iShares iBonds 2025 Term High Yield and Income ETF

IBHE

Market cap $369M

NEW YORK--(BUSINESS WIRE)--BlackRock announced today the planned termination of three iShares iBonds ETFs, which include the following timelines for trading, net-asset value (NAV) calculation and expected liquidation: Ticker Fund name Exchange Last day of trading Final NAV calculation date Liquidation date IBDQ iShares® iBonds® Dec 2025 Term Corporate ETF NYSE Arca 12/15/25 12/15/25 12/18/25 IBTF iShares® iBonds® Dec 2025 Term Treasury ETF NASDAQ 12/15/25 12/15/25 12/18/25 IBHE iShares® iBonds®.

iShares iBonds 2025 Term High Yield and Income ETF has a set termination date of December 2025, offering clear visibility into its maturity timeline and risk profile. The fund has a short duration of 0.57 years, which means it is less sensitive to interest rate and credit risk. This duration will continue to decrease as bonds mature. IBHE offers a 5.93% 30-day SEC yield and a 6.1% average yield to maturity, making it appealing for investors seeking higher returns compared to traditional money market funds.

iShares iBonds 2025 Term High Yield and Income ETF has an attractive 7% yield, but it is not a long-term investment. It is a bond ladder rung. Bond ladder ETFs are designed to be held until redemption to limit the risk of price gyration. However, IBHE volatility has been very low for 4 years. If you think interest rates will go down, bond ladders can lock in high rates in your portfolio for a few more years.

iShares iBonds 2025 Term High Yield and Income ETF (IBHE) holds a portfolio of high-yielding US dollar-denominated bonds that mature in 2025. From July 2025, the fund will hold cash and cash equivalents until termination.

iShares iBonds 2025 Term High Yield and Income ETF is a less risky high-yield bond fund that will terminate at the end of 2025. The fund follows the Bloomberg 2025 Term High Yield and Income Index and uses representative sampling to construct its portfolio. 7% yield with no duration risk is an interesting prospect, but we tell you why we are staying out.