iShares adds iSharesBond corporate term ETF maturing in December 2016

By Toni Weeks

San Luis Obispo, Calif., April 17 - iShares Trust will offer another fixed-income target date exchange-traded fund, the iSharesBond Dec 2016 Corporate Term ETF, according to an N-1A filing with the Securities and Exchange Commission.

The fund will seek to track the investment results of the Barclays December 2016 Maturity Corporate index, which is composed of dollar-denominated, taxable, investment-grade corporate bonds scheduled to mature after Dec. 31, 2015 and before Jan. 1, 2017. Components of the index primarily include industrials, financials and utilities companies. The fund may also invest in other ETFs, U.S. government securities, short-term paper, cash and cash equivalents, including shares of money market funds advised by BlackRock.

On about Dec. 31, 2016, the term fund will terminate, at which time it will distribute its remaining net assets to shareholders.

Initially the fund will invest in individual securities that satisfy the criteria of the underlying index. In the future, it may also invest in the securities of one or more underlying funds that themselves seek investment results corresponding to their own underlying indexes.

James Mauro and Scott Radell will be the portfolio managers.

The ETF will trade on the NYSE Arca under the symbol "IBDF."

There are no shareholder fees. Annual fund operating expenses will be 0.1% and consist entirely of a 0.1% management fee.

San Francisco-based BlackRock Fund Advisors, a wholly owned indirect subsidiary of BlackRock, Inc., will act as the investment adviser to the fund.

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