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2023 Prospectus |
• | BlackRock Intermediate Muni Income Bond ETF | INMU | NYSE ARCA |
Ticker: INMU | Stock Exchange: NYSE Arca |
Annual Fund Operating Expenses (ongoing expenses that you pay each year as a percentage of the value of your investments) | ||||||||||||
Management
Fees1,2 |
Distribution
and Service (12b-1) Fees |
Other
Expenses3 |
Acquired
Fund Fees and Expenses1,4 |
Total
Annual Fund Operating Expenses4 |
Fee Waiver1,2 | Total
Annual Fund Operating Expenses After Fee Waiver1,2 | ||||||
0.40% | None | 0.00% | 0.02% | 0.42% | (0.12)% | 0.30% |
1 | As described in the “Management” section of the Fund's prospectus beginning on page 18, BFA has contractually agreed to waive a portion of its management fees in an amount equal to the aggregate Acquired Fund Fees and Expenses, if any, attributable to investments by the Fund in other funds advised by BFA or its affiliates through June 30, 2025. The agreement may be terminated upon 90 days' notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund. |
2 | As described in the “Management” section of the Fund’s prospectus beginning on page 18, BFA has contractually agreed to waive 0.10% of its management fee payable, through June 30, 2025. The agreement may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund. |
3 | The amount rounded to 0.00%. |
4 | The Total Annual Fund Operating Expenses do not correlate to the ratio of expenses to |
average net assets given in the Fund's most recent annual report, which do not include Acquired Fund Fees and Expenses. |
1 Year | 3 Years | 5 Years | 10 Years | |||||
$31 | $123 | $223 | $518 |
One Year | Since Inception | ||
(Inception Date: 3/16/2021) | |||
Return Before Taxes | -6.69% | -2.22% | |
Return After Taxes on Distributions1 | -6.70% | -2.29% | |
Return After Taxes on Distributions and Sale of Fund Shares1 | -3.25% | -1.36% | |
Bloomberg Municipal 3-10 Year Index2 (Index returns do not reflect deductions for fees, expenses or taxes) | -5.50% | -2.73% | |
Bloomberg Custom Blend Benchmark3 (Index returns do not reflect deductions for fees, expenses or taxes) | -6.03% | -2.67% |
1 | After-tax returns in the table above are calculated using the historical highest individual U.S. federal marginal income tax rates and do not reflect the impact of state or local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown, and after-tax returns shown are not relevant to tax-exempt investors or investors who hold shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts (“IRAs”). Fund returns after taxes on distributions and sales of Fund shares are calculated assuming that an investor has sufficient capital gains of the same character from other investments to offset any capital losses from the sale of Fund shares. As a result, Fund returns after taxes on distributions and sales of Fund shares may exceed Fund returns before taxes and/or returns after taxes on distributions. |
2 | The Bloomberg Municipal 3-10 Year Index is an index that covers the USD-denominated long-term tax exempt bond market. It includes general obligation and revenue bonds with maturities of more than three years and less than ten years. |
3 | The Bloomberg Custom Blend Benchmark is comprised of 90% Bloomberg 1-15 Year Municipal Bond Index and 10% Bloomberg Municipal High Yield 1-15 Year Index. |
■ | Credit Quality of Issuers — based on bond ratings and other factors, including economic and financial conditions. |
■ | Yield Analysis — takes into account factors such as the different yields available on different types of obligations and the shape of the yield curve (longer-term obligations typically have higher yields). |
■ | Maturity Analysis — the weighted average maturity of the portfolio will be maintained within a desirable range as determined from time to time. Factors considered include portfolio activity, maturity of the supply of available bonds and the shape of the yield curve. Maturity of a debt security refers to the date upon which debt securities are due to be repaid, that is, the date when the issuer generally must pay back the face amount of the security. |
■ | Duration Analysis — the average portfolio duration of the portfolio will generally be maintained within a range as determined from time to time. Duration is a measure, expressed in years, of the price sensitivity of a bond or a portfolio to changes in interest rates. Factors considered include interest rates, economic environment, Federal Reserve policy, market conditions, and characteristics of a particular security. |
■ | Securities Lending — The Fund may lend securities representing up to one third of the value of the Fund’s total assets (including the value of collateral received). |
■ | Temporary Defensive Strategies — For temporary defensive purposes, for example, to respond to adverse market, economic, political or other conditions, the Fund may depart from its principal investment strategies and may restrict the markets in which it invests and may invest without limitation in cash, cash equivalents, money market securities, such as U.S. Treasury and agency obligations, |
other U.S. Government securities, short-term debt obligations of corporate issuers, certificates of deposit, bankers acceptances, commercial paper (short-term, unsecured, negotiable promissory notes of a domestic or foreign issuer) or other high quality fixed income securities. Temporary defensive positions may affect the Fund’s ability to achieve its investment objective. |
■ | 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 before it matures. If the issuer redeems high |
yield securities held by the Fund, the 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 may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with a defaulting issuer. |
BlackRock Intermediate Muni Income Bond ETF | |||||
Year
Ended 07/31/23 |
Year
Ended 07/31/22 |
Period
From 03/16/21(a) to 07/31/21 | |||
Net asset value, beginning of period | $ 24.02 | $ 25.74 | $ 25.00 | ||
Net investment income(b) | 0.67 | 0.34 | 0.09 | ||
Net realized and unrealized gain (loss)(c) | (0.45) | (1.67) | 0.71 | ||
Net increase (decrease) from investment operations | 0.22 | (1.33) | 0.80 | ||
Distributions (d) | |||||
From net investment income | (0.68) | (0.32) | (0.06) | ||
From net realized gain | — | (0.07) | — | ||
Total distributions | (0.68) | (0.39) | (0.06) | ||
Net asset value, end of period | $ 23.56 | $ 24.02 | $ 25.74 | ||
Total Return(e) | |||||
Based on net asset value | 0.97% | (5.21)% | 3.22% (f) | ||
Ratios to Average Net Assets(g) | |||||
Total expenses | 0.40% | 0.40% | 0.40% (h) | ||
Total expenses after fees waived | 0.29% | 0.30% | 0.29% (h) | ||
Net investment income | 2.88% | 1.36% | 0.99% (h) | ||
Supplemental Data | |||||
Net assets, end of period (000) | $25,915 | $33,628 | $25,735 | ||
Portfolio turnover rate(i) | 72% | 30% | 25% | ||
(a) Commencement of operations. | |||||
(b) Based on average shares outstanding. | |||||
(c) 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. | |||||
(d) Distributions for annual periods determined in accordance with U.S. federal income tax regulations. | |||||
(e) Where applicable, assumes the reinvestment of distributions. | |||||
(f) Not annualized. | |||||
(g) Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. | |||||
(h) Annualized. | |||||
(i) Portfolio turnover rate excludes in-kind transactions. |
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Write: | c/o
BlackRock Investments, LLC 1 University Square Drive, Princeton, NJ 08540 |