BlackRock, Inc., announced today that two iShares iBonds ETFs Mar 2016 Corporate ex-Financials ETF (NYSE: IBCB) and Mar 2016 Corporate ETF (NYSE: IBDA) will, by design, cease trading at the closure of U.S. market hours on March 29, 2016.
Leading up to the final distribution date, the individual bonds in the ETFs mature and the funds transition into short-term taxable instruments and cash. Remaining shareholders can expect to receive the entire amount of their proceeds in cash on or after April 4, 2016, subject to their brokerage processes.
IBCB and IBDA will be the fifth and sixth of the iShares iBonds series to have their underlying holdings mature, and will also be the first and second corporate iBonds ETFs maturing. The first in the series, the iShares 2012 S&P AMT-Free Municipal Series ETF closed in August 2012. There are seven additional iShares ETFs in the Municipal series with end dates ranging from 2016 to 2022. There are 16 additional iShares ETFs in the Corporate series with end dates ranging from 2016 to 2025.
iShares iBonds Corporate Bond ETFs are designed to offer investors exposure to investment grade corporate bonds with potential benefits of both ETFs and bonds. Each fund contains a diversified set of securities and seeks to track a Barclays Maturity Corporate Index, and can be bought and sold daily on an exchange. Like a bond, each fund has periodic distributions of income and a pre-determined date when the fund will close and distribute proceeds to shareholders.