iShares iBonds Dec 2024 Term Fund

The iShares iBonds Dec 2024 Term Fund is a type of exchange-traded fund (ETF) that focuses on providing fixed-income exposure, specifically targeting municipal bonds with maturities in December 2024. This fund is designed to offer investors a defined maturity date, akin to investing directly in individual bonds, while benefitting from the diversification advantage of an ETF structure. By doing so, it aims to help investors manage interest rate risk and reinvestment risk associated with bond investing. The iShares iBonds Dec 2024 Term Fund predominantly includes a selection of municipal bonds, which are generally issued by local and state governments in the U.S. and are often sought for their tax advantages, as the interest income is usually exempt from federal income taxes. By maturing at a fixed date and reinvesting the proceeds at fund maturity, this ETF serves a unique function in portfolio strategies that require predictable cash flow and tax-efficient income planning, appealing to investors with a focus on capital preservation and income generation.