Expands access to options strategies in the
convenience of an ETF
Includes the most affordable buffer ETF that
targets up to 100% downside protection in the market1
BlackRock bolstered its active ETF platform with a series of
buffer ETFs that aims to provide investors with exposure to equity
growth potential while seeking to maximize downside protection. The
first of the series – the iShares Large Cap Max Buffer Jun ETF
(Cboe: MAXJ) launched today, making it the most affordable max
buffer ETF that targets up to 100% downside protection in the
market.1
“With record levels of cash sitting on the sidelines2, many
investors are looking for tools to help navigate market volatility
before they step back into the market,” said Rachel Aguirre,
Head of U.S. iShares Product at BlackRock. “iShares Max Buffer
ETFs simplify access to traditional institutional risk management
strategies in the convenience of the ETF wrapper, equipping
investors with resilient portfolio tools to help them stay invested
in any market cycle.”
Product innovation expands toolkit for long-term
investors
By utilizing a combination of options, the iShares Large Cap Max
Buffer ETFs (Max Buffer ETFs) seek to track the share price return
of the underlying ETF, the iShares Core S&P 500 ETF (IVV), up
to an approximate upside cap, while seeking to provide up to a 100%
approximate buffer against IVV losses for each applicable hedge
period.
The Max Buffer ETFs are expected to launch over a one-year
period beginning at each quarter end, with the cap resetting for
each Fund upon the option expiry at the end of each one-year
period.
Designed as buy-and-hold strategies, the Max Buffer ETFs are the
latest additions to BlackRock’s outcome-oriented product suite,
which includes two buffer ETFs launched last year, and a range of
BuyWrite fixed income and equity ETFs. BlackRock now manages $25
billion in assets under management across more than 40 active ETFs
in the U.S.3
Fund Name
Reference Asset
Downside Buffer
Expense Ratio*
Hedge Period
Anticipated Launch Date
Gross
Net
iShares Large Cap Max Buffer Jun ETF
(Cboe: MAXJ)
S&P 500 (IVV ETF)
100%
0.53%
0.50%
July 1 to June 30
July 1, 2024
iShares Large Cap Max Buffer Sep ETF
(Cboe: SMAX) **
S&P 500 (IVV ETF)
100%
0.53%
0.50%
October 1 to September 30
October 1, 2024
iShares Large Cap Max Buffer Dec ETF
(Cboe: DMAX) **
S&P 500 (IVV ETF)
100%
0.53%
0.50%
January 1 to December 31
January 2, 2025
iShares Large Cap Max Buffer Mar ETF
(Cboe: MMAX) **
S&P 500 (IVV ETF)
100%
0.53%
0.50%
April 1 to March 31
April 1, 2025
* BlackRock, as of June 30, 2024. Net expense ratio shown
reflects a contractual fee waiver in place through November 30,
2029.
**A registration statement has been filed for the Fund and
the registration statement has become effective. However, shares of
the Fund are not yet available for purchase or sale. Carefully
consider the Funds’ investment objectives, risk factors, and
charges and expenses before investing. This and other information
can be found in the Fund’s prospectus, which may be obtained by
visiting the SEC website, by visiting www.iShares.com prior to
launch, or by calling 1-800-iShares (1-800-474-2737). Read the
prospectus carefully before investing.
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.
There can be no guarantee that the Fund will be successful in
its strategy to provide downside protection against Underlying ETF
losses. The Fund does not provide principal protection or
non-principal protection, and, despite the Approximate Buffer (the
“Buffer”), an investor may experience significant losses on their
investment, including the loss of their entire investment. A
blended portfolio of Expiring Options and New Options during a
Rebalance Period will impact the Fund’s ability to realize the full
benefit of the Buffer or may subject the Fund’s return to an upside
limit that is slightly lower or higher than the Approximate Cap
(the “Cap") for the applicable Hedge Period. Accordingly, investors
may bear losses against which the Buffer is anticipated to protect
and be subject to an upside limit that is lower than the Cap. In
the event an investor purchases Fund shares after a Hedge Period
begins or sells Fund shares prior to the end of the Hedge Period,
the returns realized by the investor will not match those that the
Fund seeks to provide. In periods of extreme market volatility, the
Fund’s return may be subject to downside protection significantly
lower than the Buffer and an upside limit significantly below the
Cap. A new cap is established during each Rebalance Period and is
dependent upon current market conditions. As such, the Cap is
likely to change, sometimes significantly, from one Hedge Period to
the next. The Fund invests in FLEX Options that derive their value
from the Underlying ETF. FLEX Options are subject to counterparty
risk, which is the risk that the other party in the transaction
will not fulfill its contractual obligation, and may be less liquid
than other securities. The value of FLEX Options may be affected by
interest rate changes, dividends, actual and implied volatility
levels of the Underlying ETF’s share price, and the remaining time
until the FLEX Options expire. Because of these factors, the Fund’s
NAV may not increase or decrease at the same rate as the underlying
ETF’s share price.
The Fund is actively managed and does not seek to replicate the
performance of a specified index, may have higher portfolio
turnover, and may charge higher fees than index funds due to
increased trading and research expenses.
An investment in ETFs is not equivalent to and could involve
significant risks not associated with an investment in cash.
This information should not be relied upon as research,
investment advice, or a recommendation regarding any products,
strategies, or any security in particular. This material is
strictly for illustrative, educational, or informational purposes
and is subject to change.
Buying and selling shares of ETFs may result in brokerage
commissions.
The Funds are distributed by BlackRock Investments, LLC
(together with its affiliates, “BlackRock”).
©2024 BlackRock, Inc. or it's affiliates. All rights reserved.
BLACKROCK® and iSHARES are trademarks of BlackRock,
Inc. or its affiliates. All other trademarks are those of their
respective owners.
Not FDIC Insured. May Lose Value. No Bank Guarantee.
BlackRock, Inc., 50 Hudson Yards New York, NY 10001
________________________
1 BlackRock and Morningstar, as of June
20, 2024, based on review of all 100% Max Buffer ETFs in the “US
Funds Options Trading” Morningstar Category. The Fund aims to
provide a 100% downside buffer against price declines of the
Underlying for the 1-year period, before fees and expenses, if held
for the entire hedge period.
2 Bank of America, May 2024.
3 BlackRock, as of June 30, 2024
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version on businesswire.com: https://www.businesswire.com/news/home/20240701314323/en/
MEDIA CONTACT Joanna Yau Joanna.Yau@BlackRock.com
646.856.7274
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