iShares plans to launch corporate bond ETF maturing in December 2020

By Toni Weeks

San Luis Obispo, Calif., Sept. 17 – iShares Trust will offer another fixed-income target date exchange-traded fund, the iShares iBonds Dec 2020 Corporate ETF, according to an N-1A filing with the Securities and Exchange Commission.

The fund will seek to track the investment results of an index composed of dollar-denominated, investment-grade corporate bonds maturing in 2020.

Initially, the fund will seek to meet its investment objective by investing in individual securities that satisfy the criteria of the Barclays December 2020 Maturity Corporate index. In the future, it may also invest in securities of funds that seek investment results corresponding to their own underlying indexes.

The components of the index, which are scheduled to mature after Dec. 31, 2019 and before Jan. 1, 2021, primarily include industrials, financials and utilities companies.

On or about Dec. 31, 2020, the term fund will terminate, at which time it will distribute its remaining net assets to shareholders.

James Mauro and Scott Radell will be the portfolio managers.

The ticker symbol has not yet been set.

Shareholder fees and annual fund operating expenses have not yet been determined.

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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