When you are ready to purchase an iBonds ETF, we have tools to help you understand the estimated net acquisition yield of the fund. The estimated net acquisition yield provides a yield estimate, net of fees and market price impact, if the fund is held to maturity.
On each iBonds ETFs product page, the Estimated Net Acquisition Yield Calculator can provide a yield estimate if you enter a projected market price. This calculator is also built into the iBonds ETF Ladder Tool, which allows you to view multiple funds at once.
Preview the Estimated Yield of an iBonds ETF
For illustrative purposes only.
iBonds ETFs are designed to provide a yield-to-maturity ("YTM") profile comparable to that of the underlying bond portfolio. The funds seek to preserve an investor’s anticipated yield-to-maturity through a combination of monthly distributions and a final end-date distribution.1
Anticipated investor YTM driven by monthly income distributions and end-date distributions
iBonds ETFs terminate in October or December of the year in the fund’s name.
In the final months when the bonds in the portfolio mature, the fund's holdings transition to cash and cash equivalents.
After all the bonds in the portfolio mature, the ETF is closed and shareholders receive a final distribution equivalent to the fund NAV, after liabilities. This is a similar experience to the principal repayment of an individual bond at maturity.
As the fund’s holdings mature, the ETF will transition to cash equivalents
Since launching in 2010, 3 U.S. Treasury, 12 municipal, 16 investment grade corporate, and 3 high yield and income corporate iBonds ETFs have successfully matured and liquidated. All 34 iBonds ETFs provided a total return experience that closely approximated holding a portfolio of individual bonds.
