2022 Prospectus |
• | iShares
Yield Optimized Bond ETF | BYLD | NYSE ARCA |
|
S-1 |
|
1 |
|
2 |
|
17 |
|
27 |
|
27 |
|
31 |
|
34 |
|
43 |
|
44 |
|
45 |
|
45 |
Ticker: BYLD | Stock Exchange: NYSE Arca |
(ongoing expenses that you pay each year as a percentage of the value of your investments) | ||||||||||||
Management Fees |
Distribution
and Service (12b-1) Fees |
Other Expenses1 |
Acquired
Fund Fees and Expenses |
Total
Annual Fund Operating Expenses |
Fee Waiver | Total
Annual Fund Operating Expenses After Fee Waiver | ||||||
( |
1 |
1 Year | 3 Years | 5 Years | 10 Years | |||
$ |
$ |
$ |
$ |
One Year | Five Years | Since
Fund Inception | |||
(Inception
Date: |
|||||
Return Before Taxes | - |
||||
Return After Taxes on Distributions1 | - |
||||
Return After Taxes on Distributions and Sale of Fund Shares1 | - |
||||
Morningstar U.S. Bond Market Yield-Optimized Index (Index returns do not reflect deductions for fees, expenses, or taxes) | - |
1 |
■ | High yield securities may be issued by less creditworthy issuers. Issuers of high yield securities 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 high yield securities holders, leaving few or no assets available to repay high yield securities holders. |
■ | Prices of high yield securities 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 high yield securities than on other higher rated fixed-income securities. The credit rating of a high yield security does not necessarily address its market value risk. Ratings and market value may change from time to time, positively or negatively, to reflect new developments regarding the issuer. |
■ | Issuers of high yield securities 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. |
■ | High yield securities frequently have redemption features that permit an issuer to repurchase the security from the Fund or an Underlying Fund before it matures. If the issuer redeems high yield securities held by the Fund or an Underlying Fund, the Fund or an Underlying Fund may have to invest the proceeds in bonds with lower yields and may lose income. |
■ | High yield securities may be less liquid than higher rated fixed-income securities, even under normal economic conditions. There are fewer dealers in the high yield securities market, and there may be significant differences in the prices quoted for high yield securities by the dealers. Because high yield securities may be less liquid than higher rated fixed-income securities, judgment may play a greater role in valuing certain of the Fund's securities than is the case with securities trading in a more liquid market. |
■ | The Fund or an Underlying Fund may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with a defaulting issuer. |
■ | General Impact. This outbreak has resulted in travel restrictions, closed international borders, enhanced health screenings at ports of entry and elsewhere, disruption of, and delays in, healthcare service preparation and delivery, prolonged quarantines, cancellations, supply chain disruptions, lower consumer demand, temporary and permanent closures of stores, restaurants and other commercial establishments, layoffs, defaults and other significant economic impacts, as well as general concern and uncertainty. |
■ | Market Volatility. The outbreak has also resulted in extreme volatility, severe losses, and disruptions in markets which can adversely impact the Fund and its investments, including impairing hedging activity to the extent the Fund engages in such activity, as expected correlations between related markets or instruments may no longer apply. In addition, to the extent the Fund invests in short-term instruments that have negative yields, the Fund’s value may be impaired as a result. Certain issuers of equity securities have cancelled or announced the suspension of dividends. The outbreak has, and may continue to, negatively affect the credit ratings of some fixed-income securities and their issuers. |
■ | Market Closures. Certain local markets have been or may be subject to closures, and there can be no assurance that trading will continue in any local markets in which the Fund or an Underlying Fund may invest, when any resumption of trading will occur or, once such markets resume trading, whether they will face further |
closures. Any suspension of trading in markets in which the Fund or an Underlying Fund invests will have an impact on the Fund and its investments and will impact the Fund’s or an Underlying Fund's ability to purchase or sell securities in such markets. | |
■ | Operational Risk. The outbreak could also impair the information technology and other operational systems upon which the Fund’s service providers, including BFA, rely, and could otherwise disrupt the ability of employees of the Fund's service providers to perform critical tasks relating to the Fund, for example, due to the service providers’ employees performing tasks in alternate locations than under normal operating conditions or the illness of certain employees of the Fund's service providers. |
■ | Governmental Interventions. Governmental and quasi-governmental authorities and regulators throughout the world have responded to the outbreak and the resulting economic disruptions with a variety of fiscal and monetary policy changes, including direct capital infusions into companies and other issuers, new monetary policy tools, and lower interest rates. An unexpected or sudden reversal of these policies, or the ineffectiveness of such policies, is likely to increase market volatility, which could adversely affect the Fund’s investments. |
■ | Pre-Existing Conditions. Public health crises caused by the outbreak may exacerbate other pre-existing political, social and economic risks in certain countries or globally, which could adversely affect the Fund and its investments and could result in increased premiums or discounts to the Fund's NAV. |
Underlying Funds | |
iShares 1-5 Year Investment Grade Corporate Bond ETF | 8.67% |
iShares 7-10 Year Treasury Bond ETF | 29.73% |
iShares 10+ Year Investment Grade Corporate Bond ETF | 1.36% |
iShares iBoxx $ High Yield Corporate Bond ETF | 20.09% |
Underlying Funds | |
iShares J.P. Morgan USD Emerging Markets Bond ETF | 9.89% |
iShares MBS ETF | 30.22% |
Note: The allocation percentages may not add up to, or may appear to exceed, 100% due to rounding. | |
Bloomberg® is a trademark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). The “Bloomberg U.S. MBS Index” is a trademark of Bloomberg and its licensors and has been licensed for use for certain purposes by BFA or its affiliates. | |
ICE®,“ICE BofA 1-5 Year US Corporate Index,” “ICE U.S. Treasury 7-10 Year Bond Index,” and “ICE BofA 10+ Year US Corporate Index” are trademarks of ICE Data Indices, LLC or its affiliates (“IDI”) and have been licensed for use for certain purposes by BFA or its affiliates. BofA® is a registered trademark of Bank of America Corporation licensed by Bank of America Corporation and its affiliates (“BofA”), and may not be used without BofA’s prior written approval. | |
“J.P. Morgan” and “J.P. Morgan EMBI® Global Core Index” are trademarks of JPMorgan Chase & Co. and have been licensed for use for certain purposes by BFA or its affiliates. | |
Markit® and iBoxx® are registered trademarks of Markit Group Limited and Markit Indices Limited, respectively, and have been licensed for use for certain purposes by BFA or its affiliates. |
iShares Yield Optimized Bond ETF | |||||||||
Year
Ended 10/31/21 |
Year
Ended 10/31/20 |
Year
Ended 10/31/19 |
Year
Ended 10/31/18 |
Year
Ended 10/31/17 | |||||
Net asset value, beginning of year | $25.63 | $25.60 | $23.77 | $25.08 | $25.05 | ||||
Net investment income(a) | 0.63 | 0.80 | 0.92 | 0.91 | 0.82 | ||||
Net realized and unrealized gain (loss)(b) | (0.51) | 0.04 | 1.94 | (1.33) | 0.04 | ||||
Net increase (decrease) from investment operations | 0.12 | 0.84 | 2.86 | (0.42) | 0.86 | ||||
Distributions(c) | |||||||||
From net investment income | (0.65) | (0.81) | (1.03) | (0.89) | (0.83) | ||||
From net realized gain | (0.07) | — | — | — | — | ||||
Total distributions | (0.72) | (0.81) | (1.03) | (0.89) | (0.83) | ||||
Net asset value, end of year | $25.03 | $25.63 | $25.60 | $23.77 | $25.08 | ||||
Total Return(d) | |||||||||
Based on net asset value | 0.47% | 3.33% | 12.31% | (1.70)% | 3.53% | ||||
Ratios to Average Net Assets | |||||||||
Total expenses(e) | 0.28% | 0.28% | 0.28% | 0.28% | 0.28% | ||||
Total expenses after fees waived(e) | 0.00%(f) | 0.00%(f) | 0.00% | 0.00%(f) | 0.00%(f) | ||||
Net investment income | 2.49% | 3.12% | 3.69% | 3.75% | 3.30% | ||||
Supplemental Data | |||||||||
Net assets, end of year (000) | $148,924 | $190,935 | $147,173 | $34,462 | $27,593 | ||||
Portfolio turnover rate(g)(h) | 57% | 118% | 58% | 48% | 27% | ||||
(a) Based on average shares outstanding. | |||||||||
(b) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. | |||||||||
(c) Distributions for annual periods determined in accordance with U.S. federal income tax regulations. | |||||||||
(d) Where applicable, assumes the reinvestment of distributions. | |||||||||
(e) The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying funds in which the Fund is invested (“acquired fund fees and expenses”). This ratio does not include these acquired fund fees and expenses. | |||||||||
(f) Rounds to less than 0.01%. | |||||||||
(g) Portfolio turnover rate excludes in-kind transactions. | |||||||||
(h) Portfolio turnover rate excludes the portfolio activity of the underlying funds in which the Fund is invested. See each underlying fund's financial highlights for its respective portfolio turnover rates. |
Call: | 1-800-iShares
or 1-800-474-2737 (toll free) Monday through Friday, 8:30 a.m. to 6:30 p.m. (Eastern time) |
Email: | [email protected] |
Write: | c/o
BlackRock Investments, LLC 1 University Square Drive, Princeton, NJ 08540 |