putting cash to work - fidelity investments...tx 5.4% in 4.1% la 5.3% ct 3.8% cash segmentation:...
TRANSCRIPT
PUTTING CASH TO WORKwith iShares ETFs
Sean Murphy, CFA
iShares Product Consultant
February 26, 2020
Today’s agenda
2
Today’s cash challenge
Why ETFsWays to invest excess cash
Cash segmentation strategy
iBond ETFs
3
TODAY’S CASH CHALLENGE
Cash doesn’t work as hard as it needs to
4
0.09%
0.52%
1.37%
1.64%
Savings Account 12 Month Bank CD Money Market Fund 5yr Inflation Expectation
Average yield for cash equivalents
Source: FDIC, , Morningstar as of 1/20/20. “Savings Account” and “12 Month Bank CD” are the national average. “Money Market Fund” represents 2a7 Money Market Funds and is calculated using the Weighted Average 7-Day Yield of the Morningstar “Money Market – Taxable” Category.
-1.0
1.0
3.0
5.0
7.0
9.0
11.0
13.0
1960 1970 1980 1990 2000 2010
Inflation by Year
Even low inflation can hurt in the long run…
100
102
104
106
108
110
112
114
116
118
120
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Consumer Price Index
5
Source: Bureau of Labor Statistics, Morningstar 12/31/2019.
Ra
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fla
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Cu
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Two primary risks to fixed income investing
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Interest Rates Credit Risk
A B C
Bond ratings
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Investment Grade Standard & Poor’s
Strongest AAA
AA+
AA
AA-
A+
A
A-
BBB+
BBB
BBB-
Non-investment grade Standard & Poor’s
BB+
BB
BB-
B+
B
B-
CCC+
CCC
CCC-
CC
Non-investment grade Standard & Poor’s
C
Weakest D
1.2
1.4
1.6
1.8
2.0
2.2
Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Federal Funds Interest Rate
Interest rate risk: 2018 case study (Q1 through Q3)
8
94
95
96
97
98
99
100
101
Treasury ETF Performance
iShares 1-3 Year Treasury Bond ETF
iShares 3-7 Year Treasury Bond ETF
iShares 10-20 Year Treasury Bond ETFSource: Bloomberg, Morningstar for the period of 1/1/2018 – 10/31/2018.
Performance data represents past performance and does not guarantee future results. Investment return and principal value wil l fluctuate with market conditions and may be lower or higher when you sell your shares. Current performance may differ from the performance shown. For most recent month-end performance see www.iShares.com. For standardized performance see slides entitled Standardized Performance at the end of this presentation.
Jan Feb Mar April May Jun Jul Aug Sep Oct
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Gro
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($
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80
85
90
95
100
105
9/30/2018 10/30/2018 11/29/2018 12/29/2018
S&P 500 TR USD
Credit risk: 2018 case study (Q4)
9
94
95
96
97
98
99
100
101
102
103
9/30/2018 10/27/2018 11/24/2018 12/22/2018
Bond Fund Returns
iShares US Treasury Bond ETFiShares Broad USD Invm Grd Corp Bd ETFiShares iBoxx $ High Yield Corp Bd ETF
Source: Morningstar.
Performance data represents past performance and does not guarantee future results. Investment return and principal value wil l fluctuate with market conditions and may be lower or higher when you sell your shares. Current performance may differ from the performance shown. For most recent month-end performance see www.iShares.com. For standardized performance see slides entitled Standardized Performance at the end of this presentation.
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WHY ETFs
10
ETFs (exchange traded funds) offer a diversified, low cost, and tax efficient way to invest
What are ETFs?
StockTradable duringthe day
Mutual fundDiversified
ETFsDiversified funds
that trade like stocks
Like a mutual fund, an ETFis a professionally
managed, diversifiedportfolio
Like a stock, an ETF can bebought and sold whenever
the market isopen
Transactions in shares of ETFs can result in brokerage commissions and will generate tax consequences. All regulated investment companies are obliged to distribute portfolio gains to shareholders. For more information on the differences between traditional mutual funds and ETFs, see the end of this document.
11
Why use ETFs?
DIVERSIFICATION
ETFs can hold hundreds of securities within a
single fund to easily diversify your portfolio
LOW COST
ETFs can keep fees lower than other diversified strategies because they largely track
indexes, reducing costs
TAX EFFICIENT
Because of their strategy and structure, ETFs can generally
help reduce tax consequences
12
iShares Funds are obliged to distribute portfolio gains to shareholders by year-end. These gains may be generated due to index rebalancing or to meet diversification requirements. Trading shares of the iShares Funds may also generate tax consequences and transaction expenses.
What commission free means for investors
13
To have $1,200 at year-end, the fund chosen must have returned roughly:
-$5
11%For illustrative purposes only. Assumes a monthly $100 investment with a $5 transaction fee per monthly transaction.
14
WAYS TO INVEST EXCESS CASH
Key considerations
15
Time Horizon
Interest Rates Risk
Credit Risk
Tools for investing excess cash
16
Cash Segmentation
Strategy
iShares® iBonds® ETFs
• Plan for expected cash flows
• Pick points on the yield curve
• Build bond ladders
• A framework for short, medium and longer-term income needs
• Match appropriate risk levels with time horizons
Consider the purpose of the cash you plan to invest
17
Time Horizon
Immediate-term0-3 months
Shorter-term3-6 months
Medium-term6-18 months
Longer-term18+ months
SHV
TFLO
ICSH FLOT
NEAR
MEAR
IGSB
SHY
The strategies discussed are strictly for illustrative and educational purposes and are not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. There is no guarantee that any strategies discussed will be effective. An investment in fixed income funds is not equivalent to and involves risks not associated with an investment in cash.
Access short duration through multiple asset classes
18
Treasuries
▪ Customize your exposure to the short-end of the Treasury curve with targeted access to a specific segment of the US Treasury market.
▪ Fixed (SHV, SHY) and floating rate (TFLO) options are also available.
Municipals
▪ Gain exposure to investment grade US municipal bonds with remaining maturities between one month and five years (MEAR).
Note: US Treasury curve sourced from Bloomberg Active US Treasury Curve; US IG Corp sourced from Bloomberg IG BVAL Yield Curve; US HY Corp sourced from Bloomberg US Corp B+, B, B- BVAL Yield Curve
Source: Bloomberg, Blackrock, as of 1/16/20. Performance data represents past performance and does not guarantee future results. Investment return and principal value will fluctuate with market conditions and may be lower or higher when you sell your shares.Current performance may differ from the performance shown. For most recent month-end performance see www.iShares.com. For standardized performance, see the slides entitled Standardized Performance at the end of this presentation.
TFLO
FLOTNEAR
ICSH
SHV
MEARSHY
IGSB
0
0.5
1
1.5
2
2.5
3
3.5
0 1 2 3 4 5 6 7 8 9 10
30
-Da
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%)
Duration
Corporates
▪ Various options exist and selection will depend on preference of exposure along the credit curve and maturity spectrum.
▪ Fixed (IGSB) and floating rate (FLOT) options are also available.
Cash segmentation: Immediate-term
19
iShares Short Treasury Bond ETF
• 100% Treasuries• 100% AAA Rated• Weighted Average Maturity of 0.41 years• SEC Yield 1.50
iShares Treasury Floating Rate Bond ETF
• 100% Treasuries• 100% AAA Rated• Weighted Average Maturity of 1.14 years• SEC Yield 1.54
Source: BlackRock 1/22/2020. Past performance does not guarantee future results. For standardized performance see slides entitled Standardized Performance at the end of this presentation. An investment in fixed income funds is not equivalent to and involves risks not associated with an investment in cash, including loss of principal.
Time Horizon Immediate-term (less than 3 months)
Typical Use Immediate day to day
Objective Capital preservation and daily access
Investment Type
Short duration treasury market exposure
SHV
TFLO
Cash segmentation: Short-term
20
Source: BlackRock 1/22/2020. Allocations subject to change. Past performance does not guarantee future results. For standardized performance see slides entitled Standardized Performance at the end of this presentation. An investment in fixed income funds is not equivalent to and involves risks not associated with an investment in cash, including loss of principal.
Time Horizon Short-term (3-6 months)
Typical Use Short-term expenses and emergency funds
Objective Stability with incremental income
Investment Type
Ultra-short duration bonds and cash alternatives
Seeks to provide income by investing in a broad range of short-term bonds and money market instruments. However, ICSH is not a money market fund
CDs / Time Deposit, 21.7%
Government0.5%
Commercial Paper25.3%
IG Bonds-Financials
29.0%
IG Bonds-Utilities 1.1%
IG Bonds-Industrials…
Repurchase Agreements,
6.0%
iShares Ultra Short-term Bond ETF (Active)
• All Investment Grade• Weighted Average Maturity of 0.71 years• SEC Yield 1.98
ICSH
Asset Backed Securities
1.6%
Cash segmentation: Medium-term
21
Source: BlackRock 1/22/2020. Allocations subject to change. Past performance does not guarantee future results. For standardized performance see slides entitled Standardized Performance at the end of this presentation. An investment in fixed income funds is not equivalent to and involves risks not associated with an investment in cash, including loss of principal.
Time Horizon Medium-term (6-18 months)
Typical Use Larger future purchases or unexpected expenses
Objective Incremental income and low risk
Investment Type
Ultra-short duration bonds
iShares Short Maturity Bond ETF
• All Investment Grade• Weighted Average Maturity of 1.23 years• SEC Yield 2.19
iShares Floating Rate Bond ETF
• All Investment Grade• Weighted Average Maturity of 1.55 years• SEC Yield 2.04
FLOT
NEAR
iShares Short Maturity Municipal Bond ETF (Active)
• All Investment Grade• Weighted Average Maturity of 0.71 years• SEC Yield 1.06
MEAR
Seeks to maximize tax-free income through diversified exposure to short-term municipal bonds
Top 10 State Exposures
NY 15.8% OH 5.1%
NJ 15.7% KS 4.9%
GA 12.0% FL 4.8%
TX 5.4% IN 4.1%
LA 5.3% CT 3.8%
Cash segmentation: Longer-term
22
iShares 1-3 Year Treasury Bond ETF
• 100% Treasuries• 100% AAA Rated• Weighted Average Maturity of 1.88 years• SEC Yield 1.46
iShares Short-Term Corporate Bond ETF
• All Investment Grade• Weighted Average Maturity of 2.76 years• SEC Yield 2.14
Source: BlackRock 1/22/2020. Past performance does not guarantee future results. For standardized performance see slides entitled Standardized Performance at the end of this presentation. An investment in fixed income funds is not equivalent to and involves risks not associated with an investment in cash, including loss of principal.
Time Horizon Longer-term (18+ months)
Typical Use Longer-term savings
Objective Generate income or growth with some risk
Investment Type
Short duration bonds
SHY
IGSB
MATURE LIKE A BOND
iBonds ETFs payout their NAV in their maturity year1
TRADE LIKE A STOCK
iBonds ETFs can be bought and sold like a share of stock
DIVERSIFY LIKE A FUND
iBonds ETFs hold hundreds of bonds from different
industries or states
23
iBonds ETFs are designed to:
1 Proceeds are expected to be distributed to investors once all the underlying bonds have matured. During maturity transition period, some portion of the Fund’s assets will be in cash and cash equivalents, and is therefore subject to potential reinvestment risk.
Applications of iBonds ETFs
24
Asset-Liability Match
Use iBonds ETFs to invest proceeds for a specific cash flow event, such as buying a house or paying for education
2022 2025An investment in the Fund(s) is not guaranteed, and an investor may experience losses, including near or at the termination date.
Target specific yield and risk with iBonds
25
0
1
2
3
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
30
Da
y S
EC
Yie
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Year of Maturity
iBonds - SEC Yield
Corporate Municipal
Maturity year
Investment Grade Corporate
Municipal
2020 IBDL IBMI
2021 IBDM IBMJ
2022 IBDN IBMK
2023 IBDO IBML
2024 IBDP IBMM
2025 IBDQ IBMN
2026 IBDR IBMO
2027 IBDS IBMP
2028 IBDT IBMQ
2029 IBDUSource: BlackRock 1/22/2020. Performance data represents past performance and does not guarantee future results. Investment return and principal value will fluctuate with market conditions and may be lower or higher when you sell your shares. Current performance may differ from the performance shown. For most recent month-end performance see www.iShares.com. For standardized performance see slides entitled Standardized Performance at the end of this presentation.
iBonds case study
26
Source: BlackRock and Bloomberg as of 9/3/2019. IBMH is the iShares iBonds Sep 2019 Term Muni Bond ETF and matured in September 2019. Past performance does not guarantee future results. There is not a guarantee that other iBonds funds will experience the same investment results. IBMH tracked the S&P AMT-Free Muni Series 2019 Index.
0%
20%
40%
60%
80%
100%
May-19 Jun-19 Jul-19 Aug-19
Po
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% Cash
IBMH’s Duration Portfolio Shift to Cash as Bonds Mature (2019)
0
1
2
3
4
5
Feb-14 Feb-15 Feb-16 Feb-17 Feb-18 Feb-19
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(y
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5
4
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2
1
0
Du
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(y
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100%
80%
60%
40%
20%
0%
2014 2015 2016 2017 2018 2019 May June July Aug
IN SUMMARY
Why ETFs
Diversification Low cost Tax efficient
Ways to invest excess cash
27
Cash Segmentation Strategies
iBonds ETFs
APPENDIX
Standardized performance as of 12/31/2019
29
Ticker Fund NameFund Inception
DateGross Expense
Ratio30-Day
SEC Yield
1-Year Returns 5-Year Returns 10-Year Returns Since Inception
NAV Mkt Price NAV Mkt Price NAV Mkt Price NAV Mkt Price
SHV iShares Short Treasury Bond ETF 1/5/2007 0.15% 1.52% 2.33% 2.35% 1.03% 1.03% 0.54% 0.54% 1.03% 1.03%
TFLO iShares Treasury Floating Rate Bond ETF 2/3/2014 0.15% 1.56% 2.08% 2.04% 1.07% 1.09% -- -- 0.92% 0.92%
ICSH iShares Ultra Short-Term Bond ETF 12/11/2013 0.08% 2.04% 3.18% 3.20% 1.66% 1.68% -- -- 1.44% 1.45%
FLOT iShares Floating Rate Bond ETF 6/14/2011 0.20% 2.10% 3.80% 3.99% 1.76% 1.79% -- -- 1.44% 1.44%
NEAR iShares Short Maturity Bond ETF 9/25/2013 0.25% 2.25% 3.47% 3.51% 1.76% 1.78% -- -- 1.58% 1.58%
MEAR iShares Short Maturity Municipal Bond ETF 3/3/2015 0.25% 1.17% 2.03% 1.95% -- -- -- -- 1.14% 1.15%
IGSB iShares Short-Term Corporate Bond ETF 1/5/2007 0.06% 2.24% 7.01% 7.05% 2.42% 2.38% 2.22% 2.13% 2.92% 2.90%
SHY iShares 1-3 Year Treasury Bond ETF 7/22/2002 0.15% 1.51% 3.42% 3.35% 1.26% 1.25% 1.10% 1.09% 2.02% 2.02%
IEI iShares 3-7 Year Treasury Bond ETF 1/5/2007 0.15% 1.57% 5.78% 5.66% 2.23% 2.22% 2.87% 2.86% 3.76% 3.76%
TLH iShares 10-20 Year Treasury Bond ETF 1/5/2007 0.15% 1.94% 10.83% 10.31% 3.32% 3.30% 5.51% 5.50% 5.67% 5.65%
GOVT iShares U.S. Treasury Bond ETF 2/14/2012 0.15% 1.67% 6.71% 6.62% 2.24% 2.22% -- -- 1.93% 1.93%
USIGiShares Broad USD Investment Grade Corporate Bond ETF
1/5/2007 0.06% 2.87% 14.16% 14.01% 4.28% 4.20% 5.15% 5.12% 5.18% 5.17%
HYG iShares iBoxx $ High Yield Corporate Bond ETF 4/4/2007 0.49% 4.46% 14.23% 14.09% 5.04% 5.01% 6.44% 6.27% 5.65% 5.60%
IBMO iBonds® Dec 2026 Term Muni Bond ETF 4/2/2019 0.18% 1.22% -- -- -- -- -- -- 2.73% 2.81%
IBMP iBonds® Dec 2027 Term Muni Bond ETF 4/9/2019 0.18% 1.32% -- -- -- -- -- -- 2.94% 3.02%
IBMQ iBonds® Dec 2028 Term Muni Bond ETF 4/16/2019 0.18% 1.41% -- -- -- -- -- -- 3.22% 3.30%
Fees as of current prospectus. All other data as of 12/31/19.
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.iShares.com or www.blackrock.com.
Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Market returns are based upon the midpoint of the bid/ask spread at 4:00 p.m. eastern time (when NAV is normally determined for most ETFs), and do not represent the returns you would receive if you traded shares at other times.
Standardized performance as of 12/31/2019 continued
30
Ticker Fund NameFund Inception
DateGross Expense
Ratio30-Day
SEC Yield
1-Year Returns 5-Year Returns 10-Year Returns Since Inception
NAV Mkt Price NAV Mkt Price NAV Mkt Price NAV Mkt Price
IBDL iBonds® Dec 2020 Term Corporate ETF 12/2/2014 0.10% 1.95% 3.80% 3.80% 2.61% 2.16% -- -- 2.55% 2.57%
IBDM iBonds® Dec 2021 Term Corporate ETF 3/10/2015 0.10% 1.97% 5.38% 5.29% -- -- -- -- 2.73% 2.74%
IBDN iBonds® Dec 2022 Term Corporate ETF 3/10/2015 0.10% 2.06% 7.37% 7.31% -- -- -- -- 3.30% 3.31%
IBDO iBonds® Dec 2023 Term Corporate ETF 3/11/2015 0.10% 2.19% 8.82% 8.85% -- -- -- -- 3.70% 3.72%
IBDP iBonds® Dec 2024 Term Corporate ETF 3/11/2015 0.10% 2.34% 10.88% 10.95% -- -- -- -- 4.02% 4.05%
IBDQ iBonds® Dec 2025 Term Corporate ETF 3/11/2015 0.10% 2.42% 12.96% 12.89% -- -- -- -- 4.36% 4.37%
IBDR iBonds® Dec 2026 Term Corporate ETF 9/13/2016 0.10% 2.56% 14.06% 14.23% -- -- -- -- 4.21% 4.25%
IBDS iBonds® Dec 2027 Term Corporate ETF 9/12/2017 0.10% 2.74% 15.07% 15.10% -- -- -- -- 5.34% 5.54%
IBDT iBonds® Dec 2028 Term Corporate ETF 9/18/2018 0.10% 2.83% 15.52% 15.00% -- -- -- -- 12.41% 12.65%
IBDU iBonds® Dec 2029 Term Corporate ETF 9/17/2019 0.10% 2.92% -- -- -- -- -- -- 2.64% N/A
IBMI iBonds® Sep 2020 Term Muni Bond ETF 8/12/2014 0.18% 0.94% 2.02% 1.89% 1.54% 1.38% -- -- 1.58% 1.57%
IBMJ iBonds® Dec 2021 Term Muni Bond ETF 9/1/2015 0.18% 0.93% 2.86% 2.77% -- -- -- -- 2.04% 2.04%
IBMK iBonds® Dec 2022 Term Muni Bond ETF 9/1/2015 0.18% 0.95% 3.84% 3.68% -- -- -- -- 2.55% 2.55%
IBML iBonds® Dec 2023 Term Muni Bond ETF 4/11/2017 0.18% 0.98% 4.74% 4.57% -- -- -- -- 2.78% 2.81%
IBMM iBonds® Dec 2024 Term Muni Bond ETF 3/20/2018 0.18% 1.02% 5.83% 5.66% -- -- -- -- 5.06% 5.10%
IBMN iBonds® Dec 2025 Term Muni Bond ETF 11/13/2018 0.18% 1.07% 7.21% 6.87% -- -- -- -- 9.43% 9.46%
Fees as of current prospectus. All other data as of 12/31/19.
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.iShares.com or www.blackrock.com.
Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Market returns are based upon the midpoint of the bid/ask spread at 4:00 p.m. eastern time (when NAV is normally determined for most ETFs), and do not represent the returns you would receive if you traded shares at other times.
Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses which may be obtained by visiting www.iShares.com or www.blackrock.com. Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal.Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments. Non-investment-grade debt securities (high-yield/junk bonds) may be subject to greater market fluctuations, risk of default or loss of income and principal than higher-rated securities. There may be less information on the financial condition of municipal issuers than for public corporations. The market for municipal bonds may be less liquid than for taxable bonds. Some investors may be subject to federal or state income taxes or the Alternative Minimum Tax (AMT). Capital gains distributions, if any, are taxable.
Securities with floating or variable interest rates may decline in value if their coupon rates do not keep pace with comparable market interest rates. The iShares Floating Rate Bond ETF's income may decline when interest rates fall because most of the debt instruments held by the Fund will have floating or variable rates. Funds that concentrate investments in specific industries, sectors, markets or asset classes may underperform or be more volatile than other industries, sectors, markets or asset classes and than the general securities market. Shares of ETFs trade at market price, which may be greater or less than net asset value. Actively managed funds do not seek to replicate the performance of a specified index. Actively managed funds may have higher portfolio turnover than index funds. The iShares Short Maturity Bond ETF will invest in privately issued securities that have not been registered under the Securities Act of 1933 and as a result are subject to legal restrictions on resale. Privately issued securities are not traded on established markets and may be illiquid, difficult to value and subject to wide fluctuations in value. Delay or difficulty in selling such securities may result in a loss to the iShares Short Maturity Bond ETF. The fund may invest in asset-backed (“ABS”) and mortgage-backed securities (“MBS”) which are subject to credit, prepayment and extension risk, and react differently to changes in interest rates than other bonds. Small movements in interest rates may quickly reduce the value of certain ABS and MBS.
The iShares iBonds ETFs will terminate in September or December of the year in the fund's name. An investment in the Fund(s) is not guaranteed, and an investor may experience losses, including near or at the termination date. In the final months of the Fund’s operation, as the bonds it holds mature, its portfolio will transition to cash and cash -like instruments. Following the Fund’s termination date, the Fund will distribute substantially all of its net assets, after deduction of any liabilities, to then -current investors without further notice and will no longer be listed or traded. The Funds do not seek to return any predetermined amount.
During the months prior to the Fund’s planned termination date, its yield will generally tend to move toward prevailing money market rates (or, the case of the Muni iBonds ETFs, tax-exempt money market rates), and may be lower than the yields of the bonds previously held by the Fund and lower than prevailing yields for bonds in the market. The rate of Fund distribution payments may adversely affect the tax characterization of an investor’s returns from an investment in the Fund relative to a direct investment in bonds. If the amount an investor receives as liquidation proceeds upon the Fund’s termination is higher or lower than the investor’s cost basis, the investor may experience a gain or loss for tax purposes.
This document contains general information only and does not take into account an individual's financial circumstances. This information should not be relied upon as a primary basis for an investment decision. Rather, an assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial advisor before making an investment decision.
Transactions in shares of ETFs will result in brokerage commissions and will generate tax consequences. All regulated investment companies are obliged to distribute portfolio gains to shareholders.
Diversification and asset allocation may not protect against market risk or loss of principal. The strategies discussed are strictly for illustrative and educational purposes and are not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. There is no guarantee that any strategies discussed will be effective.
Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Market returns are based upon the midpoint of the bid/ask spread at 4:00 p.m. eastern time (when NAV is normally determined for most ETFs), and do not represent the returns you would receive if you traded shares at other times.
The Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Markit Indices Limited or S&P Dow Jones Indices LLC. Neither of these companies make any representation regarding the advisability of investing in the Funds. BlackRock is not affiliated with the companies listed above.
©2020 BlackRock. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock. All other marks are the property of their respective owners.
The information provided in this communication is solely for educational purposes and should not be construed as advice or an investment recommendation. Fidelity Investments is a separate company, unaffiliated with BlackRock, Inc.. There is no form of partnership, agency affiliation, or similar relationship between BlackRock, Inc. and Fidelity Investments, nor is such a relationship created or implied by the information herein. Fidelity Investments has not been involved with the preparation of the content supplied by BlackRock, Inc. and does not guarantee or assume any responsibility for its accuracy or completeness.
Important notes
31