styles. |
∎ |
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. |
∎ |
Management
Risk — If a passively managed ETF does not fully replicate
the underlying index, it is subject to the risk that the manager’s
investment management strategy may not produce the intended
results. |
∎ |
Mezzanine
Securities Risk — Mezzanine securities carry the risk that
the issuer will not be able to meet its obligations and that the equity
securities purchased with the mezzanine investments may lose
value. |
∎ |
Model Risk
— The Fund seeks to pursue its investment objective by using
proprietary models that incorporate quantitative analysis. Investments
selected using these models may perform differently than as forecasted due
to the factors incorporated into the models and the weighting of each
factor, changes from historical trends, and issues in the construction and
implementation of the models (including, but not limited to, software
issues and other technological issues). There is no guarantee that
BlackRock’s use of these models will result in effective investment
decisions for the
Fund. |
∎ |
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. |
∎ |
Municipal
Securities Risks — Municipal securities risks include the
ability of the issuer to repay the obligation, the relative lack of
information about certain issuers of municipal securities, and the
possibility of future legislative changes which could affect the market
for and value of municipal securities. Budgetary constraints of local,
state, and federal governments upon which the issuers may be relying for
funding may also impact municipal securities. These risks
include: |
∎ |
National Closed
Market Trading Risk — To the extent that the underlying
securities and/or other assets 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 and/or other assets 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. |
∎ |
“New Issues”
Risk — “New issues” are initial public offerings (“IPOs”) of
equity securities. Securities issued in IPOs have no trading history, and
information about the companies may be available for very limited periods.
In addition, the prices of securities sold in IPOs may be highly volatile
or may decline shortly after the
IPO. |
∎ |
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. |
∎ |
Pay-in-kind
Bonds Risk — Similar to zero coupon obligations, pay-in-kind
bonds also carry additional risk as holders of these types of securities
realize no cash until the cash payment date unless a portion of such
securities is sold and, if the issuer defaults, the Fund may obtain no
return at all on its investment. The market price of pay-in-kind bonds is
affected by interest rate changes to a greater extent, and therefore tends
to be more volatile, than that of securities which pay interest in
cash. |
∎ |
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. |
∎ |
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. |
∎ |
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. 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. |
∎ |
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.
An 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 and Purchase and Sale Contracts Risk — If the
other party to a repurchase agreement or purchase and sale contract
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 in either
situation and the market value of the security declines, the Fund may lose
money. |
∎ |
Reverse
Repurchase Agreements Risk — Reverse repurchase agreements
involve the sale of securities held by the Fund with an agreement to
repurchase the securities at an agreed-upon price, date and interest
payment. Reverse repurchase agreements involve the risk that the other
party may fail to return the securities in a timely manner or at all. The
Fund could lose money if it is unable to recover the securities and the
value of the collateral held by the Fund, including the value of the
investments made with cash collateral, is less than the value of the
securities. These events could also trigger adverse tax consequences for
the Fund. In addition, reverse repurchase agreements involve the risk that
the interest income earned in the investment of the proceeds will be less
than the interest expense. |
∎ |
Risks of Loan
Assignments and Participations — As the purchaser of an
assignment, the Fund typically succeeds to all the rights and obligations
of the assigning institution and becomes a lender under the credit
agreement with respect to the debt obligation; however, the Fund may not
be able unilaterally to enforce all rights and remedies under the loan and
with regard to any associated collateral. Because assignments may be
arranged through private negotiations between potential assignees and
potential assignors, the rights and obligations acquired by the Fund as
the purchaser of an assignment may differ from, and be more limited than,
those held by the assigning lender. In addition, if the loan is
foreclosed, the Fund could become part owner of any collateral and could
bear the costs and liabilities of owning and disposing of the collateral.
The Fund may be required to pass along to a purchaser that buys a loan
from the Fund by way of assignment a portion of any fees to which the Fund
is entitled under the loan. In connection with purchasing participations,
the Fund generally will have no right to enforce compliance by the
borrower with the terms of the loan agreement relating to the loan, nor
any rights of set‑off against the borrower, and the Fund may not directly
benefit from any collateral supporting the loan in which it has purchased
the participation. As a result, the Fund will be subject to the credit
risk of both the borrower and the lender that is selling the
participation. In the event of the insolvency of the lender selling a
participation, the Fund may be treated as a general creditor of the lender
and may not benefit from any set‑off between the lender and the
borrower. |
∎ |
Second Lien
Loans Risk — Second lien loans generally are subject to
similar risks as those associated with investments in senior loans.
Because second lien loans are subordinated or unsecured and thus lower in
priority of payment to senior loans, they are subject to the additional
risk that the cash flow of the borrower and property securing the loan or
debt, if any, may be insufficient to meet scheduled payments after giving
effect to the senior secured obligations of the
borrower. |
∎ |
Senior Loans
Risk — There is less readily available, reliable information
about most senior loans than is the case for many other types of
securities. An economic downturn generally leads to a higher non‑payment
rate, and a senior loan may lose significant value before a default
occurs. Moreover, any specific collateral used to secure a senior loan may
decline in value or become illiquid, which would adversely affect the
senior loan’s value. No active trading market may exist for certain senior
loans, which may impair the ability of the Fund to realize full value in
the event of the need to sell a senior loan and which may make it
difficult to value senior loans. Although senior loans in which the Fund
will invest generally will be secured by specific collateral, there can be
no assurance that liquidation of such collateral would satisfy the
borrower’s obligation in the event of non‑payment of scheduled interest or
principal or that such collateral could be readily liquidated. To the
extent that a senior loan is collateralized by stock in the borrower or
its subsidiaries, such stock may lose all of its value in the event of the
bankruptcy of the borrower. Uncollateralized senior loans involve a
greater risk of loss. |
∎ |
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 (“NAV”). 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. |
∎ |
Short Sales
Risk — Because making short sales in securities that it does
not own exposes the Fund to the risks associated with those securities,
such short sales involve speculative exposure risk. The Fund will incur a
loss as a result of a short sale if the price of the security increases
between the date of the short sale and the date on which the Fund replaces
the security sold short. |
∎ |
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. |
∎ |
Small Cap and
Emerging Growth Securities Risk — Small cap or emerging
growth companies may have limited product lines or markets. They may be
less financially secure than larger, more established companies. They may
depend on a more limited management group than larger capitalized
companies. |
∎ |
Sovereign Debt
Risk — Sovereign debt instruments are subject to the risk
that a governmental entity may delay or refuse to pay interest or repay
principal on its sovereign debt, due, for example, to cash flow problems,
insufficient foreign currency reserves, political considerations, the
relative size of the governmental entity’s debt position in relation to
the economy or the failure to put in place economic reforms required by
the International Monetary Fund or other multilateral
agencies. |
∎ |
Structured
Notes Risk — Structured notes and other related instruments
purchased by the Fund are generally privately negotiated debt obligations
where the principal and/or interest is determined by reference to the
performance of a specific asset, benchmark asset, market or interest rate
(“reference measure”). The purchase of structured notes exposes the Fund
to the credit risk of the issuer of the structured product. Structured
notes may be leveraged, increasing the volatility of each structured
note’s value relative to the change in the reference measure. Structured
notes may also be less liquid and more difficult to price accurately than
less complex securities and instruments or more traditional debt
securities. |
∎ |
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. |
∎ |
Supranational
Entities Risk — The Fund may invest in obligations issued or
guaranteed by the World Bank. The government members, or “stockholders,”
usually make initial capital contributions to the World Bank and in many
cases are committed to make additional capital contributions if the World
Bank is unable to repay its borrowings. There is no guarantee that one or
more stockholders of the World Bank will continue to make any necessary
additional capital contributions. If such contributions are not made, the
entity may be unable to pay interest or repay principal on its debt
securities, and the Fund may lose money on such
investments. |
∎ |
Tender Option
Bonds and Related Securities Risk — The Fund’s participation
in tender option bond transactions may reduce the Fund’s returns and/or
increase volatility. Investments in tender option bond transactions expose
the Fund to counterparty risk and leverage risk. An investment in a tender
option bond transaction typically will involve greater risk than an
investment in a municipal fixed rate security, including the risk of loss
of principal. Distributions on residual inverse floating rate interest
tender option bonds (“TOB Residuals”) will bear an inverse relationship to
short-term municipal security interest rates. Distributions on TOB
Residuals paid to the Fund will be reduced or, in the extreme, eliminated
as short-term municipal interest rates rise and will increase when
short-term municipal interest rates fall. TOB Residuals generally will
underperform the market for fixed rate municipal securities in a rising
interest rate environment. The Fund may invest in beneficial interests in
a special purpose trust formed for the purpose of holding Municipal Bonds
contributed by one or more funds (a “TOB Trust”) on either a non‑recourse
or recourse basis. If the Fund invests in a TOB Trust on a recourse basis,
it could suffer losses in excess of the value of its TOB
Residuals. |
∎ |
Tracking Error
Risk — The Fund may be subject to 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 (including shares of the Underlying Funds) 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,
among other reasons. These risks may be heightened during times of
increased market volatility or other unusual market conditions. In
addition, tracking error may result because a fund incurs fees and
expenses, while the Underlying Index does
not. |
∎ |
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. |
∎ |
U.S. Government
Mortgage-Related Securities Risk — There are a number of
important differences among the agencies and instrumentalities of the U.S.
Government that issue mortgage-related securities and among the securities
that they issue. Mortgage-related securities guaranteed by the Government
National Mortgage Association (“GNMA” or “Ginnie Mae”) are guaranteed as
to the timely payment of principal and interest by GNMA and such guarantee
is backed by the full faith and credit of the United States. GNMA
securities also are supported by the right of GNMA to borrow funds from
the U.S. Treasury to make payments under its guarantee. Mortgage-related
securities issued by Fannie Mae or Freddie Mac are solely the obligations
of Fannie Mae or Freddie Mac, as the case may be, and are not backed by or
entitled to the full faith and credit of the United States but are
supported by the right of the issuer to borrow from the
Treasury. |
∎ |
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. |
∎ |
Warrants Risk
— If the price of the underlying stock does not rise above
the exercise price before the warrant expires, the warrant generally
expires without any value and the Fund will lose any amount it paid for
the warrant. Thus, investments in warrants may involve substantially more
risk than investments in common stock. Warrants may trade in the same
markets as their underlying stock; however, the price of the warrant does
not necessarily move with the price of the underlying
stock. |
∎ |
When-Issued and
Delayed Delivery Securities and Forward Commitments Risk —
When-issued and delayed delivery securities and forward commitments
involve the risk that the security the Fund buys will lose value prior to
its delivery. There also is the risk that the security will not be issued
or that the other party to the transaction will not meet its obligation.
If this occurs, the Fund may lose both the investment opportunity for the
assets it set aside to pay for the security and any gain in the security’s
price. |
∎ |
Zero Coupon
Securities Risk —
While interest payments are not made on such securities, holders of such
securities are deemed to have received income (“phantom income”) annually,
notwithstanding that cash may not be received currently. The effect of
owning instruments that do not make current interest payments is that a
fixed yield is earned not only on the original investment but also, in
effect, on all discount accretion during the life of the obligations. This
implicit reinvestment of earnings at a fixed rate eliminates the risk of
being unable to invest distributions at a rate as high as the implicit
yield on the zero coupon bond, but at the same time eliminates the
holder’s ability to reinvest at higher rates in the future. For this
reason, some of these securities may be subject to substantially greater
price fluctuations during periods of changing market interest rates than
are comparable securities that pay interest currently. Longer term zero
coupon bonds are more exposed to interest rate risk than shorter term zero
coupon bonds. These investments benefit the issuer by mitigating its need
for cash to meet debt service, but also require a higher rate of return to
attract investors who are willing to defer receipt of
cash. |
For
the periods ended 12/31/23
Average
Annual Total Returns |
1 Year | 5 Years | 10 Years | |||||||||
LifePath
Dynamic 2035 Fund — Class K Shares |
||||||||||||
Return
Before Taxes |
% | % | % | |||||||||
Return
After Taxes on Distributions |
% | % | % | |||||||||
Return
After Taxes on Distributions and Sale of Fund Shares |
% | % | % | |||||||||
LifePath
Dynamic 2035 Fund Custom Benchmark (Reflects no deduction for fees, expenses or taxes) |
% | % | % | |||||||||
Russell
1000®
Index (Reflects no deduction for fees, expenses or taxes) |
% | % | % |
Portfolio
Manager |
Portfolio Manager of the Fund Since | Title | ||
Philip
Green |
2016 | Managing Director of BlackRock, Inc. | ||
Chris
Chung, CFA |
2020 | Managing Director of BlackRock, Inc. | ||
Michael
Pensky, CFA |
2024 | Managing Director of BlackRock, Inc. |
(expenses that you pay each year as a percentage of the value of your investment) |
Class K Shares | ||||
Management
Fee1 |
|||||
Distribution
and/or Service (12b-1) Fees |
|||||
Other
Expenses1,2,3,4 |
|||||
Administration
Fees1 |
|||||
Independent
Expenses2,3,4 |
|||||
Acquired
Fund Fees and Expenses1,3 |
|||||
Total
Annual Fund Operating Expenses3 |
|||||
Fee
Waivers and/or Expense Reimbursements1,4 |
( |
||||
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements1,4 |
1 | As
described in the “Management of the Funds” section of the Fund’s
prospectus beginning on page 199, BlackRock Advisors, LLC (“BAL”) and BFA
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 of the Fund, through |
2 |
3 |
4 | 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 | |||||||||||||
Class
K Shares |
$ | $ | $ | $ |
Years Until Retirement | Equity Funds (includes REITs)1 |
Fixed‑Income Funds1 | ||||||||
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 | % | ||||||
1 BFA may adjust the
allocation to equity and fixed-income in the Fund, based on an assessment
of the current market conditions and the potential contribution of each
asset class to the expected risk and return characteristics of the Fund.
In general, the adjustments will be limited to +/- 10% relative to the
target allocations. |
|
∎ |
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: |
∎ |
Allocation
Risk — The Fund’s ability to achieve its investment
objective depends upon BFA’S skill in determining the Fund’s strategic
asset class allocation and in selecting the best mix of Underlying Funds
and direct investments. There is a risk that BFA’s evaluations and
assumptions regarding asset classes or 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. |
∎ |
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. |
∎ |
Investments in
Underlying Funds Risk — The Fund’s investments are
concentrated 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 equity and bond markets
and 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. |
∎ |
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. |
∎ |
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. |
∎ |
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: |
∎ |
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,
and the rules thereunder. Increases and decreases in the value of the
Fund’s portfolio will be magnified when the Fund uses
leverage. |
∎ |
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. |
∎ |
Collateralized
Debt Obligations Risk — In addition to the typical risks
associated with fixed-income securities and asset-backed securities,
collateralized debt obligations (“CDOs”), including collateralized loan
obligations, carry additional risks including, but not limited to:
(i) the possibility that distributions from collateral securities
will not be adequate to make interest or other payments; (ii) the
risk that the collateral may default or decline in value or be downgraded,
if rated by a nationally recognized statistical rating organization;
(iii) the Fund may invest in tranches of CDOs that are subordinate to
other tranches; (iv) the structure and complexity of the transaction
and the legal documents could lead to disputes among investors regarding
the characterization of proceeds; (v) the investment return achieved
by the Fund could be significantly different than those predicted by
financial models; (vi) the lack of a readily available secondary
market for CDOs; (vii) the risk of forced “fire sale” liquidation due
to technical defaults such as coverage test failures; and (viii) the
CDO’s manager may perform
poorly. |
∎ |
Commodities
Related Investments Risk — Exposure to the commodities
markets may subject the Fund to greater volatility than investments in
traditional securities. The value of commodity-linked derivative
investments may be affected by changes in overall market movements,
commodity index volatility, changes in inflation, interest rates, or
factors affecting a particular industry or commodity, such as drought,
floods, weather, embargoes, tariffs and international economic, political
and regulatory developments. |
∎ |
Concentration
Risk — To the extent that the Fund or 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, the Fund or 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. |
∎ |
Convertible
Securities Risk — The market value of a convertible security
performs like that of a regular debt security; that is, if market interest
rates rise, the value of a convertible security usually falls. In
addition, convertible securities are subject to the risk that the issuer
will not be able to pay interest, principal or dividends when due, and
their market value may change based on changes in the issuer’s credit
rating or the market’s perception of the issuer’s creditworthiness. Since
it derives a portion of its value from the common stock into which it may
be converted, a convertible security is also subject to the same types of
market and issuer risks that apply to the underlying common stock,
including the potential for increased volatility in the price of the
convertible security. |
∎ |
Corporate Loans
Risk — Commercial banks and other financial institutions or
institutional investors make corporate loans to companies that need
capital to grow or restructure. Borrowers generally pay interest on
corporate loans at rates that change in response to changes in market
interest rates such as the Secured Overnight Financing Rate (“SOFR”), the
London Interbank Offered Rate (“LIBOR”) or the prime rates of U.S. banks.
As a result, the value of corporate loan investments is generally less
exposed to the adverse effects of shifts in market interest rates than
investments that pay a fixed rate of interest. The market for corporate
loans may be subject to irregular trading activity and wide bid/ask
spreads. In addition, transactions in corporate loans may settle on a
delayed basis. As a |
result,
the proceeds from the sale of corporate loans may not be readily available
to make additional investments or to meet the Fund’s redemption
obligations. To the extent the extended settlement process gives rise to
short-term liquidity needs, the Fund may hold additional cash, sell
investments or temporarily borrow from banks and other
lenders. |
∎ |
Counterparty
Risk — The counterparty to an over‑the‑counter derivatives
contract or a borrower of the Fund’s securities may be unable or unwilling
to make timely principal, interest or settlement payments, or otherwise to
honor its obligations. Any such failure to honor its obligations may cause
significant losses to the Fund. |
∎ |
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. |
∎ |
Distressed
Securities Risk — Distressed securities are speculative and
involve substantial risks in addition to the risks of investing in junk
bonds. The Fund will generally not receive interest payments on the
distressed securities and may incur costs to protect its investment. In
addition, distressed securities involve the substantial risk that
principal will not be repaid. These securities may present a substantial
risk of default or may be in default at the time of investment. The Fund
may incur additional expenses to the extent it is required to seek
recovery upon a default in the payment of principal of or interest on its
portfolio holdings. In any reorganization or liquidation proceeding
relating to a portfolio company, the Fund may lose its entire investment
or may be required to accept cash or securities with a value less than its
original investment. Distressed securities and any securities received in
an exchange for such securities may be subject to restrictions on
resale. |
∎ |
Dollar Rolls
Risk — Dollar rolls involve the risk that the market value
of the securities that the Fund is committed to buy may decline below the
price of the securities the Fund has sold. These transactions may involve
leverage. |
∎ |
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 — A natural disaster could occur in a geographic region
in which the Fund invests, which could adversely affect the economy or the
business operations of companies in the specific geographic region,
causing an adverse impact on the Fund’s investments in, or which are
exposed to, the affected region. |
∎ |
High Portfolio
Turnover Risk — The Fund may engage in active and frequent
trading of its portfolio securities. High portfolio turnover (more than
100%) may result in increased transaction costs to the Fund, including
brokerage commissions, dealer mark‑ups and other transaction costs on the
sale of the securities and on reinvestment in other securities. The sale
of Fund portfolio securities may result in the realization and/or
distribution to shareholders of higher capital gains or losses as compared
to a fund with less active trading policies. These effects of higher than
normal portfolio turnover may adversely affect Fund
performance. |
∎ |
High Yield
Bonds Risk — Although junk bonds generally pay higher rates
of interest than investment grade bonds, junk bonds are high risk
investments that are considered speculative and may cause income and
principal losses for 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. |
∎ |
Indexed and
Inverse Securities Risk — Indexed and inverse securities
provide a potential return based on a particular index of value or
interest rates. The Fund’s return on these securities will be subject to
risk with respect to the value of the particular index. These securities
are subject to leverage risk and correlation risk. Certain indexed and
inverse securities have greater sensitivity to changes in interest rates
or index levels than other securities, and the Fund’s investment in such
instruments may decline significantly in value if interest rates or index
levels move in a way Fund management does not
anticipate. |
∎ |
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. |
∎ |
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. |
∎ |
Investment
Style Risk — Under certain market conditions, growth
investments have performed better during the later stages of economic
expansion and value investments have performed better during periods of
economic recovery. Therefore, these investment styles may over time go in
and out of favor. At times when an investment style used by the Fund or an
Underlying Fund is out of favor, the Fund may underperform other funds
that use different investment
styles. |
∎ |
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. |
∎ |
Management
Risk — If a passively managed ETF does not fully replicate
the underlying index, it is subject to the risk that the manager’s
investment management strategy may not produce the intended
results. |
∎ |
Mezzanine
Securities Risk — Mezzanine securities carry the risk that
the issuer will not be able to meet its obligations and that the equity
securities purchased with the mezzanine investments may lose
value. |
∎ |
Model Risk
— The Fund seeks to pursue its investment objective by using
proprietary models that incorporate quantitative analysis. Investments
selected using these models may perform differently than as forecasted due
to the factors incorporated into the models and the weighting of each
factor, changes from historical trends, and issues in the construction and
implementation of the models (including, but not limited to, software
issues and other technological issues). There is no guarantee that
BlackRock’s use of these models will result in effective investment
decisions for the
Fund. |
∎ |
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. |
∎ |
Municipal
Securities Risks — Municipal securities risks include the
ability of the issuer to repay the obligation, the relative lack of
information about certain issuers of municipal securities, and the
possibility of future legislative changes which could affect the market
for and value of municipal securities. Budgetary constraints of local,
state, and federal governments upon which the issuers may be relying for
funding may also impact municipal securities. These risks
include: |
∎ |
National Closed
Market Trading Risk — To the extent that the underlying
securities and/or other assets 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 and/or other assets 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. |
∎ |
“New Issues”
Risk — “New issues” are initial public offerings (“IPOs”) of
equity securities. Securities issued in IPOs have no trading history, and
information about the companies may be available for very limited periods.
In addition, the prices of securities sold in IPOs may be highly volatile
or may decline shortly after the
IPO. |
∎ |
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. |
∎ |
Pay-in-kind
Bonds Risk — Similar to zero coupon obligations, pay-in-kind
bonds also carry additional risk as holders of these types of securities
realize no cash until the cash payment date unless a portion of such
securities is sold and, if the issuer defaults, the Fund may obtain no
return at all on its investment. The market price of pay-in-kind bonds is
affected by interest rate changes to a greater extent, and therefore tends
to be more volatile, than that of securities which pay interest in
cash. |
∎ |
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. |
∎ |
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. |
∎ |
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. 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. |
∎ |
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.
An 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 and Purchase and Sale Contracts Risk — If the
other party to a repurchase agreement or purchase and sale contract
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 in either
situation and the market value of the security declines, the Fund may lose
money. |
∎ |
Reverse
Repurchase Agreements Risk — Reverse repurchase agreements
involve the sale of securities held by the Fund with an agreement to
repurchase the securities at an agreed-upon price, date and interest
payment. Reverse repurchase agreements involve the risk that the other
party may fail to return the securities in a timely manner or at all. The
Fund could lose money if it is unable to recover the securities and the
value of the collateral held by the Fund, including the value of the
investments made with cash collateral, is less than the value of the
securities. These events could also trigger adverse tax consequences for
the Fund. In addition, reverse repurchase agreements involve the risk that
the interest income earned in the investment of the proceeds will be less
than the interest expense. |
∎ |
Risks of Loan
Assignments and Participations — As the purchaser of an
assignment, the Fund typically succeeds to all the rights and obligations
of the assigning institution and becomes a lender under the credit
agreement with respect to the debt obligation; however, the Fund may not
be able unilaterally to enforce all rights and remedies under the loan and
with regard to any associated collateral. Because assignments may be
arranged through private negotiations between potential assignees and
potential assignors, the rights and obligations acquired by the Fund as
the purchaser of an assignment may differ from, and be more limited than,
those held by the assigning lender. In addition, if the loan is
foreclosed, the Fund could become part owner of any collateral and could
bear the costs and liabilities of owning and disposing of the collateral.
The Fund may be required to pass along to a purchaser that buys a loan
from the Fund by way of assignment a portion of any fees to which the Fund
is entitled under the loan. In connection with purchasing participations,
the Fund generally will have no right to enforce compliance by the
borrower with the terms of the loan agreement relating to the loan, nor
any rights of set‑off against the borrower, and the Fund may not directly
benefit from any collateral supporting the loan in which it has purchased
the participation. As a result, the Fund will be subject to the credit
risk of both the borrower and the lender that is selling the
participation. In the event of the insolvency of the lender selling a
participation, the Fund may be treated as a general creditor of the lender
and may not benefit from any set‑off between the lender and the
borrower. |
∎ |
Second Lien
Loans Risk — Second lien loans generally are subject to
similar risks as those associated with investments in senior loans.
Because second lien loans are subordinated or unsecured and thus lower in
priority of payment to senior loans, they are subject to the additional
risk that the cash flow of the borrower and property securing the loan or
debt, if any, may be insufficient to meet scheduled payments after giving
effect to the senior secured obligations of the
borrower. |
∎ |
Senior Loans
Risk — There is less readily available, reliable information
about most senior loans than is the case for many other types of
securities. An economic downturn generally leads to a higher non‑payment
rate, and a senior loan may lose significant value before a default
occurs. Moreover, any specific collateral used to secure a senior loan may
decline in value or become illiquid, which would adversely affect the
senior loan’s value. No active trading market may exist for certain senior
loans, which may impair the ability of the Fund to realize full value in
the event of the need to sell a senior loan and which may make it
difficult to value senior loans. Although senior loans in which the Fund
will invest generally will be secured by specific collateral, there can be
no assurance that liquidation of such collateral would satisfy the
borrower’s obligation in the event of non‑payment of scheduled interest or
principal or that such collateral could be readily liquidated. To the
extent that a senior loan is collateralized by stock in the borrower or
its subsidiaries, such stock may lose all of its value in the event of the
bankruptcy of the borrower. Uncollateralized senior loans involve a
greater risk of loss. |
∎ |
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 (“NAV”). 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. |
∎ |
Short Sales
Risk — Because making short sales in securities that it does
not own exposes the Fund to the risks associated with those securities,
such short sales involve speculative exposure risk. The Fund will incur a
loss as a result of a short sale if the price of the security increases
between the date of the short sale and the date on which the Fund replaces
the security sold short. |
∎ |
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. |
∎ |
Small Cap and
Emerging Growth Securities Risk — Small cap or emerging
growth companies may have limited product lines or markets. They may be
less financially secure than larger, more established companies. They may
depend on a more limited management group than larger capitalized
companies. |
∎ |
Sovereign Debt
Risk — Sovereign debt instruments are subject to the risk
that a governmental entity may delay or refuse to pay interest or repay
principal on its sovereign debt, due, for example, to cash flow problems,
insufficient foreign currency reserves, political considerations, the
relative size of the governmental entity’s debt position in relation to
the economy or the failure to put in place economic reforms required by
the International Monetary Fund or other multilateral
agencies. |
∎ |
Structured
Notes Risk — Structured notes and other related instruments
purchased by the Fund are generally privately negotiated debt obligations
where the principal and/or interest is determined by reference to the
performance of a specific asset, benchmark asset, market or interest rate
(“reference measure”). The purchase of structured notes exposes the Fund
to the credit risk of the issuer of the structured product. Structured
notes may be leveraged, increasing the volatility of each structured
note’s value relative to the change in the reference measure. Structured
notes may also be less liquid and more difficult to price accurately than
less complex securities and instruments or more traditional debt
securities. |
∎ |
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. |
∎ |
Supranational
Entities Risk — The Fund may invest in obligations issued or
guaranteed by the World Bank. The government members, or “stockholders,”
usually make initial capital contributions to the World Bank and in many
cases are committed to make additional capital contributions if the World
Bank is unable to repay its borrowings. There is no guarantee that one or
more stockholders of the World Bank will continue to make any necessary
additional capital contributions. If such contributions are not made, the
entity may be unable to pay interest or repay principal on its debt
securities, and the Fund may lose money on such
investments. |
∎ |
Tender Option
Bonds and Related Securities Risk — The Fund’s participation
in tender option bond transactions may reduce the Fund’s returns and/or
increase volatility. Investments in tender option bond transactions expose
the Fund to counterparty risk and leverage risk. An investment in a tender
option bond transaction typically will involve greater risk than an
investment in a municipal fixed rate security, including the risk of loss
of principal. Distributions on residual inverse floating rate interest
tender option bonds (“TOB Residuals”) will bear an inverse relationship to
short-term municipal security interest rates. Distributions on TOB
Residuals paid to the Fund will be reduced or, in the extreme, eliminated
as short-term municipal interest rates rise and will increase when
short-term municipal interest rates fall. TOB Residuals generally will
underperform the market for fixed rate municipal securities in a rising
interest rate environment. The Fund may invest in beneficial interests in
a special purpose trust formed for the purpose of holding Municipal Bonds
contributed by one or more funds (a “TOB Trust”) on either a non‑recourse
or recourse basis. If the Fund invests in a TOB Trust on a recourse basis,
it could suffer losses in excess of the value of its TOB
Residuals. |
∎ |
Tracking Error
Risk — The Fund may be subject to 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 (including shares of the Underlying Funds) 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,
among other reasons. These risks may be heightened during times of
increased market volatility or other unusual market conditions. In
addition, tracking error may result because a fund incurs fees and
expenses, while the Underlying Index does
not. |
∎ |
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. |
∎ |
U.S. Government
Mortgage-Related Securities Risk — There are a number of
important differences among the agencies and instrumentalities of the U.S.
Government that issue mortgage-related securities and among the securities
that they issue. Mortgage-related securities guaranteed by the Government
National Mortgage Association (“GNMA” or “Ginnie Mae”) are guaranteed as
to the timely payment of principal and interest by GNMA and such guarantee
is backed by the full faith and credit of the United States. GNMA
securities also are supported by the right of GNMA to borrow funds from
the U.S. Treasury to make payments under its guarantee. Mortgage-related
securities issued by Fannie Mae or Freddie Mac are solely the obligations
of Fannie Mae or Freddie Mac, as the case may be, and are not backed by or
entitled to the full faith and credit of the United States but are
supported by the right of the issuer to borrow from the
Treasury. |
∎ |
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. |
∎ |
Warrants Risk
— If the price of the underlying stock does not rise above
the exercise price before the warrant expires, the warrant generally
expires without any value and the Fund will lose any amount it paid for
the warrant. Thus, investments in warrants may involve substantially more
risk than investments in common stock. Warrants may trade in the same
markets as their underlying stock; however, the price of the warrant does
not necessarily move with the price of the underlying
stock. |
∎ |
When-Issued and
Delayed Delivery Securities and Forward Commitments Risk —
When-issued and delayed delivery securities and forward commitments
involve the risk that the security the Fund buys will lose value prior to
its delivery. There also is the risk that the security will not be issued
or that the other party to the transaction will not meet its obligation.
If this occurs, the Fund may lose both the investment opportunity for the
assets it set aside to pay for the security and any gain in the security’s
price. |
∎ |
Zero Coupon
Securities Risk —
While interest payments are not made on such securities, holders of such
securities are deemed to have received income (“phantom income”) annually,
notwithstanding that cash may not be received currently. The effect of
owning instruments that do not make current interest payments is that a
fixed yield is earned not only on the original investment but also, in
effect, on all discount accretion during the life of the obligations. This
implicit reinvestment of earnings at a fixed rate eliminates the risk of
being unable to invest distributions at a rate as high as the implicit
yield on the zero coupon bond, but at the same time eliminates the
holder’s ability to reinvest at higher rates in the future. For this
reason, some of these securities may be subject to substantially greater
price fluctuations during periods of changing market interest rates than
are comparable securities that pay interest currently. Longer term zero
coupon bonds are more exposed to interest rate risk than shorter term zero
coupon bonds. These investments benefit the issuer by mitigating its need
for cash to meet debt service, but also require a higher rate of return to
attract investors who are willing to defer receipt of
cash. |
|
1 Year | 5 Years | 10 Years | |||||||||
LifePath
Dynamic 2040 Fund — Class K Shares |
||||||||||||
Return
Before Taxes |
% | % | % | |||||||||
Return
After Taxes on Distributions |
% | % | % | |||||||||
Return
After Taxes on Distributions and Sale of Fund Shares |
% | % | % | |||||||||
LifePath
Dynamic 2040 Fund Custom Benchmark
(Reflects
no deduction for fees, expenses or taxes) |
% | % | % | |||||||||
Russell
1000®
Index (Reflects no deduction for fees, expenses or taxes) |
% | % | % |
Portfolio
Manager |
Portfolio Manager of the Fund Since | Title | ||
Philip
Green |
2016 | Managing Director of BlackRock, Inc. | ||
Chris
Chung, CFA |
2020 | Managing Director of BlackRock, Inc. | ||
Michael
Pensky, CFA |
2024 | Managing Director of BlackRock, Inc. |
(expenses that you pay each year as a percentage of the value of your investment) |
Class K Shares | ||||
Management
Fee1 |
|||||
Distribution
and/or Service (12b-1) Fees |
|||||
Other
Expenses1,2,3,4 |
|||||
Administration
Fees1 |
|||||
Independent
Expenses2,3,4 |
|||||
Acquired
Fund Fees and Expenses1,3 |
|||||
Total
Annual Fund Operating Expenses3 |
|||||
Fee
Waivers and/or Expense Reimbursements1,4 |
( |
||||
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements1,4 |
1 | As
described in the “Management of the Funds” section of the Fund’s
prospectus beginning on page 199, BlackRock Advisors, LLC (“BAL”) and BFA
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 of the Fund, through |
2 |
3 |
4 | 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 | |||||||||||||
Class
K Shares |
$ | $ | $ | $ |
Years Until Retirement | Equity Funds (includes REITs)1 |
Fixed‑Income Funds1 | ||||||||
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 | % | ||||||
1 BFA may adjust the
allocation to equity and fixed-income in the Fund, based on an assessment
of the current market conditions and the potential contribution of each
asset class to the expected risk and return characteristics of the Fund.
In general, the adjustments will be limited to +/- 10% relative to the
target allocations. At notional value after such adjustments, the Fund’s
equity allocation could exceed 100%. |
|
∎ |
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. |
∎ |
Allocation
Risk — The Fund’s ability to achieve its investment
objective depends upon BFA’S skill in determining the Fund’s strategic
asset class allocation and in selecting the best mix of Underlying Funds
and direct investments. There is a risk that BFA’s evaluations and
assumptions regarding asset classes or 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. |
∎ |
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. |
∎ |
Investments in
Underlying Funds Risk — The Fund’s investments are
concentrated 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 equity and bond markets
and 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. |
∎ |
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. |
∎ |
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. |
∎ |
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: |
∎ |
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,
and the rules thereunder. Increases and decreases in the value of the
Fund’s portfolio will be magnified when the Fund uses
leverage. |
∎ |
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. |
∎ |
Commodities
Related Investments Risk — Exposure to the commodities
markets may subject the Fund to greater volatility than investments in
traditional securities. The value of commodity-linked derivative
investments may be affected by changes in overall market movements,
commodity index volatility, changes in inflation, interest rates, or
factors affecting a particular industry or commodity, such as drought,
floods, weather, embargoes, tariffs and international economic, political
and regulatory developments. |
∎ |
Concentration
Risk — To the extent that the Fund or 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, the Fund or 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. |
∎ |
Convertible
Securities Risk — The market value of a convertible security
performs like that of a regular debt security; that is, if market interest
rates rise, the value of a convertible security usually falls. In
addition, convertible securities are subject to the risk that the issuer
will not be able to pay interest, principal or dividends when due, and
their market |
value
may change based on changes in the issuer’s credit rating or the market’s
perception of the issuer’s creditworthiness. Since it derives a portion of
its value from the common stock into which it may be converted, a
convertible security is also subject to the same types of market and
issuer risks that apply to the underlying common stock, including the
potential for increased volatility in the price of the convertible
security. |
∎ |
Corporate Loan
Risk — Commercial banks and other financial institutions or
institutional investors make corporate loans to companies that need
capital to grow or restructure. Borrowers generally pay interest on
corporate loans at rates that change in response to changes in market
interest rates such as the Secured Overnight Financing Rate (“SOFR”), the
London Interbank Offered Rate (“LIBOR”) or the prime rates of U.S. banks.
As a result, the value of corporate loan investments is generally less
exposed to the adverse effects of shifts in market interest rates than
investments that pay a fixed rate of interest. The market for corporate
loans may be subject to irregular trading activity and wide bid/ask
spreads. In addition, transactions in corporate loans may settle on a
delayed basis. As a result, the proceeds from the sale of corporate loans
may not be readily available to make additional investments or to meet the
Fund’s redemption obligations. To the extent the extended settlement
process gives rise to short-term liquidity needs, the Fund may hold
additional cash, sell investments or temporarily borrow from banks and
other lenders. |
∎ |
Counterparty
Risk — The counterparty to an over‑the‑counter derivatives
contract or a borrower of the Fund’s securities may be unable or unwilling
to make timely principal, interest or settlement payments, or otherwise to
honor its obligations. Any such failure to honor its obligations may cause
significant losses to the Fund. |
∎ |
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. |
∎ |
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 — A natural disaster could occur in a geographic region
in which the Fund invests, which could adversely affect the economy or the
business operations of companies in the specific geographic region,
causing an adverse impact on the Fund’s investments in, or which are
exposed to, the affected region. |
∎ |
High Portfolio
Turnover Risk — The Fund may engage in active and frequent
trading of its portfolio securities. High portfolio turnover (more than
100%) may result in increased transaction costs to the Fund, including
brokerage commissions, dealer mark‑ups and other transaction costs on the
sale of the securities and on reinvestment in other securities. The sale
of Fund portfolio securities may result in the realization and/or
distribution to shareholders of higher capital gains or losses as compared
to a fund with less active trading policies. These effects of higher than
normal portfolio turnover may adversely affect Fund
performance. |
∎ |
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. |
∎ |
Indexed and
Inverse Securities Risk — Indexed and inverse securities
provide a potential return based on a particular index of value or
interest rates. The Fund’s return on these securities will be subject to
risk with respect to the value of the particular index. These securities
are subject to leverage risk and correlation risk. Certain indexed and
inverse securities have greater sensitivity to changes in interest rates
or index levels than other securities, and the Fund’s investment in such
instruments may decline significantly in value if interest rates or index
levels move in a way Fund management does not
anticipate. |
∎ |
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. |
∎ |
Investment
Style Risk — Under certain market conditions, growth
investments have performed better during the later stages of economic
expansion and value investments have performed better during periods of
economic recovery. Therefore, these investment styles may over time go in
and out of favor. At times when an investment style used by the Fund or an
Underlying Fund is out of favor, the Fund may underperform other funds
that use different investment
styles. |
∎ |
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. |
∎ |
Management
Risk — If a passively managed ETF does not fully replicate
the underlying index, it is subject to the risk that the manager’s
investment management strategy may not produce the intended
results. |
∎ |
Mezzanine
Securities Risk — Mezzanine securities carry the risk that
the issuer will not be able to meet its obligations and that the equity
securities purchased with the mezzanine investments may lose
value. |
∎ |
Model Risk
— The Fund seeks to pursue its investment objective by using
proprietary models that incorporate quantitative analysis. Investments
selected using these models may perform differently than as forecasted due
to the factors incorporated into the models and the weighting of each
factor, changes from historical trends, and issues in the construction and
implementation of the models (including, but not limited to, software
issues and other technological issues). There is no guarantee that
BlackRock’s use of these models will result in effective investment
decisions for the
Fund. |
∎ |
National Closed
Market Trading Risk — To the extent that the underlying
securities and/or other assets 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 and/or other assets 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. |
∎ |
“New Issues”
Risk — “New issues” are initial public offerings (“IPOs”) of
equity securities. Securities issued in IPOs have no trading history, and
information about the companies may be available for very limited periods.
In addition, the prices of securities sold in IPOs may be highly volatile
or may decline shortly after the
IPO. |
∎ |
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. |
∎ |
Pay-in-kind
Bonds Risk — Similar to zero coupon obligations, pay-in-kind
bonds also carry additional risk as holders of these types of securities
realize no cash until the cash payment date unless a portion of such
securities is sold and, if the issuer defaults, the Fund may obtain no
return at all on its investment. The market price of pay-in-kind bonds is
affected by interest rate changes to a greater extent, and therefore tends
to be more volatile, than that of securities which pay interest in
cash. |
∎ |
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. |
∎ |
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. |
∎ |
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. 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. |
∎ |
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.
An 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. |
∎ |
Reverse
Repurchase Agreements Risk — Reverse repurchase agreements
involve the sale of securities held by the Fund with an agreement to
repurchase the securities at an agreed-upon price, date and interest
payment. Reverse repurchase agreements involve the risk that the other
party may fail to return the securities in a timely manner or at all. The
Fund could lose money if it is unable to recover the securities and the
value of the collateral held by the Fund, including the value of the
investments made with cash collateral, is less than the value of the
securities. These events could also trigger adverse tax consequences for
the Fund. In addition, reverse repurchase agreements involve the risk that
the interest income earned in the investment of the proceeds will be less
than the interest expense. |
∎ |
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 (“NAV”). 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. |
∎ |
Short Sales
Risk — Because making short sales in securities that it does
not own exposes the Fund to the risks associated with those securities,
such short sales involve speculative exposure risk. The Fund will incur a
loss as a result of a short sale if the price of the security increases
between the date of the short sale and the date on which the Fund replaces
the security sold short. |
∎ |
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. |
∎ |
Small Cap and
Emerging Growth Securities Risk — Small cap or emerging
growth companies may have limited product lines or markets. They may be
less financially secure than larger, more established companies. They may
depend on a more limited management group than larger capitalized
companies. |
∎ |
Structured
Notes Risk — Structured notes and other related instruments
purchased by the Fund are generally privately negotiated debt obligations
where the principal and/or interest is determined by reference to the
performance of a specific asset, benchmark asset, market or interest rate
(“reference measure”). The purchase of structured notes exposes the Fund
to the credit risk of the issuer of the structured product. Structured
notes may be leveraged, increasing the volatility of each structured
note’s value relative to the change in the reference measure. Structured
notes may also be less liquid and more difficult to price accurately than
less complex securities and instruments or more traditional debt
securities. |
∎ |
Tracking Error
Risk — The Fund may be subject to 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 (including shares of the Underlying Funds) 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,
among other reasons. These risks may be heightened during times of
increased market volatility or other unusual market conditions. In
addition, tracking error may result because a fund incurs fees and
expenses, while the Underlying Index does
not. |
∎ |
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. |
∎ |
Warrants Risk
— If the price of the underlying stock does not rise above
the exercise price before the warrant expires, the warrant generally
expires without any value and the Fund will lose any amount it paid for
the warrant. Thus, investments in warrants may involve substantially more
risk than investments in common stock. Warrants may trade in the same
markets as their underlying stock; however, the price of the warrant does
not necessarily move with the price of the underlying
stock. |
∎ |
When-Issued and
Delayed Delivery Securities and Forward Commitments Risk —
When-issued and delayed delivery securities and forward commitments
involve the risk that the security the Fund buys will lose value prior to
its delivery. There also is the risk that the security will not be issued
or that the other party to the transaction will not meet its obligation.
If this occurs, the Fund may lose both the investment opportunity for the
assets it set aside to pay for the security and any gain in the security’s
price. |
|
1 Year | 5 Years | 10 Years | |||||||||
LifePath
Dynamic 2045 Fund — Class K Shares |
||||||||||||
Return
Before Taxes |
% | % | % | |||||||||
Return
After Taxes on Distributions |
% | % | % | |||||||||
Return
After Taxes on Distributions and Sale of Fund Shares |
% | % | % | |||||||||
LifePath
Dynamic 2045 Fund Custom Benchmark
(Reflects
no deduction for fees, expenses or taxes) |
% | % | % | |||||||||
Russell
1000®
Index (Reflects no deduction for fees, expenses or taxes) |
% | % | % |
Portfolio
Manager |
Portfolio Manager of the Fund Since | Title | ||
Philip
Green |
2016 | Managing Director of BlackRock, Inc. | ||
Chris
Chung, CFA |
2020 | Managing Director of BlackRock, Inc. | ||
Michael
Pensky, CFA |
2024 | Managing Director of BlackRock, Inc. |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
Class K Shares | ||||
Management
Fee1 |
|||||
Distribution
and/or Service (12b-1) Fees |
|||||
Other
Expenses1,2,3,4 |
|||||
Administration
Fees1 |
|||||
Independent
Expenses2,3,4 |
|||||
Acquired
Fund Fees and Expenses1,3 |
|||||
Total
Annual Fund Operating Expenses3 |
|||||
Fee
Waivers and/or Expense Reimbursements1,4 |
( |
||||
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements1,4 |
1 | As
described in the “Management of the Funds” section of the Fund’s
prospectus beginning on page 199, BlackRock Advisors, LLC (“BAL”) and BFA
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 of the Fund, through |
2 |
3 |
4 | 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 | |||||||||||||
Class
K Shares |
$ | $ | $ | $ |
Years Until Retirement | Equity Funds (includes REITs)1 |
Fixed‑Income Funds1 | ||||||||
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 | % | ||||||
1 BFA may adjust the
allocation to equity and fixed-income in the Fund, based on an assessment
of the current market conditions and the potential contribution of each
asset class to the expected risk and return characteristics of the Fund.
In general, the adjustments will be limited to +/- 10% relative to the
target allocations. At notional value after such adjustments, the Fund’s
equity allocation could exceed 100%. |
|
∎ |
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. |
∎ |
Allocation
Risk — The Fund’s ability to achieve its investment
objective depends upon BFA’S skill in determining the Fund’s strategic
asset class allocation and in selecting the best mix of Underlying Funds
and direct investments. There is a risk that BFA’s evaluations and
assumptions regarding asset classes or 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. |
∎ |
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. |
∎ |
Investments in
Underlying Funds Risk — The Fund’s investments are
concentrated 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 equity and bond markets
and 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. |
∎ |
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. |
∎ |
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. |
∎ |
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: |
∎ |
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,
and the rules thereunder. Increases and decreases in the value of the
Fund’s portfolio will be magnified when the Fund uses
leverage. |
∎ |
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. |
∎ |
Commodities
Related Investments Risk — Exposure to the commodities
markets may subject the Fund to greater volatility than investments in
traditional securities. The value of commodity-linked derivative
investments may be affected by changes in overall market movements,
commodity index volatility, changes in inflation, interest rates, or
factors affecting a particular industry or commodity, such as drought,
floods, weather, embargoes, tariffs and international economic, political
and regulatory developments. |
∎ |
Concentration
Risk — To the extent that the Fund or 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, the Fund or 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. |
∎ |
Convertible
Securities Risk — The market value of a convertible security
performs like that of a regular debt security; that is, if market interest
rates rise, the value of a convertible security usually falls. In
addition, convertible |
securities
are subject to the risk that the issuer will not be able to pay interest,
principal or dividends when due, and their market value may change based
on changes in the issuer’s credit rating or the market’s perception of the
issuer’s creditworthiness. Since it derives a portion of its value from
the common stock into which it may be converted, a convertible security is
also subject to the same types of market and issuer risks that apply to
the underlying common stock, including the potential for increased
volatility in the price of the convertible
security. |
∎ |
Corporate Loan
Risk — Commercial banks and other financial institutions or
institutional investors make corporate loans to companies that need
capital to grow or restructure. Borrowers generally pay interest on
corporate loans at rates that change in response to changes in market
interest rates such as the Secured Overnight Financing Rate (“SOFR”), the
London Interbank Offered Rate (“LIBOR”) or the prime rates of U.S. banks.
As a result, the value of corporate loan investments is generally less
exposed to the adverse effects of shifts in market interest rates than
investments that pay a fixed rate of interest. The market for corporate
loans may be subject to irregular trading activity and wide bid/ask
spreads. In addition, transactions in corporate loans may settle on a
delayed basis. As a result, the proceeds from the sale of corporate loans
may not be readily available to make additional investments or to meet the
Fund’s redemption obligations. To the extent the extended settlement
process gives rise to short-term liquidity needs, the Fund may hold
additional cash, sell investments or temporarily borrow from banks and
other lenders. |
∎ |
Counterparty
Risk — The counterparty to an over‑the‑counter derivatives
contract or a borrower of the Fund’s securities may be unable or unwilling
to make timely principal, interest or settlement payments, or otherwise to
honor its obligations. Any such failure to honor its obligations may cause
significant losses to the Fund. |
∎ |
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. |
∎ |
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 — A natural disaster could occur in a geographic region
in which the Fund invests, which could adversely affect the economy or the
business operations of companies in the specific geographic region,
causing an adverse impact on the Fund’s investments in, or which are
exposed to, the affected region. |
∎ |
High Portfolio
Turnover Risk — The Fund may engage in active and frequent
trading of its portfolio securities. High portfolio turnover (more than
100%) may result in increased transaction costs to the Fund, including
brokerage commissions, dealer mark‑ups and other transaction costs on the
sale of the securities and on reinvestment in other securities. The sale
of Fund portfolio securities may result in the realization and/or
distribution to shareholders of higher capital gains or losses as compared
to a fund with less active trading policies. These effects of higher than
normal portfolio turnover may adversely affect Fund
performance. |
∎ |
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. |
∎ |
Indexed and
Inverse Securities Risk — Indexed and inverse securities
provide a potential return based on a particular index of value or
interest rates. The Fund’s return on these securities will be subject to
risk with respect to the value of the particular index. These securities
are subject to leverage risk and correlation risk. Certain indexed and
inverse securities have greater sensitivity to changes in interest rates
or index levels than other securities, and the Fund’s investment in such
instruments may decline significantly in value if interest rates or index
levels move in a way Fund management does not
anticipate. |
∎ |
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. |
∎ |
Investment
Style Risk — Under certain market conditions, growth
investments have performed better during the later stages of economic
expansion and value investments have performed better during periods of
economic recovery. Therefore, these investment styles may over time go in
and out of favor. At times when an investment style used by the Fund or an
Underlying Fund is out of favor, the Fund may underperform other funds
that use different investment
styles. |
∎ |
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. |
∎ |
Management
Risk — If a passively managed ETF does not fully replicate
the underlying index, it is subject to the risk that the manager’s
investment management strategy may not produce the intended
results. |
∎ |
Mezzanine
Securities Risk — Mezzanine securities carry the risk that
the issuer will not be able to meet its obligations and that the equity
securities purchased with the mezzanine investments may lose
value. |
∎ |
Model Risk
— The Fund seeks to pursue its investment objective by using
proprietary models that incorporate quantitative analysis. Investments
selected using these models may perform differently than as forecasted due
to the factors incorporated into the models and the weighting of each
factor, changes from historical trends, and issues in the construction and
implementation of the models (including, but not limited to, software
issues and other technological issues). There is no guarantee that
BlackRock’s use of these models will result in effective investment
decisions for the
Fund. |
∎ |
National Closed
Market Trading Risk — To the extent that the underlying
securities and/or other assets 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 and/or other assets 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. |
∎ |
“New Issues”
Risk — “New issues” are initial public offerings (“IPOs”) of
equity securities. Securities issued in IPOs have no trading history, and
information about the companies may be available for very limited periods.
In addition, the prices of securities sold in IPOs may be highly volatile
or may decline shortly after the
IPO. |
∎ |
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. |
∎ |
Pay-in-kind
Bonds Risk — Similar to zero coupon obligations, pay-in-kind
bonds also carry additional risk as holders of these types of securities
realize no cash until the cash payment date unless a portion of such
securities is sold and, if the issuer defaults, the Fund may obtain no
return at all on its investment. The market price of pay-in-kind bonds is
affected by interest rate changes to a greater extent, and therefore tends
to be more volatile, than that of securities which pay interest in
cash. |
∎ |
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. |
∎ |
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. |
∎ |
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. 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. |
∎ |
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.
An 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. |
∎ |
Reverse
Repurchase Agreements Risk — Reverse repurchase agreements
involve the sale of securities held by the Fund with an agreement to
repurchase the securities at an agreed-upon price, date and interest
payment. Reverse repurchase agreements involve the risk that the other
party may fail to return the securities in a timely manner or at all. The
Fund could lose money if it is unable to recover the securities and the
value of the collateral held by the Fund, including the value of the
investments made with cash collateral, is less than the value of the
securities. These events could also trigger adverse tax consequences for
the Fund. In addition, reverse repurchase agreements involve the risk that
the interest income earned in the investment of the proceeds will be less
than the interest expense. |
∎ |
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 (“NAV”). 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. |
∎ |
Short Sales
Risk — Because making short sales in securities that it does
not own exposes the Fund to the risks associated with those securities,
such short sales involve speculative exposure risk. The Fund will incur a
loss as a result of a short sale if the price of the security increases
between the date of the short sale and the date on which the Fund replaces
the security sold short. |
∎ |
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. |
∎ |
Small Cap and
Emerging Growth Securities Risk — Small cap or emerging
growth companies may have limited product lines or markets. They may be
less financially secure than larger, more established companies. They may
depend on a more limited management group than larger capitalized
companies. |
∎ |
Structured
Notes Risk — Structured notes and other related instruments
purchased by the Fund are generally privately negotiated debt obligations
where the principal and/or interest is determined by reference to the
performance of a specific asset, benchmark asset, market or interest rate
(“reference measure”). The purchase of structured notes exposes the Fund
to the credit risk of the issuer of the structured product. Structured
notes may be leveraged, increasing the volatility of each structured
note’s value relative to the change in the reference measure. Structured
notes may also be less liquid and more difficult to price accurately than
less complex securities and instruments or more traditional debt
securities. |
∎ |
Tracking Error
Risk — The Fund may be subject to 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 (including shares of the Underlying Funds) 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,
among other reasons. These risks may be heightened during times of
increased market volatility or other unusual market conditions. In
addition, tracking error may result because a fund incurs fees and
expenses, while the Underlying Index does
not. |
∎ |
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. |
∎ |
Warrants Risk
— If the price of the underlying stock does not rise above
the exercise price before the warrant expires, the warrant generally
expires without any value and the Fund will lose any amount it paid for
the warrant. Thus, investments in warrants may involve substantially more
risk than investments in common stock. Warrants may trade in the same
markets as their underlying stock; however, the price of the warrant does
not necessarily move with the price of the underlying
stock. |
∎ |
When-Issued and
Delayed Delivery Securities and Forward Commitments Risk —
When-issued and delayed delivery securities and forward commitments
involve the risk that the security the Fund buys will lose value prior to
its delivery. There also is the risk that the security will not be issued
or that the other party to the transaction will not meet its obligation.
If this occurs, the Fund may lose both the investment opportunity for the
assets it set aside to pay for the security and any gain in the security’s
price. |
|
1 Year | 5 Years | 10 Years | |||||||||
LifePath
Dynamic 2050 Fund — Class K Shares |
||||||||||||
Return
Before Taxes |
% | % | % | |||||||||
Return
After Taxes on Distributions |
% | % | % | |||||||||
Return
After Taxes on Distributions and Sale of Fund Shares |
% | % | % | |||||||||
LifePath
Dynamic 2050 Fund Custom Benchmark
(Reflects
no deduction for fees, expenses or taxes) |
% | % | % | |||||||||
Russell
1000® Index
(Reflects
no deduction for fees, expenses or taxes) |
% | % | % |
Portfolio
Manager |
Portfolio Manager of the Fund Since | Title | ||
Philip
Green |
2016 | Managing Director of BlackRock, Inc. | ||
Chris
Chung, CFA |
2020 | Managing Director of BlackRock, Inc. | ||
Michael
Pensky, CFA |
2024 | Managing Director of BlackRock, Inc. |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
Class K Shares | ||||
Management
Fee1 |
|||||
Distribution
and/or Service (12b-1) Fees |
|||||
Other
Expenses1,2,3,4 |
|||||
Administration
Fees1 |
|||||
Independent
Expenses2,3,4 |
|||||
Acquired
Fund Fees and Expenses1,3 |
|||||
Total
Annual Fund Operating Expenses3 |
|||||
Fee
Waivers and/or Expense Reimbursements1,4 |
( |
||||
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements1,4 |
1 | As
described in the “Management of the Funds” section of the Fund’s
prospectus beginning on page 199, BlackRock Advisors, LLC (“BAL”) and BFA
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 of the Fund, through |
2 |
3 |
4 | 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 | |||||||||||||
Class
K Shares |
$ | $ | $ | $ |
Years Until Retirement | Equity Funds (includes REITs)1 |
Fixed‑Income Funds1 | ||||||||
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 | % | ||||||
1 BFA may adjust the
allocation to equity and fixed-income in the Fund, based on an assessment
of the current market conditions and the potential contribution of each
asset class to the expected risk and return characteristics of the Fund.
In general, the adjustments will be limited to +/- 10% relative to the
target allocations. At notional value after such adjustments, the Fund’s
equity allocation could exceed 100%. |
|
∎ |
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. |
∎ |
Allocation
Risk — The Fund’s ability to achieve its investment
objective depends upon BFA’S skill in determining the Fund’s strategic
asset class allocation and in selecting the best mix of Underlying Funds
and direct investments. There is a risk that BFA’s evaluations and
assumptions regarding asset classes or 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. |
∎ |
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. |
∎ |
Investments in
Underlying Funds Risk — The Fund’s investments are
concentrated 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 equity and bond markets
and 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. |
∎ |
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. |
∎ |
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. |
∎ |
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: |
∎ |
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,
and the rules thereunder. Increases and decreases in the value of the
Fund’s portfolio will be magnified when the Fund uses
leverage. |
∎ |
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. |
∎ |
Commodities
Related Investments Risk — Exposure to the commodities
markets may subject the Fund to greater volatility than investments in
traditional securities. The value of commodity-linked derivative
investments may be affected by changes in overall market movements,
commodity index volatility, changes in inflation, interest rates, or
factors affecting a particular industry or commodity, such as drought,
floods, weather, embargoes, tariffs and international economic, political
and regulatory developments. |
∎ |
Concentration
Risk — To the extent that the Fund or 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, the Fund or 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. |
∎ |
Convertible
Securities Risk — The market value of a convertible security
performs like that of a regular debt security; that is, if market interest
rates rise, the value of a convertible security usually falls. In
addition, convertible securities are subject to the risk that the issuer
will not be able to pay interest, principal or dividends when due, and
their market value may change based on changes in the issuer’s credit
rating or the market’s perception of the issuer’s creditworthiness. Since
it derives a portion of its value from the common stock into which it may
be converted, a convertible security is also subject to the same types of
market and issuer risks that apply to the underlying common stock,
including the potential for increased volatility in the price of the
convertible security. |
∎ |
Corporate Loan
Risk — Commercial banks and other financial institutions or
institutional investors make corporate loans to companies that need
capital to grow or restructure. Borrowers generally pay interest on
corporate loans at rates that change in response to changes in market
interest rates such as the Secured Overnight Financing Rate (“SOFR”), the
London Interbank Offered Rate (“LIBOR”) or the prime rates of U.S. banks.
As a result, the value of corporate loan investments is generally less
exposed to the adverse effects of shifts in market interest rates than
investments that pay a fixed rate of interest. The market for corporate
loans may be subject to irregular trading activity and wide bid/ask
spreads. In addition, transactions in corporate loans may settle on a
delayed basis. As a result, the proceeds from the sale of corporate loans
may not be readily available to make additional investments or to meet the
Fund’s redemption obligations. To the extent the extended settlement
process gives rise to short-term liquidity needs, the Fund may hold
additional cash, sell investments or temporarily borrow from banks and
other lenders. |
∎ |
Counterparty
Risk — The counterparty to an over‑the‑counter derivatives
contract or a borrower of the Fund’s securities may be unable or unwilling
to make timely principal, interest or settlement payments, or otherwise to
honor its obligations. Any such failure to honor its obligations may cause
significant losses to the Fund. |
∎ |
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. |
∎ |
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 — A natural disaster could occur in a geographic region
in which the Fund invests, which could adversely affect the economy or the
business operations of companies in the specific geographic region,
causing an adverse impact on the Fund’s investments in, or which are
exposed to, the affected region. |
∎ |
High Portfolio
Turnover Risk — The Fund may engage in active and frequent
trading of its portfolio securities. High portfolio turnover (more than
100%) may result in increased transaction costs to the Fund, including
brokerage commissions, dealer mark‑ups and other transaction costs on the
sale of the securities and on reinvestment in other securities. The sale
of Fund portfolio securities may result in the realization and/or
distribution to shareholders of higher capital gains or losses as compared
to a fund with less active trading policies. These effects of higher than
normal portfolio turnover may adversely affect Fund
performance. |
∎ |
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. |
∎ |
Indexed and
Inverse Securities Risk — Indexed and inverse securities
provide a potential return based on a particular index of value or
interest rates. The Fund’s return on these securities will be subject to
risk with respect to the value of the particular index. These securities
are subject to leverage risk and correlation risk. Certain indexed and
inverse securities have greater sensitivity to changes in interest rates
or index levels than other securities, and the Fund’s investment in such
instruments may decline significantly in value if interest rates or index
levels move in a way Fund management does not
anticipate. |
∎ |
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. |
∎ |
Investment
Style Risk — Under certain market conditions, growth
investments have performed better during the later stages of economic
expansion and value investments have performed better during periods of
economic recovery. Therefore, these investment styles may over time go in
and out of favor. At times when an investment style used by the Fund or an
Underlying Fund is out of favor, the Fund may underperform other funds
that use different investment
styles. |
∎ |
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. |
∎ |
Management
Risk — If a passively managed ETF does not fully replicate
the underlying index, it is subject to the risk that the manager’s
investment management strategy may not produce the intended
results. |
∎ |
Mezzanine
Securities Risk — Mezzanine securities carry the risk that
the issuer will not be able to meet its obligations and that the equity
securities purchased with the mezzanine investments may lose
value. |
∎ |
Model Risk
— The Fund seeks to pursue its investment objective by using
proprietary models that incorporate quantitative analysis. Investments
selected using these models may perform differently than as forecasted due
to the factors incorporated into the models and the weighting of each
factor, changes from historical trends, and issues in the construction and
implementation of the models (including, but not limited to, software
issues and other technological issues). There is no guarantee that
BlackRock’s use of these models will result in effective investment
decisions for the Fund. |
∎ |
National Closed
Market Trading Risk — To the extent that the underlying
securities and/or other assets 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 and/or other assets 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. |
∎ |
“New Issues”
Risk — “New issues” are initial public offerings (“IPOs”) of
equity securities. Securities issued in IPOs have no trading history, and
information about the companies may be available for very limited periods.
In addition, the prices of securities sold in IPOs may be highly volatile
or may decline shortly after the
IPO. |
∎ |
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. |
∎ |
Pay-in-kind
Bonds Risk — Similar to zero coupon obligations, pay-in-kind
bonds also carry additional risk as holders of these types of securities
realize no cash until the cash payment date unless a portion of such
securities is sold and, if the issuer defaults, the Fund may obtain no
return at all on its investment. The market price of pay-in-kind bonds is
affected by interest rate changes to a greater extent, and therefore tends
to be more volatile, than that of securities which pay interest in
cash. |
∎ |
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. |
∎ |
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. |
∎ |
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. 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. |
∎ |
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.
An 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. |
∎ |
Reverse
Repurchase Agreements Risk — Reverse repurchase agreements
involve the sale of securities held by the Fund with an agreement to
repurchase the securities at an agreed-upon price, date and interest
payment. Reverse |
repurchase
agreements involve the risk that the other party may fail to return the
securities in a timely manner or at all. The Fund could lose money if it
is unable to recover the securities and the value of the collateral held
by the Fund, including the value of the investments made with cash
collateral, is less than the value of the securities. These events could
also trigger adverse tax consequences for the Fund. In addition, reverse
repurchase agreements involve the risk that the interest income earned in
the investment of the proceeds will be less than the interest
expense. |
∎ |
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 (“NAV”). 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. |
∎ |
Short Sales
Risk — Because making short sales in securities that it does
not own exposes the Fund to the risks associated with those securities,
such short sales involve speculative exposure risk. The Fund will incur a
loss as a result of a short sale if the price of the security increases
between the date of the short sale and the date on which the Fund replaces
the security sold short. |
∎ |
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. |
∎ |
Small Cap and
Emerging Growth Securities Risk — Small cap or emerging
growth companies may have limited product lines or markets. They may be
less financially secure than larger, more established companies. They may
depend on a more limited management group than larger capitalized
companies. |
∎ |
Structured
Notes Risk — Structured notes and other related instruments
purchased by the Fund are generally privately negotiated debt obligations
where the principal and/or interest is determined by reference to the
performance of a specific asset, benchmark asset, market or interest rate
(“reference measure”). The purchase of structured notes exposes the Fund
to the credit risk of the issuer of the structured product. Structured
notes may be leveraged, increasing the volatility of each structured
note’s value relative to the change in the reference measure. Structured
notes may also be less liquid and more difficult to price accurately than
less complex securities and instruments or more traditional debt
securities. |
∎ |
Tracking Error
Risk — The Fund may be subject to 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 (including shares of the Underlying Funds) 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,
among other reasons. These risks may be heightened during times of
increased market volatility or other unusual market conditions. In
addition, tracking error may result because a fund incurs fees and
expenses, while the Underlying Index does
not. |
∎ |
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. |
∎ |
Warrants Risk
— If the price of the underlying stock does not rise above
the exercise price before the warrant expires, the warrant generally
expires without any value and the Fund will lose any amount it paid for
the warrant. |
Thus,
investments in warrants may involve substantially more risk than
investments in common stock. Warrants may trade in the same markets as
their underlying stock; however, the price of the warrant does not
necessarily move with the price of the underlying
stock. |
∎ |
When-Issued and
Delayed Delivery Securities and Forward Commitments Risk —
When-issued and delayed delivery securities and forward commitments
involve the risk that the security the Fund buys will lose value prior to
its delivery. There also is the risk that the security will not be issued
or that the other party to the transaction will not meet its obligation.
If this occurs, the Fund may lose both the investment opportunity for the
assets it set aside to pay for the security and any gain in the security’s
price. |
|
1 Year | 5 Years | 10 Years | |||||||||
LifePath
Dynamic 2055 Fund — Class K Shares |
||||||||||||
Return
Before Taxes |
% | % | % | |||||||||
Return
After Taxes on Distributions |
% | % | % | |||||||||
Return
After Taxes on Distributions and Sale of Fund Shares |
% | % | % | |||||||||
LifePath
Dynamic 2055 Fund Custom Benchmark
(Reflects
no deduction for fees, expenses or taxes) |
% | % | % | |||||||||
Russell
1000® Index
(Reflects
no deduction for fees, expenses or taxes) |
% | % | % |
Portfolio
Manager |
Portfolio Manager of the Fund Since | Title | ||
Philip
Green |
2016 | Managing Director of BlackRock, Inc. | ||
Chris
Chung, CFA |
2020 | Managing Director of BlackRock, Inc. | ||
Michael
Pensky, CFA |
2024 | Managing Director of BlackRock, Inc. |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
Class K Shares | ||||
Management
Fee1 |
|||||
Distribution
and/or Service (12b‑1) Fees |
|||||
Other
Expenses1,2,3,4 |
|||||
Administration
Fees1 |
|||||
Independent
Expenses2,3,4 |
|||||
Acquired
Fund Fees and Expenses1,3 |
|||||
Total
Annual Fund Operating Expenses3 |
|||||
Fee
Waivers and/or Expense Reimbursements1,4 |
( |
||||
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements1,4 |
1 | As
described in the “Management of the Funds” section of the Fund’s
prospectus beginning on page 199, BlackRock Advisors, LLC (“BAL”) and BFA
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 of the Fund, through |
2 |
3 |
4 | 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 | |||||||||||||
Class K
Shares |
$ | $ | $ | $ |
Years Until Retirement | Equity Funds (includes REITs)1 |
Fixed‑Income Funds1 | ||||||||
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 | % | ||||||
1 BFA may adjust the
allocation to equity and fixed-income in the Fund, based on an assessment
of the current market conditions and the potential contribution of each
asset class to the expected risk and return characteristics of the Fund.
In general, the adjustments will be limited to +/- 10% relative to the
target allocations. At notional value after such adjustments, the Fund’s
equity allocation could exceed 100%. |
|
∎ |
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. |
∎ |
Allocation
Risk — The Fund’s ability to achieve its investment
objective depends upon BFA’S skill in determining the Fund’s strategic
asset class allocation and in selecting the best mix of Underlying Funds
and direct investments. There is a risk that BFA’s evaluations and
assumptions regarding asset classes or 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. |
∎ |
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. |
∎ |
Investments in
Underlying Funds Risk — The Fund’s investments are
concentrated 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 equity and bond markets
and 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. |
∎ |
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. |
∎ |
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. |
∎ |
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: |
∎ |
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,
and the rules thereunder. Increases and decreases in the value of the
Fund’s portfolio will be magnified when the Fund uses
leverage. |
∎ |
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. |
∎ |
Commodities
Related Investments Risk — Exposure to the commodities
markets may subject the Fund to greater volatility than investments in
traditional securities. The value of commodity-linked derivative
investments may be affected by changes in overall market movements,
commodity index volatility, changes in inflation, interest rates, or
factors affecting a particular industry or commodity, such as drought,
floods, weather, embargoes, tariffs and international economic, political
and regulatory developments. |
∎ |
Concentration
Risk — To the extent that the Fund or 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, the Fund or 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. |
∎ |
Convertible
Securities Risk — The market value of a convertible security
performs like that of a regular debt security; that is, if market interest
rates rise, the value of a convertible security usually falls. In
addition, convertible securities are subject to the risk that the issuer
will not be able to pay interest, principal or dividends when due, and
their market value may change based on changes in the issuer’s credit
rating or the market’s perception of the issuer’s creditworthiness. Since
it derives a portion of its value from the common stock into which it may
be converted, a convertible security is also subject to the same types of
market and issuer risks that apply to the underlying common stock,
including the potential for increased volatility in the price of the
convertible security. |
∎ |
Corporate Loan
Risk — Commercial banks and other financial institutions or
institutional investors make corporate loans to companies that need
capital to grow or restructure. Borrowers generally pay interest on
corporate loans at rates that change in response to changes in market
interest rates such as the Secured Overnight Financing Rate (“SOFR”), the
London Interbank Offered Rate (“LIBOR”) or the prime rates of U.S. banks.
As a result, the value of corporate loan investments is generally less
exposed to the adverse effects of shifts in market interest rates than
investments that pay a fixed rate of interest. The market for corporate
loans may be subject to irregular trading activity and wide bid/ask
spreads. In addition, transactions in corporate loans may settle on a
delayed basis. As a result, the proceeds from the sale of corporate loans
may not be readily available to make additional investments or to meet the
Fund’s redemption obligations. To the extent the extended settlement
process gives rise to short-term liquidity needs, the Fund may hold
additional cash, sell investments or temporarily borrow from banks and
other lenders. |
∎ |
Counterparty
Risk — The counterparty to an over‑the‑counter derivatives
contract or a borrower of the Fund’s securities may be unable or unwilling
to make timely principal, interest or settlement payments, or otherwise to
honor its obligations. Any such failure to honor its obligations may cause
significant losses to the Fund. |
∎ |
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. |
∎ |
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 — A natural disaster could occur in a geographic region
in which the Fund invests, which could adversely affect the economy or the
business operations of companies in the specific geographic region,
causing an adverse impact on the Fund’s investments in, or which are
exposed to, the affected region. |
∎ |
High Portfolio
Turnover Risk — The Fund may engage in active and frequent
trading of its portfolio securities. High portfolio turnover (more than
100%) may result in increased transaction costs to the Fund, including
brokerage commissions, dealer mark‑ups and other transaction costs on the
sale of the securities and on reinvestment in other securities. The sale
of Fund portfolio securities may result in the realization and/or
distribution to shareholders of higher capital gains or losses as compared
to a fund with less active trading policies. These effects of higher than
normal portfolio turnover may adversely affect Fund
performance. |
∎ |
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. |
∎ |
Indexed and
Inverse Securities Risk — Indexed and inverse securities
provide a potential return based on a particular index of value or
interest rates. The Fund’s return on these securities will be subject to
risk with respect to the value of the particular index. These securities
are subject to leverage risk and correlation risk. Certain indexed and
inverse securities have greater sensitivity to changes in interest rates
or index levels than other securities, and the Fund’s investment in such
instruments may decline significantly in value if interest rates or index
levels move in a way Fund management does not
anticipate. |
∎ |
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. |
∎ |
Investment
Style Risk — Under certain market conditions, growth
investments have performed better during the later stages of economic
expansion and value investments have performed better during periods of
economic recovery. Therefore, these investment styles may over time go in
and out of favor. At times when an investment style used by the Fund or an
Underlying Fund is out of favor, the Fund may underperform other funds
that use different investment
styles. |
∎ |
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. |
∎ |
Management
Risk — If a passively managed ETF does not fully replicate
the underlying index, it is subject to the risk that the manager’s
investment management strategy may not produce the intended
results. |
∎ |
Mezzanine Securities Risk — Mezzanine securities carry the risk
that the issuer will not be able to meet its obligations and that the
equity securities purchased with the mezzanine investments may lose
value. |
∎ |
Model Risk
— The Fund seeks to pursue its investment objective by using
proprietary models that incorporate quantitative analysis. Investments
selected using these models may perform differently than as forecasted due
to the factors incorporated into the models and the weighting of each
factor, changes from historical trends, and issues in the construction and
implementation of the models (including, but not limited to, software
issues and other technological issues). There is no guarantee that
BlackRock’s use of these models will result in effective investment
decisions for the
Fund. |
∎ |
National Closed
Market Trading Risk — To the extent that the underlying
securities and/or other assets 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 and/or other assets 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. |
∎ |
“New Issues”
Risk — “New issues” are initial public offerings (“IPOs”) of
equity securities. Securities issued in IPOs have no trading history, and
information about the companies may be available for very limited periods.
In addition, the prices of securities sold in IPOs may be highly volatile
or may decline shortly after the
IPO. |
∎ |
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. |
∎ |
Pay-in-kind
Bonds Risk — Similar to zero coupon obligations, pay-in-kind
bonds also carry additional risk as holders of these types of securities
realize no cash until the cash payment date unless a portion of such
securities is sold and, if the issuer defaults, the Fund may obtain no
return at all on its investment. The market price of pay-in-kind bonds is
affected by interest rate changes to a greater extent, and therefore tends
to be more volatile, than that of securities which pay interest in
cash. |
∎ |
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. |
∎ |
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. |
∎ |
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. 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. |
∎ |
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.
An 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. |
∎ |
Reverse
Repurchase Agreements Risk — Reverse repurchase agreements
involve the sale of securities held by the Fund with an agreement to
repurchase the securities at an agreed-upon price, date and interest
payment. Reverse repurchase agreements involve the risk that the other
party may fail to return the securities in a timely manner or at all. The
Fund could lose money if it is unable to recover the securities and the
value of the collateral held by the Fund, including the value of the
investments made with cash collateral, is less than the value of the
securities. These |
events
could also trigger adverse tax consequences for the Fund. In addition,
reverse repurchase agreements involve the risk that the interest income
earned in the investment of the proceeds will be less than the interest
expense. |
∎ |
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 (“NAV”). 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. |
∎ |
Short Sales
Risk — Because making short sales in securities that it does
not own exposes the Fund to the risks associated with those securities,
such short sales involve speculative exposure risk. The Fund will incur a
loss as a result of a short sale if the price of the security increases
between the date of the short sale and the date on which the Fund replaces
the security sold short. |
∎ |
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. |
∎ |
Small Cap and
Emerging Growth Securities Risk — Small cap or emerging
growth companies may have limited product lines or markets. They may be
less financially secure than larger, more established companies. They may
depend on a more limited management group than larger capitalized
companies. |
∎ |
Structured
Notes Risk — Structured notes and other related instruments
purchased by the Fund are generally privately negotiated debt obligations
where the principal and/or interest is determined by reference to the
performance of a specific asset, benchmark asset, market or interest rate
(“reference measure”). The purchase of structured notes exposes the Fund
to the credit risk of the issuer of the structured product. Structured
notes may be leveraged, increasing the volatility of each structured
note’s value relative to the change in the reference measure. Structured
notes may also be less liquid and more difficult to price accurately than
less complex securities and instruments or more traditional debt
securities. |
∎ |
Tracking Error
Risk — The Fund may be subject to 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 (including shares of the Underlying Funds) 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,
among other reasons. These risks may be heightened during times of
increased market volatility or other unusual market conditions. In
addition, tracking error may result because a fund incurs fees and
expenses, while the Underlying Index does
not. |
∎ |
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. |
∎ |
Warrants Risk
— If the price of the underlying stock does not rise above
the exercise price before the warrant expires, the warrant generally
expires without any value and the Fund will lose any amount it paid for
the warrant. Thus, investments in warrants may involve substantially more
risk than investments in common stock. Warrants may trade in the same
markets as their underlying stock; however, the price of the warrant does
not necessarily move with the price of the underlying
stock. |
∎ |
When-Issued and
Delayed Delivery Securities and Forward Commitments Risk —
When-issued and delayed delivery securities and forward commitments
involve the risk that the security the Fund buys will lose value prior to
its delivery. There also is the risk that the security will not be issued
or that the other party to the transaction will not meet its obligation.
If this occurs, the Fund may lose both the investment opportunity for the
assets it set aside to pay for the security and any gain in the security’s
price. |
For
the periods ended 12/31/23
Average
Annual Total Returns |
1 Year | 5 Years |
Since Inception
( |
|||||||||
LifePath
Dynamic 2060 Fund — Class K Shares |
||||||||||||
Return
Before Taxes |
% | % | % | |||||||||
Return
After Taxes on Distributions |
% | % | % | |||||||||
Return
After Taxes on Distributions and Sale of Fund Shares |
% | % | % | |||||||||
LifePath
Dynamic 2060 Fund Custom Benchmark
(Reflects
no deduction for fees, expenses or taxes) |
% | % | % | |||||||||
Russell
1000® Index
(Reflects
no deduction for fees, expenses or taxes) |
% | % | % |
Portfolio
Manager |
Portfolio Manager of the Fund Since | Title | ||
Philip
Green |
2017 | Managing Director of BlackRock, Inc. | ||
Chris
Chung, CFA |
2020 | Managing Director of BlackRock, Inc. | ||
Michael
Pensky, CFA |
2024 | Managing Director of BlackRock, Inc. |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
Class K Shares | ||||
Management
Fee1 |
|||||
Distribution
and/or Service (12b‑1) Fees |
|||||
Other
Expenses1,2,3,4 |
|||||
Administration
Fees1 |
|||||
Independent
Expenses2,3,4 |
|||||
Acquired
Fund Fees and Expenses1,3 |
|||||
Total
Annual Fund Operating Expenses3 |
|||||
Fee
Waivers and/or Expense Reimbursements1,4 |
( |
||||
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements1,4 |
1 | As
described in the “Management of the Funds” section of the Fund’s
prospectus beginning on page 199, BlackRock Advisors, LLC (“BAL”) and BFA
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 of the Fund, through |
2 |
3 |
4 | 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 | |||||||||||||
Class K
Shares |
$ | $ | $ | $ |
Years Until Retirement | Equity Funds (includes REITs)1 |
Fixed‑Income Funds1 | ||||||||
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 | % | ||||||
1 BFA may adjust the
allocation to equity and fixed-income in the Fund, based on an assessment
of the current market conditions and the potential contribution of each
asset class to the expected risk and return characteristics of the Fund.
In general, the adjustments will be limited to +/- 10% relative to the
target allocations. At notional value after such adjustments, the Fund’s
equity allocation could exceed 100%. |
|
∎ |
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.
|
∎ |
Allocation
Risk — The Fund’s ability to achieve its investment
objective depends upon BFA’S skill in determining the Fund’s strategic
asset class allocation and in selecting the best mix of Underlying Funds
and direct investments. There is a risk that BFA’s evaluations and
assumptions regarding asset classes or 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. |
∎ |
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.
|
∎ |
Investments in
Underlying Funds Risk — The Fund’s investments are
concentrated 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 equity and bond markets
and 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.
|
∎ |
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.
|
∎ |
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.
|
∎ |
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:
|
∎ |
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,
and the rules thereunder. Increases and decreases in the value of the
Fund’s portfolio will be magnified when the Fund uses leverage.
|
∎ |
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.
|
∎ |
Commodities
Related Investments Risk — Exposure to the commodities
markets may subject the Fund to greater volatility than investments in
traditional securities. The value of commodity-linked derivative
investments may be affected by changes in overall market movements,
commodity index volatility, changes in inflation, interest rates, or
factors affecting a particular industry or commodity, such as drought,
floods, weather, embargoes, tariffs and international economic, political
and regulatory developments. |
∎ |
Concentration
Risk — To the extent that the Fund or 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, the Fund or 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. |
∎ |
Convertible
Securities Risk — The market value of a convertible security
performs like that of a regular debt security; that is, if market interest
rates rise, the value of a convertible security usually falls. In
addition, convertible securities
|
are
subject to the risk that the issuer will not be able to pay interest,
principal or dividends when due, and their market value may change based
on changes in the issuer’s credit rating or the market’s perception of the
issuer’s creditworthiness. Since it derives a portion of its value from
the common stock into which it may be converted, a convertible security is
also subject to the same types of market and issuer risks that apply to
the underlying common stock, including the potential for increased
volatility in the price of the convertible security.
|
∎ |
Corporate Loan
Risk — Commercial banks and other financial institutions or
institutional investors make corporate loans to companies that need
capital to grow or restructure. Borrowers generally pay interest on
corporate loans at rates that change in response to changes in market
interest rates such as the Secured Overnight Financing Rate (“SOFR”), the
London Interbank Offered Rate (“LIBOR”) or the prime rates of U.S. banks.
As a result, the value of corporate loan investments is generally less
exposed to the adverse effects of shifts in market interest rates than
investments that pay a fixed rate of interest. The market for corporate
loans may be subject to irregular trading activity and wide bid/ask
spreads. In addition, transactions in corporate loans may settle on a
delayed basis. As a result, the proceeds from the sale of corporate loans
may not be readily available to make additional investments or to meet the
Fund’s redemption obligations. To the extent the extended settlement
process gives rise to short-term liquidity needs, the Fund may hold
additional cash, sell investments or temporarily borrow from banks and
other lenders. |
∎ |
Counterparty
Risk — The counterparty to an over‑the‑counter derivatives
contract or a borrower of the Fund’s securities may be unable or unwilling
to make timely principal, interest or settlement payments, or otherwise to
honor its obligations. Any such failure to honor its obligations may cause
significant losses to the Fund. |
∎ |
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. |
∎ |
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 — A natural disaster could occur in a geographic region
in which the Fund invests, which could adversely affect the economy or the
business operations of companies in the specific geographic region,
causing an adverse impact on the Fund’s investments in, or which are
exposed to, the affected region.
|
∎ |
High Portfolio
Turnover Risk — The Fund may engage in active and frequent
trading of its portfolio securities. High portfolio turnover (more than
100%) may result in increased transaction costs to the Fund, including
brokerage commissions, dealer mark‑ups and other transaction costs on the
sale of the securities and on reinvestment in other securities. The sale
of Fund portfolio securities may result in the realization and/or
distribution to shareholders of higher capital gains or losses as compared
to a fund with less active trading policies. These effects of higher than
normal portfolio turnover may adversely affect Fund performance.
|
∎ |
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.
|
∎ |
Indexed and
Inverse Securities Risk — Indexed and inverse securities
provide a potential return based on a particular index of value or
interest rates. The Fund’s return on these securities will be subject to
risk with respect to the value of the particular index. These securities
are subject to leverage risk and correlation risk. Certain indexed and
inverse securities have greater sensitivity to changes in interest rates
or index levels than other securities, and the Fund’s investment in such
instruments may decline significantly in value if interest rates or index
levels move in a way Fund management does not anticipate.
|
∎ |
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.
|
∎ |
Investment
Style Risk — Under certain market conditions, growth
investments have performed better during the later stages of economic
expansion and value investments have performed better during periods of
economic recovery. Therefore, these investment styles may over time go in
and out of favor. At times when an investment style used by the Fund or an
Underlying Fund is out of favor, the Fund may underperform other funds
that use different investment styles.
|
∎ |
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.
|
∎ |
Management
Risk — If a passively managed ETF does not fully replicate
the underlying index, it is subject to the risk that the manager’s
investment management strategy may not produce the intended results.
|
∎ |
Mezzanine
Securities Risk — Mezzanine securities carry the risk that
the issuer will not be able to meet its obligations and that the equity
securities purchased with the mezzanine investments may lose value.
|
∎ |
Model Risk
— The Fund seeks to pursue its investment objective by using
proprietary models that incorporate quantitative analysis. Investments
selected using these models may perform differently than as forecasted due
to the factors incorporated into the models and the weighting of each
factor, changes from historical trends, and issues in the construction and
implementation of the models (including, but not limited to, software
issues and other technological issues). There is no guarantee that
BlackRock’s use of these models will result in effective investment
decisions for the Fund.
|
∎ |
National Closed
Market Trading Risk — To the extent that the underlying
securities and/or other assets 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 and/or other assets 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. |
∎ |
“New Issues”
Risk — “New issues” are initial public offerings (“IPOs”) of
equity securities. Securities issued in IPOs have no trading history, and
information about the companies may be available for very limited periods.
In addition, the prices of securities sold in IPOs may be highly volatile
or may decline shortly after the IPO.
|
∎ |
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. |
∎ |
Pay-in-kind
Bonds Risk — Similar to zero coupon obligations, pay-in-kind
bonds also carry additional risk as holders of these types of securities
realize no cash until the cash payment date unless a portion of such
securities is sold and, if the issuer defaults, the Fund may obtain no
return at all on its investment. The market price of pay-in-kind bonds is
affected by interest rate changes to a greater extent, and therefore tends
to be more volatile, than that of securities which pay interest in cash.
|
∎ |
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.
|
∎ |
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. |
∎ |
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. 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. |
∎ |
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.
An 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.
|
∎ |
Reverse
Repurchase Agreements Risk — Reverse repurchase agreements
involve the sale of securities held by the Fund with an agreement to
repurchase the securities at an agreed-upon price, date and interest
payment. Reverse repurchase agreements involve the risk that the other
party may fail to return the securities in a timely manner or at all. The
Fund could lose money if it is unable to recover the securities and the
value of the collateral held by the Fund, including the value of the
investments made with cash collateral, is less than the value of the
securities. These events could also trigger adverse tax consequences for
the Fund. In addition, reverse repurchase agreements involve the risk that
the interest income earned in the investment of the proceeds will be less
than the interest expense. |
∎ |
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 (“NAV”). 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.
|
∎ |
Short Sales
Risk — Because making short sales in securities that it does
not own exposes the Fund to the risks associated with those securities,
such short sales involve speculative exposure risk. The Fund will incur a
loss as a result of a short sale if the price of the security increases
between the date of the short sale and the date on which the Fund replaces
the security sold short. |
∎ |
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. |
∎ |
Small Cap and
Emerging Growth Securities Risk — Small cap or emerging
growth companies may have limited product lines or markets. They may be
less financially secure than larger, more established companies. They may
depend on a more limited management group than larger capitalized
companies. |
∎ |
Structured
Notes Risk — Structured notes and other related instruments
purchased by the Fund are generally privately negotiated debt obligations
where the principal and/or interest is determined by reference to the
performance of a specific asset, benchmark asset, market or interest rate
(“reference measure”). The purchase of structured notes exposes the Fund
to the credit risk of the issuer of the structured product. Structured
notes may be leveraged, increasing the volatility of each structured
note’s value relative to the change in the reference measure. Structured
notes may also be less liquid and more difficult to price accurately than
less complex securities and instruments or more traditional debt
securities. |
∎ |
Tracking Error
Risk — The Fund may be subject to 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 (including shares of the Underlying Funds) 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,
among other reasons. These risks may be heightened during times of
increased market volatility or other unusual market conditions. In
addition, tracking error may result because a fund incurs fees and
expenses, while the Underlying Index does not.
|
∎ |
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.
|
∎ |
Warrants Risk
— If the price of the underlying stock does not rise above
the exercise price before the warrant expires, the warrant generally
expires without any value and the Fund will lose any amount it paid for
the warrant. Thus, investments in warrants may involve substantially more
risk than investments in common stock. Warrants may trade in the same
markets as their underlying stock; however, the price of the warrant does
not necessarily move with the price of the underlying stock.
|
∎ |
When-Issued and
Delayed Delivery Securities and Forward Commitments Risk —
When-issued and delayed delivery securities and forward commitments
involve the risk that the security the Fund buys will lose value prior to
its delivery. There also is the risk that the security will not be issued
or that the other party to the transaction will not meet its obligation.
If this occurs, the Fund may lose both the investment opportunity for the
assets it set aside to pay for the security and any gain in the security’s
price. |
For
the periods ended 12/31/23
Average
Annual Total Returns |
1 Year | Since
Inception ( |
||||||
LifePath
Dynamic 2065 Fund — Class K Shares |
||||||||
Return
Before Taxes |
% | % | ||||||
Return
After Taxes on Distributions |
% | % | ||||||
Return
After Taxes on Distributions and Sale of Fund Shares |
% | % | ||||||
LifePath
Dynamic 2065 Fund Custom Benchmark
(Reflects
no deduction for fees, expenses or taxes) |
% | % | ||||||
Russell
1000® Index
(Reflects
no deduction for fees, expenses or taxes) |
% | % |
Portfolio
Manager |
Portfolio Manager of the Fund Since | Title | ||
Philip
Green |
2019 | Managing Director of BlackRock, Inc. | ||
Chris
Chung, CFA |
2020 | Managing Director of BlackRock, Inc. | ||
Michael
Pensky, CFA |
2024 | Managing Director of BlackRock, Inc. |
∎ |
LifePath
Dynamic Retirement Fund seeks to provide for retirement outcomes based on
quantitatively measured risk. In pursuit of this objective, LifePath
Dynamic Retirement Fund will be broadly diversified across global asset
classes. |
∎ |
Each
of LifePath Dynamic 2025 Fund, LifePath Dynamic 2030 Fund, LifePath
Dynamic 2035 Fund, LifePath Dynamic 2040 Fund, LifePath Dynamic 2045 Fund,
LifePath Dynamic 2050 Fund, LifePath Dynamic 2055 Fund, LifePath Dynamic
2060 Fund and LifePath Dynamic 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 Dynamic 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. Philip Green, Chris Chung, CFA and Michael Pensky, CFA, 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. |
∎ |
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 BFA’s skill in determining the Fund’s strategic
asset class allocation and in selecting the best mix of Underlying Funds
and direct investments. There is a risk that BFA’s evaluations and
assumptions regarding asset classes or 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
asset class which they were selected to represent. 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: |
∎ |
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: |
∎ |
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 a portion 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. |
∎ |
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 Securities and Exchange Commission
(the “SEC”), the Fund is subject to the federal securities laws, including
the Investment Company Act of 1940, as amended (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. |
∎ |
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. |
∎ |
Asset Class Risk — The
securities or other assets in an 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, asset classes or sectors.
Various types of securities, currencies and indexes or assets 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 net asset value 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. |
∎ |
Collateralized
Debt Obligations Risk — In addition to the typical risks
associated with fixed-income securities and asset-backed securities,
collateralized debt obligations (“CDOs”), including collateralized loan
obligations, carry additional risks including, but not limited to:
(i) the possibility that distributions from collateral securities
will not be adequate to make interest or other payments; (ii) the
risk that the collateral may default or decline in value or be downgraded,
if rated by a nationally recognized statistical rating organization;
(iii) the Fund may invest in tranches of CDOs that are subordinate to
other tranches; (iv) the structure and complexity of the transaction
and the legal documents could lead to disputes among investors regarding
the characterization of proceeds; (v) the investment return achieved
by the Fund could be significantly different than those predicted by
financial models; (vi) the lack of a readily available secondary
market for CDOs; (vii) the risk of forced “fire sale” liquidation due
to technical defaults such as coverage test failures; and (viii) the
CDO’s manager may perform poorly. |
∎ |
Commodities
Related Investments Risk -- Exposure to the commodities
markets may subject the Fund to greater volatility than investments in
traditional securities. The value of commodity-linked derivative
investments may be affected by changes in overall market movements,
commodity index volatility, changes in inflation, interest rates, or
factors affecting a particular industry or commodity, such as drought,
floods, weather, embargoes, tariffs and international economic, political
and regulatory developments. |
∎ |
Concentration
Risk — To the extent that the Fund or 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, the Fund or 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. |
∎ |
Convertible
Securities Risk — The market value of a convertible security
performs like that of a regular debt security; that is, if market interest
rates rise, the value of a convertible security usually falls. In
addition, convertible securities are subject to the risk that the issuer
will not be able to pay interest, principal or dividends when due, and
their market value may change based on changes in the issuer’s credit
rating or the market’s perception of the issuer’s creditworthiness. Since
it derives a portion of its value from the common stock into which it may
be converted, a convertible security is also subject to the same types of
market and issuer risks that apply to the underlying common stock,
including the potential for increased volatility in the price of the
convertible security. |
∎ |
Corporate Loans
Risk — Commercial banks and other financial institutions or
institutional investors make corporate loans to companies that need
capital to grow or restructure. Borrowers generally pay interest on
corporate loans at rates that change in response to changes in market
interest rates such as the Secured Overnight Financing Rate (“SOFR”), the
London Interbank Offered Rate (“LIBOR”) or the prime rates of U.S. banks.
As a result, the value of corporate loan investments is generally less
exposed to the adverse effects of shifts in market interest rates than
investments that pay a fixed rate of interest. However, because the
trading market for certain corporate loans may be less developed than the
secondary market for bonds and notes, the Fund may experience difficulties
in selling its corporate loans. Transactions in corporate loans may settle
on a delayed basis. As a result, the proceeds from the sale of corporate
loans may not be readily available to make additional investments or to
meet the Fund’s redemption obligations. To the extent the extended
settlement process gives rise to short-term liquidity needs, the Fund may
hold additional cash, sell investments or temporarily borrow from banks
and other lenders. Leading financial institutions often act as agent for a
broader group of lenders, generally referred to as a syndicate. The
syndicate’s agent arranges the corporate loans, holds collateral and
accepts payments of principal and interest. If the agent develops
financial problems, the Fund may not recover its investment or recovery
may be delayed. By investing in a corporate loan, the Fund may become a
member of the syndicate. The market for corporate loans may be subject to
irregular trading activity and wide bid/ask spreads. The corporate loans
in which the Fund invests are subject to the risk of loss of principal and
income. Although borrowers frequently provide collateral to secure
repayment of these obligations they do not always do so. If they do
provide collateral, the value of the collateral may not completely cover
the borrower’s obligations at the time of a default. If a borrower files
for protection from its creditors under the U.S. bankruptcy laws, these
laws may limit the Fund’s rights to its collateral. In addition, the value
of collateral may erode during a bankruptcy case. In the event of a
bankruptcy, the holder of a corporate loan may not recover its principal,
may experience a long delay in recovering its investment and may not
receive interest during the delay. |
∎ |
Counterparty
Risk — The counterparty to an over‑the‑counter derivatives
contract or a borrower of the Fund’s securities may be unable or unwilling
to make timely principal, interest or settlement payments, or otherwise to
honor its obligations. Any such failure to honor its obligations may cause
significant losses to the Fund. |
∎ |
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. |
∎ |
Distressed
Securities Risk — Distressed securities are speculative and
involve substantial risks in addition to the risks of investing in junk
bonds. The Fund will generally not receive interest payments on the
distressed securities and may incur costs to protect its investment. In
addition, distressed securities involve the substantial risk that
principal will not be repaid. These securities may present a substantial
risk of default or may be in default at the time of investment. The Fund
may incur additional expenses to the extent it is required to seek
recovery upon a default in the payment of principal of or interest on its
portfolio holdings. In any reorganization or liquidation proceeding
relating to a portfolio company, the Fund may lose its entire investment
or may be required to accept cash or securities with a value less than its
original investment. Distressed securities and any securities received in
an exchange for such securities may be subject to restrictions on
resale. |
∎ |
Dollar Rolls
Risk — A dollar roll transaction involves a sale by the Fund
of a mortgage-backed, U.S. Treasury or other security (as permitted by the
Fund’s investment strategies) concurrently with an agreement by the Fund
to repurchase a similar security at a later date at an agreed-upon price.
The market value of the securities the Fund is required to purchase may
decline below the agreed upon repurchase price of those securities. If the
broker/dealer to whom the Fund sells securities becomes insolvent, the
Fund’s right to purchase or repurchase securities may be restricted.
Successful use of dollar rolls may depend upon the adviser’s ability to
correctly predict interest rates and prepayments, depending on the
underlying security. There is no assurance that dollar rolls can be
successfully employed. |
∎ |
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. |
∎ |
High Portfolio
Turnover Risk — The Fund may engage in active and frequent
trading of its portfolio securities. High portfolio turnover (more than
100%) may result in increased transaction costs to the Fund, including
brokerage commissions, dealer mark‑ups and other transaction costs on the
sale of the securities and on reinvestment in other securities. The sale
of Fund portfolio securities may result in the realization and/or
distribution to shareholders of higher capital gains or losses as compared
to a fund with less active trading policies. These effects of higher than
normal portfolio turnover may adversely affect Fund
performance. |
∎ |
High Yield
Bonds Risks — Although junk bonds generally pay higher rates
of interest than investment grade bonds, junk bonds are high risk
investments that are considered speculative and may cause income and
principal losses for the Fund. The major risks of junk bond investments
include: |
∎ |
Junk
bonds may be issued by less creditworthy issuers. Issuers of junk bonds
may have a larger amount of outstanding debt relative to their assets than
issuers of investment grade bonds. In the event of an issuer’s bankruptcy,
claims of other creditors may have priority over the claims of junk bond
holders, leaving few or no assets available to repay junk bond
holders. |
∎ |
Prices
of junk bonds are subject to extreme price fluctuations. Adverse changes
in an issuer’s industry and general economic conditions may have a greater
impact on the prices of junk bonds than on other higher rated fixed-income
securities. |
∎ |
Issuers
of junk bonds may be unable to meet their interest or principal payment
obligations because of an economic downturn, specific issuer developments,
or the unavailability of additional financing. |
∎ |
Junk
bonds frequently have redemption features that permit an issuer to
repurchase the security from the Fund before it matures. If the issuer
redeems junk bonds, the Fund may have to invest the proceeds in bonds with
lower yields and may lose income. |
∎ |
Junk
bonds may be less liquid than higher rated fixed-income securities, even
under normal economic conditions. There are fewer dealers in the junk bond
market, and there may be significant differences in the prices quoted for
junk bonds by the dealers. Because they are less liquid than higher rated
fixed-income securities, judgment may play a greater role in valuing junk
bonds than is the case with securities trading in a more liquid
market. |
∎ |
The
Fund may incur expenses to the extent necessary to seek recovery upon
default or to negotiate new terms with a defaulting
issuer. |
∎ |
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. |
∎ |
Indexed and
Inverse Securities Risk — Indexed and inverse securities
provide a potential return based on a particular index of value or
interest rates. The Fund’s return on these securities will be subject to
risk with respect to the value of the particular index. These securities
are subject to leverage risk and correlation risk. Certain indexed and
inverse securities have greater sensitivity to changes in interest rates
or index levels than other securities, and the Fund’s investment in such
instruments may decline significantly in value if interest rates or index
levels move in a way Fund management does not
anticipate. |
∎ |
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. |
∎ |
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. |
∎ |
Investment
Style Risk — Under certain market conditions, growth
investments have performed better during the later stages of economic
expansion and value investments have performed better during periods of
economic |
recovery.
Therefore, these investment styles may over time go in and out of favor.
At times when an investment style used by the Fund or an Underlying Fund
is out of favor, the Fund may underperform other funds that use different
investment styles. |
∎ |
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. |
∎ |
Management
Risk — If a passively managed ETF does not fully replicate
the underlying index, it is subject to the risk that the manager’s
investment management strategy may not produce the intended
results. |
∎ |
Mezzanine
Securities Risk — Mezzanine securities generally are rated
below investment grade and frequently are unrated and present many of the
same risks as senior loans, second lien loans and non-investment grade
bonds. However, unlike senior loans and second lien loans, mezzanine
securities are not a senior or secondary secured obligation of the related
borrower. They typically are the most subordinated debt obligation in an
issuer’s capital structure. Mezzanine securities also may often be
unsecured. Mezzanine securities therefore are subject to the additional
risk that the cash flow of the related borrower and the property securing
the loan may be insufficient to repay the scheduled obligation after
giving effect to any senior obligations of the related borrower. Mezzanine
securities will be subject to certain additional risks to the extent that
such loans may not be protected by financial covenants or limitations upon
additional indebtedness. Investment in mezzanine securities is a highly
specialized investment practice that depends more heavily on independent
credit analysis than investments in other types of debt
obligations. |
∎ |
Model Risk
— The Fund seeks to pursue its investment objective by using
proprietary models that incorporate quantitative analysis. Investments
selected using these models may perform differently than as forecasted due
to the factors incorporated into the models and the weighting of each
factor, as well as the level and scope of changes from historical trends.
In addition, issues in the construction and implementation of the models,
including software or hardware malfunction, power loss, software bugs,
malicious code, viruses, system crashes and other technological failures
or various other events or circumstances within or beyond the control of
BlackRock, may adversely impact the Fund. Please see also “Cyber Security
Risk” below. There is no guarantee that BlackRock’s use of these models
will result in effective investment decisions for the
Fund. |
∎ |
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 commercial
mortgage-backed securities (“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. |
∎ |
Municipal
Securities Risks — Municipal securities risks include the
ability of the issuer to repay the obligation, the relative lack of
information about certain issuers of municipal securities, and the
possibility of future legislative changes which could affect the market
for and value of municipal securities. Budgetary constraints of local,
state, and federal governments upon which the issuers may be relying for
funding may also impact municipal securities. These risks
include: |
∎ |
National Closed
Market Trading Risk — To the extent that the underlying
securities and/or other assets 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 and/or other assets 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. |
∎ |
“New Issues”
Risk — “New issues” are initial public offerings (“IPOs”) of
equity securities. Investments in companies that have recently gone public
have the potential to produce substantial gains for the Fund. However,
there is no assurance that the Fund will have access to profitable IPOs
and therefore investors should not rely on these past gains as an
indication of future performance. The investment performance of the Fund
during periods when it is unable to invest significantly or at all in IPOs
may be lower than during periods when the Fund is able to do so. In
addition, as the Fund increases in size, the impact of IPOs on the Fund’s
performance will generally decrease. Securities issued in IPOs are subject
to many of the same risks as investing in companies with smaller market
capitalizations. Securities issued in IPOs have no trading history, and
information about the companies may be available for very limited periods.
In addition, the prices of securities sold in IPOs may be highly volatile
or may decline shortly after the IPO. When an IPO is brought to the
market, availability may be limited and the Fund may not be able to buy
any shares at the offering price, or, if it is able to buy shares, it may
not be able to buy as many shares at the offering price as it would
like. |
∎ |
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. |
∎ |
Pay-in-kind
Bonds Risk — Similar to zero coupon obligations, pay-in-kind
bonds also carry additional risk as holders of these types of securities
realize no cash until the cash payment date unless a portion of such
securities is sold and, if the issuer defaults, the Fund may obtain no
return at all on its investment. The market price of pay-in-kind bonds is
affected by interest rate changes to a greater extent, and therefore tends
to be more volatile, than that of securities which pay interest in cash.
Additionally, current federal tax law requires the holder of certain
pay-in-kind bonds to accrue income with respect to these securities prior
to the receipt of cash payments. To maintain its qualification as a
regulated investment company and avoid liability for U.S. federal income
and excise taxes, the Fund may be required to distribute income accrued
with respect to these securities and may have to dispose of portfolio
securities under disadvantageous circumstances in order to generate cash
to satisfy these distribution requirements. |
∎ |
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. |
∎ |
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.
An 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 and Purchase and Sale Contracts Risk — If the
other party to a repurchase agreement or purchase and sale contract
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 in either
situation and the market value of the security declines, the Fund may lose
money. |
∎ |
Reverse
Repurchase Agreements Risk — Reverse repurchase agreements
involve the sale of securities held by the Fund with an agreement to
repurchase the securities at an agreed-upon price, date and interest
payment. Reverse repurchase agreements involve the risk that the other
party may fail to return the securities in a timely manner or at all. The
Fund could lose money if it is unable to recover the securities and the
value of the collateral held by the Fund, including the value of the
investments made with cash collateral, is less than the value of the
securities. These events could also trigger adverse tax consequences for
the Fund. In addition, reverse repurchase agreements involve the risk that
the interest income earned in the investment of the proceeds will be less
than the interest expense. |
∎ |
Risks of Loan
Assignments and Participations — As the purchaser of an
assignment, the Fund typically succeeds to all the rights and obligations
of the assigning institution and becomes a lender under the credit
agreement with respect to the debt obligation; however, the Fund may not
be able unilaterally to enforce all rights and remedies under the loan and
with regard to any associated collateral. Because assignments may be
arranged through private negotiations between potential assignees and
potential assignors, the rights and obligations acquired by the Fund as
the purchaser of an assignment may differ from, and be more limited than,
those held by the assigning lender. In addition, if the loan is
foreclosed, the Fund could become part owner of any collateral and could
bear the costs and liabilities of owning and disposing of the collateral.
The Fund may be required to pass along to a purchaser that buys a loan
from the Fund by way of assignment a portion of any fees to which the Fund
is entitled under the loan. In connection with purchasing participations,
the Fund generally will have no right to enforce compliance by the
borrower with the terms of the loan agreement relating to the loan, nor
any rights of set‑off against the borrower, and the Fund may not directly
benefit from any collateral supporting the loan in which it has purchased
the participation. As a result, the Fund will be subject to the credit
risk of both the borrower and the lender that is selling the
participation. In the event of the insolvency of the lender selling a
participation, the Fund may be treated as a general creditor of the lender
and may not benefit from any set‑off between the lender and the
borrower. |
∎ |
Second Lien
Loans Risk — Second lien loans generally are subject to
similar risks as those associated with investments in senior loans.
Because second lien loans are subordinated or unsecured and thus lower in
priority of payment to senior loans, they are subject to the additional
risk that the cash flow of the borrower and property securing the loan or
debt, if any, may be insufficient to meet scheduled payments after giving
effect to the senior secured obligations of the borrower. This risk is
generally higher for subordinated unsecured loans or debt, which are not
backed by a security interest in any specific collateral. Second lien
loans generally have greater price volatility and may be less liquid than
senior loans. |
∎ |
Senior Loans
Risk — There is less readily available, reliable information
about most senior loans than is the case for many other types of
securities. In addition, there is no minimum rating or other independent
evaluation of a borrower or its securities limiting the Fund’s
investments, and BFA relies primarily on its own evaluation of a
borrower’s credit quality rather than on any available independent
sources. As a result, the Fund is particularly dependent on the analytical
abilities of BFA. |
∎ |
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 (“NAV”). 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. |
∎ |
Short Sales
Risk — Because making short sales in securities that it does
not own exposes the Fund to the risks associated with those securities,
such short sales involve speculative exposure risk. The Fund will incur a
loss as a result of a short sale if the price of the security increases
between the date of the short sale and the date on which the Fund replaces
the security sold short. The Fund will realize a gain if the security
declines in price between those dates. As a result, if the Fund makes
short sales in securities that increase in value, it will likely
underperform similar funds that do not make short sales in securities they
do not own. There can be no assurance that the
Fund |
will
be able to close out a short sale position at any particular time or at an
acceptable price. Although the Fund’s gain is limited to the amount at
which it sold a security short, its potential loss is limited only by the
maximum attainable price of the security, less the price at which the
security was sold. The Fund may also pay transaction costs and borrowing
fees in connection with short sales. |
∎ |
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. |
∎ |
Small Cap and
Emerging Growth Securities Risk — Small cap or emerging
growth companies may have limited product lines or markets. They may be
less financially secure than larger, more established companies. They may
depend on a small number of key personnel. If a product fails or there are
other adverse developments, or if management changes, the Fund’s
investment in a small cap or emerging growth company may lose substantial
value. 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. |
∎ |
Sovereign Debt
Risk — Sovereign debt instruments are subject to the risk
that a governmental entity may delay or refuse to pay interest or repay
principal on its sovereign debt, due, for example, to cash flow problems,
insufficient foreign currency reserves, political considerations, the
relative size of the governmental entity’s debt position in relation to
the economy or the failure to put in place economic reforms required by
the International Monetary Fund or other multilateral agencies. If a
governmental entity defaults, it may ask for more time in which to pay or
for further loans. There is no legal process for collecting sovereign debt
that a government does not pay nor are there bankruptcy proceedings
through which all or part of the sovereign debt that a governmental entity
has not repaid may be collected. |
∎ |
Structured
Notes Risk — Structured notes and other related instruments
purchased by the Fund are generally privately negotiated debt obligations
where the principal and/or interest is determined by reference to the
performance of a specific asset, benchmark asset, market or interest rate
(“reference measure”). The interest rate or the principal amount payable
upon maturity or redemption may increase or decrease, depending upon
changes in the value of the reference measure. The terms of a structured
note may provide that, in certain circumstances, no principal is due at
maturity and, therefore, may result in a loss of invested capital by the
Fund. The interest and/or principal payments that may be made on a
structured product may vary widely, depending on a variety of factors,
including the volatility of the reference
measure. |
∎ |
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. |
∎ |
Supranational
Entities Risk — The Fund may invest in obligations issued or
guaranteed by the World Bank. The government members, or “stockholders,”
usually make initial capital contributions to the World Bank and in many
cases are committed to make additional capital contributions if the World
Bank is unable to repay its borrowings. There is no guarantee that one or
more stockholders of the World Bank will continue to make any necessary
additional capital contributions. If such contributions are not made, the
entity may be unable to pay interest or repay principal on its debt
securities, and the Fund may lose money on such
investments. |
∎ |
Tender Option
Bonds and Related Securities Risk — The Fund’s participation
in tender option bond transactions may reduce the Fund’s returns and/or
increase volatility. Investments in tender option bond transactions expose
the Fund to counterparty risk and leverage risk. An investment in a tender
option bond transaction typically will involve greater risk than an
investment in a municipal fixed rate security, including the risk of loss
of principal. Distributions on residual inverse floating rate interest
tender option bonds (“TOB Residuals”) will bear an inverse relationship to
short-term municipal security interest rates. Distributions on TOB
Residuals paid to the Fund will be reduced or, in the extreme, eliminated
as short-term municipal interest rates rise and will increase when
short-term municipal interest rates fall. TOB Residuals generally will
underperform the market for fixed rate municipal securities in a rising
interest rate environment. |
∎ |
Tracking Error
Risk — The Fund may be subject to 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 (including shares of the Underlying Funds) 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,
among other reasons. These risks may be heightened during times of
increased market volatility or other unusual market conditions. In
addition, tracking error may result because a fund incurs fees and
expenses, while the Underlying Index does not. |
∎ |
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. |
∎ |
U.S. Government
Mortgage-Related Securities Risk — There are a number of
important differences among the agencies and instrumentalities of the U.S.
Government that issue mortgage-related securities and among the securities
that they issue. Mortgage-related securities guaranteed by the Government
National Mortgage Association (“GNMA” or “Ginnie Mae”) are guaranteed as
to the timely payment of principal and interest by GNMA and such guarantee
is backed by the full faith and credit of the United States. GNMA
securities also are supported by the right of GNMA to borrow funds from
the U.S. Treasury to make payments under its guarantee. Mortgage-related
securities issued by Fannie Mae or Freddie Mac are solely the obligations
of Fannie Mae or Freddie Mac, as the |
case
may be, and are not backed by or entitled to the full faith and credit of
the United States but are supported by the right of the issuer to borrow
from the Treasury. |
∎ |
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. |
∎ |
Warrants Risk
— If the price of the underlying stock does not rise above
the exercise price before the warrant expires, the warrant generally
expires without any value and the Fund will lose any amount it paid for
the warrant. Thus, investments in warrants may involve substantially more
risk than investments in common stock. Warrants may trade in the same
markets as their underlying stock; however, the price of the warrant does
not necessarily move with the price of the underlying
stock. |
∎ |
When-Issued and
Delayed Delivery Securities and Forward Commitments Risk —
When-issued and delayed delivery securities and forward commitments
involve the risk that the security the Fund buys will lose value prior to
its delivery. There also is the risk that the security will not be issued
or that the other party to the transaction will not meet its obligation.
If this occurs, the Fund may lose both the investment opportunity for the
assets it set aside to pay for the security and any gain in the security’s
price. |
∎ |
Zero Coupon
Securities Risk —
While interest payments are not made on such securities, holders of such
securities are deemed to have received income (“phantom income”) annually,
notwithstanding that cash may not be received currently. The effect of
owning instruments that do not make current interest payments is that a
fixed yield is earned not only on the original investment but also, in
effect, on all discount accretion during the life of the obligations. This
implicit reinvestment of earnings at a fixed rate eliminates the risk of
being unable to invest distributions at a rate as high as the implicit
yield on the zero coupon bond, but at the same time eliminates the
holder’s ability to reinvest at higher rates in the future. For this
reason, some of these securities may be subject to substantially greater
price fluctuations during periods of changing market interest rates than
are comparable securities that pay interest currently. Longer term zero
coupon bonds are more exposed to interest rate risk than shorter term zero
coupon bonds. These investments benefit the issuer by mitigating its need
for cash to meet debt service, but also require a higher rate of return to
attract investors who are willing to defer receipt of
cash. |
∎ |
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. In many of the developing market Asia-Pacific countries, there is a
high concentration of market capitalization and trading volume in a small
number of issuers representing a limited number of industries, as well as
a high concentration of investors and financial intermediaries. Many
developing market Asia-Pacific countries have experienced rapid growth and
industrialization in recent years, but there is no assurance that this
growth rate will be maintained. Other developing market Asia-Pacific
countries, however, have experienced high inflation, high unemployment,
currency devaluations and restrictions, and over-extension of credit.
Brokers in developing market Asia-Pacific countries typically are fewer in
number and less well capitalized than brokers in the United
States. |
∎ |
Canada — Investments in Canadian
issuers may subject the Fund to economic risk specific to Canada. Among
other things, the Canadian economy is heavily dependent on relationships
with certain key trading partners, including the United States and China.
The Canadian economy is sensitive to fluctuations in certain commodity
markets. |
∎ |
European
Economic Risk — 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. |
∎ |
Risk of
Investing in 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. |
∎ |
Consumer
Discretionary Sector Risk — The success of consumer product
manufacturers and retailers is tied closely to the performance of domestic
and international economies, interest rates, supply chains, exchange
rates, competition, consumer confidence, changes in demographics and
consumer preferences. Companies in the consumer discretionary sector
depend heavily on disposable household income and consumer spending, and
may be strongly affected by social trends and marketing campaigns. These
companies may be subject to severe competition, which may have an adverse
impact on their profitability. |
∎ |
Energy Sector
Risk — The performance of energy-related commodities is
generally cyclical and highly dependent on energy prices. Energy prices
may fluctuate significantly due to, among other things, national and
international political changes, Organization of Petroleum Exporting
Countries (“OPEC”) and non-OPEC energy exporters, such as the Russian
Federation, policies and relationships, and the economies of key
energy-consuming countries. The market value of energy-related commodities
may decline for many reasons, including, among other things: changes in
the |
levels
and volatility of global energy prices, energy supply and demand, and
capital expenditures on exploration and production of energy sources;
exchange rates, interest rates, economic conditions, and tax treatment;
terrorism, natural disasters and other catastrophes; and energy
conservation efforts, increased competition and technological advances.
The energy sector may also be subject to substantial government regulation
and contractual fixed pricing. In 2020, in the context of the COVID-19
outbreak and disputes among oil-producing countries regarding potential
limits on the production of crude oil, the energy sector has experienced
increased volatility. In particular, significant market volatility
occurred in the crude oil markets as well as the oil futures markets,
which resulted in the market price of the front month WTI crude oil
futures contract falling below zero for a period of
time. |
∎ |
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 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 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
Underlying 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. |
∎ |
Healthcare
Sector Risk — The profitability of companies in the
healthcare sector, including healthcare equipment and services companies,
may be affected by government regulations and government healthcare
programs, increases or decreases in the cost of medical products and
services, an increased emphasis on outpatient services, demand for medical
products and services and product liability claims, among other factors.
Many healthcare companies are heavily dependent on patent protection, and
the expiration of a company’s patent may adversely affect that company’s
profitability. Healthcare companies are subject to competitive forces that
may result in price discounting, and may be thinly capitalized and
susceptible to product obsolescence. In addition, a number of legislative
proposals concerning healthcare have been considered by the U.S. Congress
in recent years. It is unclear what proposals will ultimately be enacted,
if any, and what effect they may have on companies in the healthcare
sector. |
∎ |
Industrials
Sector Risk — The value of securities issued by companies in
the industrials sector may be adversely affected by supply and demand
changes related to their specific products or services and industrials
sector products in general. The products of manufacturing companies may
face obsolescence due to rapid technological developments and frequent new
product introduction. Global events, trade disputes and changes in
government regulations, economic conditions and exchange rates may
adversely affect the performance of companies in the industrials sector.
Companies in the industrials sector may be adversely affected by liability
for environmental damage and product liability claims. The industrials
sector may also be adversely affected by changes or trends in commodity
prices, which may be influenced by unpredictable factors. Companies in the
industrials sector, particularly aerospace and defense companies, may also
be adversely affected by government spending policies because companies in
this sector tend to rely to a significant extent on government demand for
their products and services. |
∎ |
Materials
Sector Risk — Companies in the materials sector may be
adversely affected by commodity price volatility, exchange rate
fluctuations, social and political unrest, war import or export controls,
increased competition, depletion of resources, technical advances, labor
relations, over-production, decreases in the demand for materials,
litigation and government regulations, among other factors. Companies in
the materials sector are also at risk of liability for environmental
damage and product liability claims and may incur significant
environmental remediation costs in complying with environmental laws.
Production of materials may exceed demand as a result of market imbalances
or economic downturns, leading to poor investment
returns. |
∎ |
Technology
Sector Risk — Technology companies, including information
technology companies, face intense competition, both domestically and
internationally, which may have an adverse effect on a company’s profit
margins. Technology companies may have limited product lines, markets,
financial resources or personnel. The products of technology companies may
face obsolescence due to rapid technological developments, frequent new
product introduction, unpredictable changes in growth rates, aggressive
pricing, changes in demand, and competition for the services of qualified
personnel. Companies in the technology sector are heavily dependent on
patent and other intellectual property rights. A technology company’s loss
or impairment of these rights may adversely affect the company’s
profitability. Companies in the technology sector may face increased
government and regulatory scrutiny and may be subject to adverse
government or regulatory action. The technology sector may also be
adversely affected by changes or trends in commodity prices, which may be
influenced or characterized by unpredictable
factors. |
∎ |
Telecommunications Sector Risk —
The telecommunications sector is subject to extensive government
regulation. The costs of complying with governmental regulations, delays
or failure to receive required regulatory approvals, or the enactment of
new regulatory requirements may negatively affect the business of
telecommunications companies. Government actions around the world,
specifically in the area of pre-marketing clearance of products and
prices, can be arbitrary and unpredictable. Companies in the
telecommunications sector may encounter distressed cash flows due to the
need to commit substantial capital to meet increasing competition,
particularly in developing new products and services using new technology.
Technological innovations may make the products and services of certain
telecommunications companies obsolete. Telecommunications providers are
generally required to obtain franchises or licenses in order to provide
services in a given location. Licensing and franchise rights in the
telecommunications sector are limited, which may provide an advantage to
certain participants. Limited availability of such rights, high barriers
to market entry and regulatory oversight, among other factors, have led to
consolidation of companies within the sector, which could lead to further
regulation or other negative effects in the
future. |
∎ |
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. |
∎ |
Investment
Companies and ETFs Risk — Subject to the limitations set
forth in the Investment Company Act and the rules thereunder, the Fund may
acquire shares in other investment companies and in ETFs, some of which
may be affiliated investment companies. The market value of the shares of
other investment companies and ETFs may differ from their net asset value.
As an investor in investment companies and ETFs, the Fund would bear its
ratable share of that entity’s expenses, including its investment advisory
and administration fees, while continuing to pay its own advisory and
administration fees and other expenses (to the extent not offset by
BlackRock through waivers). As a result, shareholders will be absorbing
duplicate levels of fees with respect to investments in other investment
companies and ETFs (to the extent not offset by BlackRock through
waivers). |
∎ |
Investment in
Other Investment Companies Risk — As with other investments,
investments in other investment companies, including ETFs, are subject to
market and selection risk. In addition, if the Fund acquires shares of
investment companies, including ones affiliated with the Fund,
shareholders bear both their proportionate share of expenses in the Fund
(including management and advisory fees) and, indirectly, the expenses of
the investment companies (to the extent not offset by BlackRock through
waivers). To the extent the Fund is held by an affiliated fund, the
ability of the Fund itself to hold other investment companies may be
limited.
|
∎ |
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 or that the size of the Fund would be
maintained. Redemptions of a large number of Fund shares by these
shareholders may adversely affect the Fund’s liquidity and net assets.
These redemptions may force the Fund to sell portfolio securities to meet
redemption requests 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 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 tax year. The Fund also may be required to sell its more liquid Fund
investments to meet a large redemption, in which case the Fund’s remaining
assets may be less liquid, more volatile, and more difficult to price. In
addition, large redemptions can result in a Fund’s current expenses being
allocated over a smaller asset base, which generally results in an
increase in a Fund’s expense ratio. Because large redemptions can
adversely affect a portfolio manager’s ability to implement a fund’s
investment strategy, each Fund also reserves the right to redeem in-kind,
subject to certain conditions. In addition, large purchases of Fund shares
may adversely affect the Fund’s performance to the extent that the Fund is
delayed in investing new cash and is required to maintain a larger cash
position than it ordinarily would, diluting its investment
returns. |
∎ |
Master Limited
Partnerships Risk — The common units of a master limited
partnership (“MLP”) are listed and traded on U.S. securities exchanges and
their value fluctuates predominantly based on prevailing market conditions
and the success of the MLP. Unlike owners of common stock of a
corporation, owners of common units have limited voting rights and have no
ability to annually elect directors. In the event of liquidation, common
units have preference over subordinated units, but not over debt or
preferred units, to the remaining assets of the
MLP. |
∎ |
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. |
∎ |
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 BlackRock 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. |
∎ |
Reference Rate
Replacement Risk — The Fund may be exposed to financial
instruments that recently transitioned from, or continue to be tied to,
the London Interbank Offered Rate (“LIBOR”) to determine payment
obligations, financing terms, hedging strategies or investment value. The
United Kingdom’s Financial Conduct Authority (“FCA”), which regulates
LIBOR, has ceased publishing all LIBOR settings. In April 2023, however,
the FCA announced that some USD LIBOR settings will continue to be
published under a synthetic methodology until September 30, 2024 for
certain legacy contracts. The Secured Overnight Financing Rate (“SOFR”) is
a broad measure of the cost of borrowing cash overnight collateralized by
U.S. Treasury securities in the repurchase agreement (“repo”) market and
has been used increasingly on a voluntary basis in new instruments and
transactions. Under U.S. regulations that implement a statutory fallback
mechanism to replace LIBOR, benchmark rates based on SOFR have replaced
LIBOR in certain financial contracts Neither the effect of the LIBOR
transition process nor its ultimate success can yet be known. While some
existing LIBOR-based instruments may contemplate a scenario where LIBOR is
no longer available by providing for an alternative rate-setting
methodology, there may be significant uncertainty regarding the
effectiveness of any such alternative methodologies to replicate LIBOR.
Not all existing LIBOR-based instruments may have alternative rate-setting
provisions and there remains uncertainty regarding the willingness and
ability of issuers to add alternative rate-setting provisions in certain
existing instruments. Parties to contracts, securities or other
instruments using LIBOR may disagree on transition rates or the
application of transition regulation, potentially resulting in uncertainty
of performance and the possibility of litigation. The Fund may have
instruments linked to other interbank offered rates that may also cease to
be published in the future. |
∎ |
Reliance on
Advisor Risk — The Fund is dependent upon services and
resources provided by BlackRock, and therefore BlackRock’s parent,
BlackRock, Inc. BlackRock 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 BlackRock will allocate a
substantial portion of his or her time to the Fund. The loss of, or
changes in, BlackRock’s personnel could have a negative effect on the
performance or the continued operation of the
Fund. |
∎ |
Restricted
Securities Risk — Limitations on the resale of restricted
securities may have an adverse effect on their marketability, and may
prevent the Fund from disposing of them promptly at advantageous prices.
Restricted securities may not be listed on an exchange and may have no
active trading market. In order to sell such securities, the Fund may have
to bear the expense of registering the securities for resale and the risk
of substantial delays in effecting the registration. Other transaction
costs may be higher for restricted securities than unrestricted
securities. Restricted securities may be difficult to value because market
quotations may not be readily available, and the securities may have
significant volatility. Also, the Fund may get only limited information
about the issuer of a given restricted security, and therefore may be less
able to predict a loss. Certain restricted securities may involve a high
degree of business and financial risk and may result in substantial losses
to the Fund. |
∎ |
Rights Risk
— The failure to exercise subscription rights to purchase
common stock would result in the dilution of the Fund’s interest in the
issuing company. The market for such rights is not well developed, and,
accordingly, the Fund may not always realize full value on the sale of
rights.
|
∎ |
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. |
∎ |
Standby
Commitment Agreements Risk — Standby commitment agreements
involve the risk that the security the Fund buys will lose value prior to
its delivery to the Fund and will no longer be worth what the Fund has
agreed to pay for it. These agreements also involve the risk that if the
security goes up in value, the counterparty will decide not to issue the
security. In this case, the Fund loses both the investment opportunity for
the assets it set aside to pay for the security and any gain in the
security’s price. |
∎ |
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
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. |
∎ |
Valuation
Risk — The price the Fund could receive upon the sale of any
particular portfolio investment may differ from the Fund’s valuation of
the investment, particularly for securities that trade in thin or volatile
markets or that are valued using a fair valuation methodology or a price
provided by an independent pricing service. As a result, the price
received upon the sale of an investment may be less than the value
ascribed by the Fund, and the Fund could realize a greater than expected
loss or lesser than expected gain upon the sale of the investment. Pricing
services that value fixed-income securities generally utilize a range of
market-based and security-specific inputs and assumptions, as well as
considerations about general market conditions, to establish a price.
Pricing services generally value fixed-income securities assuming orderly
transactions of an institutional round lot size, but may be held or
transactions may be conducted in such securities in smaller, odd lot
sizes. Odd lots may trade at lower prices than institutional round lots.
The Fund’s ability to value its investments may also be impacted by
technological issues and/or errors by pricing services or other
third-party service providers. |
Class K Shares at a Glance | ||
Availability | Available only to (i) certain employee benefit plans, such as health savings accounts, and certain employer-sponsored retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may purchase shares of a Fund through a Financial Intermediary that has entered into an agreement with the Distributor to purchase such shares, (iii) “Institutional Investors,” which include, but are not limited to, endowments, foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and insurance company separate accounts, each of which may purchase shares of a Fund through a Financial Intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private banks that purchase shares of the Fund through a Financial Intermediary that has entered into an agreement with the Distributor to sell such shares, (v) fee-based advisory platforms of a Financial Intermediary that (a) has specifically acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the Financial Intermediary shall offer such shares to fee-based advisory clients through an omnibus account held at each Fund or (b) transacts in a Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who met the eligibility criteria for BlackRock Shares or Class K Shares prior to August 15, 2016 and have continually held Class K Shares of a Fund in the same account since August 15, 2016. | |
Minimum Investment |
$5 million
minimum initial investment for Institutional Investors.
There
is no minimum initial investment requirement for any Employer-Sponsored
Retirement Plans or any other eligible investors other than Institutional
Investors.
There
is no minimum investment amount for additional purchases. | |
Initial Sales Charge? | No. Entire purchase price is invested in shares of the Fund. | |
Deferred Sales Charge? | No. | |
Distribution and Service (12b-1) Fees? | No. | |
Redemption Fees? | No. |
How to Buy Shares | ||||||
Your Choices | Important Information for You to Know | |||||
Initial Purchase | Determine the amount of your investment |
There
is no minimum initial investment for any Employer-Sponsored Retirement
Plans or any other investors other than Institutional Investors.
For
Institutional Investors, there is a $5 million minimum investment for all
accounts. | ||||
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 each 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) | For investors not purchasing shares through an Employer-Sponsored Retirement Plan, to purchase shares directly from BlackRock, call (800) 537-4942 and request a new account application. | |||||
Add to Your Investment | Purchase additional shares | There is no minimum investment amount 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 Employer-Sponsored Retirement Plan. | |||||
Or contact BlackRock (for accounts held directly with BlackRock) |
For
investors not purchasing shares through an Employer-Sponsored Retirement
Plan:
Purchase by Telephone: Call the Fund at
(800) 537-4942 and speak with one of our representatives. The Funds have
the right to reject any telephone request for any reason.
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 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. Limits on
amounts that may be purchased via Internet may vary. For additional
information call BlackRock at (800) 537-4942.
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.
Each
Fund employs 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 BlackRock at (800) 537‑4942 (for investors who are not purchasing shares through an Employer-Sponsored Retirement Plan) or contact your Financial Intermediary. |
How to Buy Shares (continued) | ||||||
Your Choices | Important Information for You to Know | |||||
How to Pay for Shares | Making payment for purchases |
If
you are purchasing shares through an Employer-Sponsored Retirement Plan,
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 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 the Funds.
If
you are not purchasing shares through an Employer-Sponsored Retirement
Plan, payment for shares must normally 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 following the receipt of the order. Payment may also,
at the discretion of each Fund, be made in the form of securities that are
permissible investments for the respective fund. 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 the
Funds. | ||||
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 |
If
you purchased shares through an Employer-Sponsored Retirement Plan, you
can make redemption requests through your Financial Intermediary in
accordance with the procedures applicable to your accounts. These
procedures may vary according to the type of account and the Financial
Intermediary involved, and customers should consult their Financial
Intermediary in this regard. Financial Intermediaries are responsible for
transmitting redemption orders and crediting their customers’ accounts
with redemption proceeds on a timely basis. Information relating to such
redemption services and charges to process a redemption of shares, if any,
should be obtained by customers from their Financial Intermediaries.
If
you did not purchase your shares through an Employer-Sponsored Retirement
Plan, you can make redemption requests through your Financial
Intermediary.
The
price of Class K Shares is based on the next calculation of each 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 a Fund uses to make payment of your redemption proceeds
(check or wire), your redemption proceeds typically will be sent one
business day after your request is submitted, but in any event, within
seven days.
Certain
Financial Intermediaries may charge a fee to process a redemption of
shares.
Each
Fund may reject an order to sell shares under certain circumstances.
| ||||
Selling shares directly held with BlackRock |
Methods
of Redeeming if You Did Not Purchase Your Shares Through an
Employer-Sponsored Retirement Plan
Redeem by Telephone: You may sell shares
held at BlackRock by telephone request. Call (800) 537-4942 for
details.
Each
Fund, its administrator and the Distributor will employ reasonable
procedures to confirm that instructions communicated by telephone are
genuine. Each Fund and its 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. Each Fund may refuse a telephone redemption request if it
believes it is advisable to do so.
|
How to Sell Shares (continued) | ||||||
Your Choices | Important Information for You to Know | |||||
Full
or Partial Redemption of Shares (continued) |
Selling
shares directly held with BlackRock (continued) |
During
periods of substantial economic or market change, telephone redemptions
may be difficult to complete. Please find alternative redemption methods
below.
Redeem by Internet: You may redeem in
your account, by logging onto the BlackRock website at www.blackrock.com.
Proceeds from Internet redemptions will be sent via wire to the bank
account of record.
Redeem in Writing: Redemption requests
may be sent in proper form to BlackRock, P.O. Box 534429, Pittsburgh,
Pennsylvania 15253-4429 or for overnight delivery, Attention: 534429, 500
Ross Street 154-0520, Pittsburgh, Pennsylvania 15262. Under certain
circumstances, a medallion signature guarantee will be required.
Payment of Redemption
Proceeds: Redemption proceeds may be paid by check or, if a
Fund has verified banking information on file, by wire transfer.
Payment by Check: BlackRock will
normally mail redemption proceeds within one business day 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.
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 of Redemption Proceeds 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. Each Fund reserves the right to
wire redemption proceeds within seven days after receiving a redemption
order if, in the judgment of the Fund, an earlier payment could adversely
affect the Fund. Shares can be redeemed by Federal wire transfer to a
single previously designated bank account. No charge for wiring redemption
payments with respect to Class K Shares is imposed by the Funds. You are
responsible for any additional charges imposed by your bank for wire
transfers.
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 Fund at the address on the back
cover of this prospectus.
*
* *
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 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”) |
Class
K Shares of each 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. Investors who currently own Class K Shares of
a Fund may make exchanges into Class K Shares of other BlackRock Funds
except for investors holding shares through certain client accounts at
Financial Intermediaries that are omnibus with a Fund and do not meet
applicable minimums. There is no required minimum amount with respect to
exchanges of Class K Shares. You may only exchange into Class K Shares of
a BlackRock Fund that is open to new investors or in which you have a
current account, if the BlackRock Fund is closed to new investors.
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) 537-4942 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) 537-4942. Each Fund has 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.
| ||||
Transfer Shares
to Another
Financial
Intermediary |
Transfer to a participating Financial Intermediary | You may transfer your Class K Shares of a Fund only to another Financial Intermediary that has entered into 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. Please contact your Financial Intermediary to accomplish the transfer of shares. | ||||
Transfer to a non-participating Financial Intermediary |
You
must either:
• Transfer
your Class K Shares to an account with a Fund; or
• Sell
your Class K Shares.
Please
contact your Financial Intermediary to accomplish the transfer of
shares. |
∎ |
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. |
Management Fee Rate (Net of Applicable Waivers) |
||||
BlackRock
LifePath® Dynamic
Retirement Fund |
0.06 | % | ||
BlackRock
LifePath® Dynamic 2025
Fund |
0.06 | % | ||
BlackRock
LifePath® Dynamic 2030
Fund |
0.06 | % | ||
BlackRock
LifePath® Dynamic 2035
Fund |
0.04 | % | ||
BlackRock
LifePath® Dynamic 2040
Fund |
0.04 | % | ||
BlackRock
LifePath® Dynamic 2045
Fund |
0.03 | % | ||
BlackRock
LifePath® Dynamic 2050
Fund |
0.02 | % | ||
BlackRock
LifePath® Dynamic 2055
Fund |
0.01 | % | ||
BlackRock
LifePath® Dynamic 2060
Fund |
0.00 | % | ||
BlackRock
LifePath® Dynamic 2065
Fund |
0.00 | % |
Portfolio Manager | Primary Role | Since | Title and Recent Biography | |||
Philip Green | 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. | 20161 | Managing Director of BlackRock, Inc. since 2006. | |||
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 2020; Vice President of BlackRock, Inc. from 2011 to 2014; Associate of BlackRock, Inc. from 2009 to 2010; Associate of Barclays Global Investors 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. | |||
Michael Pensky, CFA | Jointly and primarily responsible for the day-to-day management of the Fund’s portfolio, including setting the Fund’s overall investment strategy and overseeing the management of the Fund. | 2024 | Managing Director of BlackRock, Inc. since 2021; Director of BlackRock, Inc. from 2018 to 2020; Vice President of BlackRock, Inc. from 2016 to 2017; Associate of BlackRock, Inc. from 2012 to 2015. |
1 |
Mr. Green
has been managing the LifePath Dynamic 2060 Fund since its inception in
2017 and the LifePath Dynamic 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. |
BlackRock LifePath® Dynamic Retirement Fund | ||||||||||||||||||||||
Class K | ||||||||||||||||||||||
(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 |
$ | 9.13 | $ | 10.83 | $ | 11.63 | $ | 10.99 | $ | 9.65 | ||||||||||||
Net
investment income(a)
|
0.36 | 0.21 | 0.19 | 0.21 | 0.32 | |||||||||||||||||
Net
realized and unrealized gain (loss) |
0.78 | (1.79 | ) | 0.63 | 1.21 | 1.32 | ||||||||||||||||
Net
increase (decrease) from investment operations |
1.14 | (1.58 | ) | 0.82 | 1.42 | 1.64 | ||||||||||||||||
Distributions(b) |
||||||||||||||||||||||
From
net investment income |
(0.39 | ) | (0.02 | ) | (0.47 | ) | (0.25 | ) | (0.21 | ) | ||||||||||||
From
net realized gain |
(0.43 | ) | (0.04 | ) | (1.15 | ) | (0.53 | ) | (0.09 | ) | ||||||||||||
Return
of capital |
— | (0.06 | ) | — | — | — | ||||||||||||||||
Total
distributions |
(0.82 | ) | (0.12 | ) | (1.62 | ) | (0.78 | ) | (0.30 | ) | ||||||||||||
Net
asset value, end of year |
$ | 9.45 | $ | 9.13 | $ | 10.83 | $ | 11.63 | $ | 10.99 | ||||||||||||
Total
Return(c) |
||||||||||||||||||||||
Based
on net asset value |
12.61 | % | (14.64 | )% | 7.11 | % | 13.17 | % | 17.07 | % | ||||||||||||
Ratios
to Average Net Assets(d)
|
||||||||||||||||||||||
Total
expenses |
0.45 | % | 0.47 | % | 0.52 | % | 0.50 | % | 0.37 | % | ||||||||||||
Total
expenses after fees waived and/or reimbursed |
0.21 | % | 0.26 | % | 0.30 | % | 0.32 | % | 0.35 | % | ||||||||||||
Net
investment income |
3.78 | % | 2.17 | % | 1.61 | % | 1.88 | % | 2.99 | % | ||||||||||||
Supplemental
Data |
||||||||||||||||||||||
Net
assets, end of year (000) |
$ | 59,644 | $ | 43,138 | $ | 78,916 | $ | 74,809 | $ | 64,913 | ||||||||||||
Portfolio
turnover rate |
53 | %(e) | 7 | %(e) | 2 | %(e) | 43 | %(f) | 35 | %(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 8, 2020, the rate includes the
LifePath Dynamic Master Portfolio’s purchases and sales of the underlying
funds and the Underlying Master Portfolios. Beginning March 9, 2020,
the rate includes the LifePath Dynamic Fund’s purchases and sales of the
underlying funds and the Underlying Master Portfolios.
(g) Includes the
LifePath Dynamic Master Portfolio’s purchases and sales of the underlying
funds and Diversified Equity Master Portfolio, Advantage CoreAlpha Bond
Master Portfolio, International Tilts Master Portfolio and Master Total
Return Portfolio. |
BlackRock LifePath® Dynamic 2025 Fund | ||||||||||||||||||||||
Class K | ||||||||||||||||||||||
(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 |
$ | 11.92 | $ | 14.26 | $ | 14.57 | $ | 13.28 | $ | 11.69 | ||||||||||||
Net
investment income(a)
|
0.47 | 0.27 | 0.23 | 0.24 | 0.34 | |||||||||||||||||
Net
realized and unrealized gain (loss) |
1.10 | (2.42 | ) | 1.07 | 1.47 | 1.96 | ||||||||||||||||
Net
increase (decrease) from investment operations |
1.57 | (2.15 | ) | 1.30 | 1.71 | 2.30 | ||||||||||||||||
Distributions(b) |
||||||||||||||||||||||
From
net investment income |
(0.52 | ) | (0.06 | ) | (0.62 | ) | (0.29 | ) | (0.30 | ) | ||||||||||||
From
net realized gain |
— | (0.04 | ) | (0.99 | ) | (0.13 | ) | (0.41 | ) | |||||||||||||
Return
of capital |
— | (0.09 | ) | — | — | — | ||||||||||||||||
Total
distributions |
(0.52 | ) | (0.19 | ) | (1.61 | ) | (0.42 | ) | (0.71 | ) | ||||||||||||
Net
asset value, end of year |
$ | 12.97 | $ | 11.92 | $ | 14.26 | $ | 14.57 | $ | 13.28 | ||||||||||||
Total
Return(c) |
||||||||||||||||||||||
Based
on net asset value |
13.33 | % | (15.06 | )% | 9.05 | % | 13.17 | % | 19.72 | % | ||||||||||||
Ratios
to Average Net Assets(d)
|
||||||||||||||||||||||
Total
expenses |
0.45 | % | 0.50 | % | 0.55 | % | 0.52 | % | 0.37 | % | ||||||||||||
Total
expenses after fees waived and/or reimbursed |
0.21 | % | 0.25 | % | 0.29 | % | 0.31 | % | 0.35 | % | ||||||||||||
Net
investment income |
3.74 | % | 2.12 | % | 1.55 | % | 1.84 | % | 2.62 | % | ||||||||||||
Supplemental
Data |
||||||||||||||||||||||
Net
assets, end of year (000) |
$ | 64,494 | $ | 46,518 | $ | 75,927 | $ | 59,727 | $ | 34,027 | ||||||||||||
Portfolio
turnover rate |
49 | %(e) | 15 | %(e) | 6 | %(e) | 45 | %(f) | 35 | %(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 8, 2020, the rate includes the
LifePath Dynamic Master Portfolio’s purchases and sales of the underlying
funds and the Underlying Master Portfolios. Beginning March 9, 2020,
the rate includes the LifePath Dynamic Fund’s purchases and sales of the
underlying funds and the Underlying Master Portfolios.
(g) Includes the
LifePath Dynamic Master Portfolio’s purchases and sales of the underlying
funds and Diversified Equity Master Portfolio, Advantage CoreAlpha Bond
Master Portfolio, International Tilts Master Portfolio, Large Cap Index
Master Portfolio, Master Small Cap Index Series and Master Total Return
Portfolio. |
|
BlackRock LifePath® Dynamic 2030 Fund | ||||||||||||||||||||||
Class K | ||||||||||||||||||||||
(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 |
$ | 11.62 | $ | 14.06 | $ | 14.77 | $ | 13.62 | $ | 11.88 | ||||||||||||
Net
investment income(a)
|
0.43 | 0.25 | 0.24 | 0.23 | 0.34 | |||||||||||||||||
Net
realized and unrealized gain (loss) |
1.36 | (2.44 | ) | 1.46 | 1.52 | 2.29 | ||||||||||||||||
Net
increase (decrease) from investment operations |
1.79 | (2.19 | ) | 1.70 | 1.75 | 2.63 | ||||||||||||||||
Distributions(b) |
||||||||||||||||||||||
From
net investment income |
(0.44 | ) | (0.12 | ) | (0.79 | ) | (0.26 | ) | (0.33 | ) | ||||||||||||
From
net realized gain |
— | (0.06 | ) | (1.62 | ) | (0.34 | ) | (0.56 | ) | |||||||||||||
Return
of capital |
— | (0.07 | ) | — | — | — | ||||||||||||||||
Total
distributions |
(0.44 | ) | (0.25 | ) | (2.41 | ) | (0.60 | ) | (0.89 | ) | ||||||||||||
Net
asset value, end of year |
$ | 12.97 | $ | 11.62 | $ | 14.06 | $ | 14.77 | $ | 13.62 | ||||||||||||
Total
Return(c) |
||||||||||||||||||||||
Based
on net asset value |
15.61 | % | (15.63 | )% | 11.70 | % | 13.36 | % | 22.27 | % | ||||||||||||
Ratios
to Average Net Assets(d)
|
||||||||||||||||||||||
Total
expenses |
0.46 | % | 0.49 | % | 0.54 | % | 0.51 | % | 0.36 | % | ||||||||||||
Total
expenses after fees waived and/or reimbursed |
0.21 | % | 0.24 | % | 0.28 | % | 0.30 | % | 0.36 | % | ||||||||||||
Net
investment income |
3.46 | % | 2.08 | % | 1.54 | % | 1.73 | % | 2.52 | % | ||||||||||||
Supplemental
Data |
||||||||||||||||||||||
Net
assets, end of year (000) |
$ | 90,777 | $ | 70,367 | $ | 100,750 | $ | 77,510 | $ | 56,168 | ||||||||||||
Portfolio
turnover rate |
33 | %(e) | 11 | %(e) | 5 | %(e) | 38 | %(f) | 32 | %(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 8, 2020, the rate includes the
LifePath Dynamic Master Portfolio’s purchases and sales of the underlying
funds and the Underlying Master Portfolios. Beginning March 9, 2020,
the rate includes the LifePath Dynamic Fund’s purchases and sales of the
underlying funds and the Underlying Master Portfolios.
(g) Includes the
LifePath Dynamic Master Portfolio’s purchases and sales of the underlying
funds and Diversified Equity Master Portfolio, Advantage CoreAlpha Bond
Master Portfolio, International Tilts Master Portfolio and Master Total
Return Portfolio. |
|
BlackRock LifePath® Dynamic 2035 Fund | ||||||||||||||||||||||
Class K | ||||||||||||||||||||||
(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 |
$ | 13.42 | $ | 16.38 | $ | 16.15 | $ | 14.53 | $ | 12.36 | ||||||||||||
Net
investment income(a)
|
0.48 | 0.28 | 0.25 | 0.25 | 0.37 | |||||||||||||||||
Net
realized and unrealized gain (loss) |
1.85 | (2.94 | ) | 1.99 | 1.74 | 2.58 | ||||||||||||||||
Net
increase (decrease) from investment operations |
2.33 | (2.66 | ) | 2.24 | 1.99 | 2.95 | ||||||||||||||||
Distributions(b) |
||||||||||||||||||||||
From
net investment income |
(0.51 | ) | (0.12 | ) | (0.90 | ) | (0.25 | ) | (0.33 | ) | ||||||||||||
From
net realized gain |
— | (0.09 | ) | (1.11 | ) | (0.12 | ) | (0.45 | ) | |||||||||||||
Return
of capital |
— | (0.09 | ) | — | — | — | ||||||||||||||||
Total
distributions |
(0.51 | ) | (0.30 | ) | (2.01 | ) | (0.37 | ) | (0.78 | ) | ||||||||||||
Net
asset value, end of year |
$ | 15.24 | $ | 13.42 | $ | 16.38 | $ | 16.15 | $ | 14.53 | ||||||||||||
Total
Return(c) |
||||||||||||||||||||||
Based
on net asset value |
17.53 | % | (16.32 | )% | 13.96 | % | 14.14 | % | 23.92 | % | ||||||||||||
Ratios
to Average Net Assets(d)
|
||||||||||||||||||||||
Total
expenses |
0.48 | % | 0.51 | % | 0.57 | % | 0.54 | % | 0.36 | % | ||||||||||||
Total
expenses after fees waived and/or reimbursed |
0.23 | % | 0.23 | % | 0.27 | % | 0.30 | % | 0.35 | % | ||||||||||||
Net
investment income |
3.32 | % | 1.97 | % | 1.47 | % | 1.77 | % | 2.63 | % | ||||||||||||
Supplemental
Data |
||||||||||||||||||||||
Net
assets, end of year (000) |
$ | 102,494 | $ | 68,520 | $ | 95,154 | $ | 67,968 | $ | 27,720 | ||||||||||||
Portfolio
turnover rate |
19 | %(e) | 14 | %(e) | 3 | %(e) | 29 | %(f) | 42 | %(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 8, 2020, the rate includes the
LifePath Dynamic Master Portfolio’s purchases and sales of the underlying
funds and the Underlying Master Portfolios. Beginning March 9, 2020,
the rate includes the LifePath Dynamic Fund’s purchases and sales of the
underlying funds and the Underlying Master Portfolios.
(g) Includes the
LifePath Dynamic Master Portfolio’s purchases and sales of the underlying
funds and Diversified Equity Master Portfolio, Advantage CoreAlpha Bond
Master Portfolio, International Tilts Master Portfolio, Large Cap Index
Master Portfolio, Master Small Cap Index Series and Master Total Return
Portfolio. |
|
BlackRock LifePath® Dynamic 2040 Fund | ||||||||||||||||||||||
Class K | ||||||||||||||||||||||
(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 |
$ | 14.76 | $ | 18.16 | $ | 18.85 | $ | 17.32 | $ | 14.70 | ||||||||||||
Net
investment income(a)
|
0.49 | 0.29 | 0.29 | 0.26 | 0.41 | |||||||||||||||||
Net
realized and unrealized gain (loss) |
2.37 | (3.35 | ) | 2.75 | 2.11 | 3.38 | ||||||||||||||||
Net
increase (decrease) from investment operations |
2.86 | (3.06 | ) | 3.04 | 2.37 | 3.79 | ||||||||||||||||
Distributions(b) |
||||||||||||||||||||||
From
net investment income |
(0.60 | ) | (0.15 | ) | (1.34 | ) | (0.28 | ) | (0.40 | ) | ||||||||||||
From
net realized gain |
(0.24 | ) | (0.11 | ) | (2.39 | ) | (0.56 | ) | (0.77 | ) | ||||||||||||
Return
of capital |
— | (0.08 | ) | — | — | — | ||||||||||||||||
Total
distributions |
(0.84 | ) | (0.34 | ) | (3.73 | ) | (0.84 | ) | (1.17 | ) | ||||||||||||
Net
asset value, end of year |
$ | 16.78 | $ | 14.76 | $ | 18.16 | $ | 18.85 | $ | 17.32 | ||||||||||||
Total
Return(c) |
||||||||||||||||||||||
Based
on net asset value |
19.55 | % | (16.90 | )% | 16.38 | % | 14.23 | % | 25.96 | % | ||||||||||||
Ratios
to Average Net Assets(d)
|
||||||||||||||||||||||
Total
expenses |
0.50 | % | 0.51 | % | 0.56 | % | 0.53 | % | 0.35 | % | ||||||||||||
Total
expenses after fees waived and/or reimbursed |
0.24 | % | 0.22 | % | 0.27 | % | 0.29 | % | 0.35 | % | ||||||||||||
Net
investment income |
3.10 | % | 1.87 | % | 1.44 | % | 1.58 | % | 2.42 | % | ||||||||||||
Supplemental
Data |
||||||||||||||||||||||
Net
assets, end of year (000) |
$ | 83,738 | $ | 60,687 | $ | 85,150 | $ | 57,407 | $ | 47,987 | ||||||||||||
Portfolio
turnover rate |
11 | %(e) | 13 | %(e) | 6 | %(e) | 39 | %(f) | 35 | %(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 8, 2020, the rate includes the
LifePath Dynamic Master Portfolio’s purchases and sales of the underlying
funds and the Underlying Master Portfolios. Beginning March 9, 2020,
the rate includes the LifePath Dynamic Fund’s purchases and sales of the
underlying funds and the Underlying Master Portfolios.
(g) Includes the
LifePath Dynamic Master Portfolio’s purchases and sales of the underlying
funds and Diversified Equity Master Portfolio, Advantage CoreAlpha Bond
Master Portfolio, International Tilts Master Portfolio, Large Cap Index
Master Portfolio, Master Small Cap Index Series and Master Total Return
Portfolio. |
|
BlackRock LifePath® Dynamic 2045 Fund | ||||||||||||||||||||||
Class K | ||||||||||||||||||||||
(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 |
$ | 14.53 | $ | 18.05 | $ | 17.25 | $ | 15.48 | $ | 12.88 | ||||||||||||
Net
investment income(a)
|
0.48 | 0.26 | 0.26 | 0.26 | 0.39 | |||||||||||||||||
Net
realized and unrealized gain (loss) |
2.57 | (3.39 | ) | 2.81 | 1.91 | 3.03 | ||||||||||||||||
Net
increase (decrease) from investment operations |
3.05 | (3.13 | ) | 3.07 | 2.17 | 3.42 | ||||||||||||||||
Distributions(b) |
||||||||||||||||||||||
From
net investment income |
(0.56 | ) | (0.15 | ) | (1.19 | ) | (0.25 | ) | (0.34 | ) | ||||||||||||
From
net realized gain |
— | (0.15 | ) | (1.08 | ) | (0.15 | ) | (0.48 | ) | |||||||||||||
Return
of capital |
— | (0.09 | ) | — | — | — | ||||||||||||||||
Total
distributions |
(0.56 | ) | (0.39 | ) | (2.27 | ) | (0.40 | ) | (0.82 | ) | ||||||||||||
Net
asset value, end of year |
$ | 17.02 | $ | 14.53 | $ | 18.05 | $ | 17.25 | $ | 15.48 | ||||||||||||
Total
Return(c) |
||||||||||||||||||||||
Based
on net asset value |
21.22 | % | (17.44 | )% | 17.93 | % | 14.54 | % | 26.67 | % | ||||||||||||
Ratios
to Average Net Assets(d)
|
||||||||||||||||||||||
Total
expenses |
0.52 | % | 0.53 | % | 0.59 | % | 0.57 | % | 0.37 | % | ||||||||||||
Total
expenses after fees waived and/or reimbursed |
0.26 | % | 0.22 | % | 0.26 | % | 0.29 | % | 0.34 | % | ||||||||||||
Net
investment income |
3.02 | % | 1.68 | % | 1.35 | % | 1.73 | % | 2.60 | % | ||||||||||||
Supplemental
Data |
||||||||||||||||||||||
Net
assets, end of year (000) |
$ | 87,416 | $ | 60,100 | $ | 82,853 | $ | 56,683 | $ | 20,936 | ||||||||||||
Portfolio
turnover rate |
2 | %(e) | 16 | %(e) | — | %(e)(f) | 26 | %(g) | 49 | %(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 the
purchases and sales of the underlying funds and the Underlying Master
Portfolios.
(f) Rounds to less
than 1%.
(g) From
January 1, 2020 through March 8, 2020, the rate includes the
LifePath Dynamic Master Portfolio’s purchases and sales of the underlying
funds and the Underlying Master Portfolios. Beginning March 9, 2020,
the rate includes the LifePath Dynamic Fund’s purchases and sales of the
underlying funds and the Underlying Master Portfolios.
(h) Includes the
LifePath Dynamic Master Portfolio’s purchases and sales of the underlying
funds and Diversified Equity Master Portfolio, Advantage CoreAlpha Bond
Master Portfolio, International Tilts Master Portfolio, Large Cap Index
Master Portfolio, Master Small Cap Index Series and Master Total Return
Portfolio. |
|
BlackRock LifePath® Dynamic 2050 Fund | ||||||||||||||||||||||
Class K | ||||||||||||||||||||||
(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 |
$ | 18.37 | $ | 23.10 | $ | 22.86 | $ | 20.46 | $ | 17.18 | ||||||||||||
Net
investment income(a)
|
0.57 | 0.32 | 0.33 | 0.29 | 0.50 | |||||||||||||||||
Net
realized and unrealized gain (loss) |
3.49 | (4.56 | ) | 3.83 | 2.68 | 4.06 | ||||||||||||||||
Net
increase (decrease) from investment operations |
4.06 | (4.24 | ) | 4.16 | 2.97 | 4.56 | ||||||||||||||||
Distributions(b) |
||||||||||||||||||||||
From
net investment income |
(0.68 | ) | (0.23 | ) | (1.73 | ) | (0.31 | ) | (0.46 | ) | ||||||||||||
From
net realized gain |
— | (0.17 | ) | (2.19 | ) | (0.26 | ) | (0.82 | ) | |||||||||||||
Return
of capital |
— | (0.09 | ) | — | — | — | ||||||||||||||||
Total
distributions |
(0.68 | ) | (0.49 | ) | (3.92 | ) | (0.57 | ) | (1.28 | ) | ||||||||||||
Net
asset value, end of year |
$ | 21.75 | $ | 18.37 | $ | 23.10 | $ | 22.86 | $ | 20.46 | ||||||||||||
Total
Return(c) |
||||||||||||||||||||||
Based
on net asset value |
22.28 | % | (18.47 | )% | 18.45 | % | 15.07 | % | 26.67 | % | ||||||||||||
Ratios
to Average Net Assets(d)
|
||||||||||||||||||||||
Total
expenses |
0.53 | % | 0.53 | % | 0.59 | % | 0.55 | % | 0.36 | % | ||||||||||||
Total
expenses after fees waived and/or reimbursed |
0.25 | % | 0.24 | % | 0.29 | % | 0.30 | % | 0.35 | % | ||||||||||||
Net
investment income |
2.86 | % | 1.62 | % | 1.34 | % | 1.47 | % | 2.54 | % | ||||||||||||
Supplemental
Data |
||||||||||||||||||||||
Net
assets, end of year (000) |
$ | 59,474 | $ | 42,971 | $ | 66,065 | $ | 35,574 | $ | 16,383 | ||||||||||||
Portfolio
turnover rate |
7 | %(e) | 16 | %(e) | 1 | %(e) | 31 | %(f) | 42 | %(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 8, 2020, the rate includes the
LifePath Dynamic Master Portfolio’s purchases and sales of the underlying
funds and the Underlying Master Portfolios. Beginning March 9, 2020,
the rate includes the LifePath Dynamic Fund’s purchases and sales of the
underlying funds and the Underlying Master Portfolios.
(g) Includes the
LifePath Dynamic Master Portfolio’s purchases and sales of the underlying
funds and Diversified Equity Master Portfolio, Advantage CoreAlpha Bond
Master Portfolio, International Tilts Master Portfolio, Large Cap Index
Master Portfolio, Master Small Cap Index Series and Master Total Return
Portfolio. |
|
BlackRock LifePath® Dynamic 2055 Fund | ||||||||||||||||||||||
Class K | ||||||||||||||||||||||
(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 |
$ | 15.27 | $ | 19.21 | $ | 18.19 | $ | 16.12 | $ | 13.36 | ||||||||||||
Net
investment income(a)
|
0.49 | 0.25 | 0.26 | 0.25 | 0.40 | |||||||||||||||||
Net
realized and unrealized gain (loss) |
2.90 | (3.79 | ) | 3.11 | 2.20 | 3.16 | ||||||||||||||||
Net
increase (decrease) from investment operations |
3.39 | (3.54 | ) | 3.37 | 2.45 | 3.56 | ||||||||||||||||
Distributions(b) |
||||||||||||||||||||||
From
net investment income |
(0.57 | ) | (0.16 | ) | (1.28 | ) | (0.25 | ) | (0.34 | ) | ||||||||||||
From
net realized gain |
— | (0.17 | ) | (1.07 | ) | (0.13 | ) | (0.46 | ) | |||||||||||||
Return
of capital |
— | (0.07 | ) | — | — | — | ||||||||||||||||
Total
distributions |
(0.57 | ) | (0.40 | ) | (2.35 | ) | (0.38 | ) | (0.80 | ) | ||||||||||||
Net
asset value, end of year |
$ | 18.09 | $ | 15.27 | $ | 19.21 | $ | 18.19 | $ | 16.12 | ||||||||||||
Total
Return(c) |
||||||||||||||||||||||
Based
on net asset value |
22.38 | % | (18.49 | )% | 18.72 | % | 15.69 | % | 26.75 | % | ||||||||||||
Ratios
to Average Net Assets(d)
|
||||||||||||||||||||||
Total
expenses |
0.54 | % | 0.54 | % | 0.62 | % | 0.60 | % | 0.39 | % | ||||||||||||
Total
expenses after fees waived and/or reimbursed |
0.25 | % | 0.25 | % | 0.29 | % | 0.30 | % | 0.34 | % | ||||||||||||
Net
investment income |
2.91 | % | 1.57 | % | 1.28 | % | 1.58 | % | 2.58 | % | ||||||||||||
Supplemental
Data |
||||||||||||||||||||||
Net
assets, end of year (000) |
$ | 64,423 | $ | 37,439 | $ | 53,041 | $ | 30,189 | $ | 7,240 | ||||||||||||
Portfolio
turnover rate |
3 | %(e) | 27 | %(e) | 2 | %(e) | 23 | %(f) | 54 | %(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 8, 2020, the rate includes the
LifePath Dynamic Master Portfolio’s purchases and sales of the underlying
funds and the Underlying Master Portfolios. Beginning March 9, 2020,
the rate includes the LifePath Dynamic Fund’s purchases and sales of the
underlying funds and the Underlying Master Portfolios.
(g) Includes the
LifePath Dynamic Master Portfolio’s purchases and sales of the underlying
funds and Diversified Equity Master Portfolio, Advantage CoreAlpha Bond
Master Portfolio, International Tilts Master Portfolio, Large Cap Index
Master Portfolio, Master Small Cap Index Series and Master Total Return
Portfolio. |
|
BlackRock LifePath® Dynamic 2060 Fund | ||||||||||||||||||||||
Class K | ||||||||||||||||||||||
(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 |
$ | 11.13 | $ | 13.95 | $ | 12.87 | $ | 11.48 | $ | 9.34 | ||||||||||||
Net
investment income(a)
|
0.36 | 0.18 | 0.19 | 0.18 | 0.26 | |||||||||||||||||
Net
realized and unrealized gain (loss) |
2.14 | (2.75 | ) | 2.17 | 1.45 | 2.23 | ||||||||||||||||
Net
increase (decrease) from investment operations |
2.50 | (2.57 | ) | 2.36 | 1.63 | 2.49 | ||||||||||||||||
Distributions(b) |
||||||||||||||||||||||
From
net investment income |
(0.40 | ) | (0.11 | ) | (0.76 | ) | (0.19 | ) | (0.23 | ) | ||||||||||||
From
net realized gain |
— | (0.09 | ) | (0.52 | ) | (0.05 | ) | (0.12 | ) | |||||||||||||
Return
of capital |
— | (0.05 | ) | — | — | — | ||||||||||||||||
Total
distributions |
(0.40 | ) | (0.25 | ) | (1.28 | ) | (0.24 | ) | (0.35 | ) | ||||||||||||
Net
asset value, end of year |
$ | 13.23 | $ | 11.13 | $ | 13.95 | $ | 12.87 | $ | 11.48 | ||||||||||||
Total
Return(c) |
||||||||||||||||||||||
Based
on net asset value |
22.62 | % | (18.51 | )% | 18.43 | % | 14.62 | % | 26.74 | %(d) | ||||||||||||
Ratios
to Average Net Assets(e)
|
||||||||||||||||||||||
Total
expenses |
0.63 | % | 0.65 | % | 0.80 | % | 0.87 | % | 0.77 | % | ||||||||||||
Total
expenses after fees waived and/or reimbursed |
0.26 | % | 0.24 | % | 0.27 | % | 0.29 | % | 0.36 | % | ||||||||||||
Net
investment income |
2.92 | % | 1.56 | % | 1.34 | % | 1.62 | % | 2.40 | % | ||||||||||||
Supplemental
Data |
||||||||||||||||||||||
Net
assets, end of year (000) |
$ | 20,630 | $ | 11,524 | $ | 17,030 | $ | 8,747 | $ | 3,384 | ||||||||||||
Portfolio
turnover rate |
3 | %(f) | 37 | %(f) | 5 | %(f) | 18 | %(g) | 44 | %(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) Includes payment
received from an affiliate, which impacted the Fund’s total return.
Excluding the payment from an affiliate, the Fund’s total return is
26.64%.
(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 8, 2020, the rate includes the
LifePath Dynamic Master Portfolio’s purchases and sales of the underlying
funds and the Underlying Master Portfolios. Beginning March 9, 2020,
the rate includes the LifePath Dynamic Fund’s purchases and sales of the
underlying funds and the Underlying Master Portfolios.
(h) Includes the
LifePath Dynamic Master Portfolio’s purchases and sales of the underlying
funds and Diversified Equity Master Portfolio, Advantage CoreAlpha Bond
Master Portfolio, International Tilts Master Portfolio and Master Total
Return Portfolio. |
|
BlackRock LifePath® Dynamic 2065 Fund | ||||||||||||||||||||||
Class K | ||||||||||||||||||||||
(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 |
$ | 10.08 | $ | 12.67 | $ | 11.74 | $ | 10.48 | $ | 10.00 | ||||||||||||
Net
investment income(b)
|
0.33 | 0.18 | 0.18 | 0.16 | 0.08 | |||||||||||||||||
Net
realized and unrealized gain (loss) |
1.95 | (2.49 | ) | 2.01 | 1.29 | 0.47 | ||||||||||||||||
Net
increase (decrease) from investment operations |
2.28 | (2.31 | ) | 2.19 | 1.45 | 0.55 | ||||||||||||||||
Distributions(c) |
||||||||||||||||||||||
From
net investment income |
(0.33 | ) | (0.13 | ) | (0.81 | ) | (0.19 | ) | (0.07 | ) | ||||||||||||
From
net realized gain |
— | (0.10 | ) | (0.45 | ) | — | — | |||||||||||||||
Return
of capital |
— | (0.05 | ) | — | — | — | ||||||||||||||||
Total
distributions |
(0.33 | ) | (0.28 | ) | (1.26 | ) | (0.19 | ) | (0.07 | ) | ||||||||||||
Net
asset value, end of period |
$ | 12.03 | $ | 10.08 | $ | 12.67 | $ | 11.74 | $ | 10.48 | ||||||||||||
Total
Return(d) |
||||||||||||||||||||||
Based
on net asset value |
22.75 | % | (18.37 | )% | 18.72 | % | 14.15 | % | 5.49 | %(e) | ||||||||||||
Ratios
to Average Net Assets(f)
|
||||||||||||||||||||||
Total
expenses |
0.84 | % | 0.95 | % | 1.22 | % | 0.99 | % | 0.63 | %(g)(h) | ||||||||||||
Total
expenses after fees waived and/or reimbursed |
0.25 | % | 0.22 | % | 0.28 | % | 0.30 | % | 0.36 | %(g) | ||||||||||||
Net
investment income |
2.94 | % | 1.72 | % | 1.35 | % | 1.59 | % | 4.43 | %(g) | ||||||||||||
Supplemental
Data |
||||||||||||||||||||||
Net
assets, end of period (000) |
$ | 7,335 | $ | 3,655 | $ | 4,242 | $ | 2,969 | $ | 2,514 | ||||||||||||
Portfolio
turnover rate |
4 | %(i) | 26 | %(i) | 8 | %(i) | 45 | %(j) | 3 | %(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 fees were not
annualized in the calculation of expense ratios. If this expense was
annualized, the total expenses would have been 1.94%.
(i) Includes the
purchases and sales of the underlying funds and the Underlying Master
Portfolios.
(j) From
January 1, 2020 through March 8, 2020, the rate includes the
LifePath Dynamic Master Portfolio’s purchases and sales of the underlying
funds and the Underlying Master Portfolios. Beginning March 9, 2020,
the rate includes the LifePath Dynamic Fund’s purchases and sales of the
underlying funds and the Underlying Master Portfolios.
(k) Includes the
LifePath Dynamic Master Portfolio’s purchases and sales of the underlying
funds and Diversified Equity Master Portfolio, Advantage CoreAlpha Bond
Master Portfolio, International Tilts Master Portfolio and Master Total
Return Portfolio. |
|
∎ |
Access
the BlackRock website at http://www.blackrock.com/edelivery;
and |
∎ |
Log
into your account. |
PRO-LP-K-0424 |