Designed as buy-and-hold strategies for
long-term investors across all market cycles
Leverages BlackRock’s active portfolio
management expertise to seek to deliver clearer client outcomes
BlackRock debuted today its first buffer ETFs with the launch of
the iShares Large Cap Moderate Buffer ETF (Cboe: IVVM) and the
iShares Large Cap Deep Buffer ETF (Cboe: IVVB). Each ETF offers
investors an efficient tool for seeking clearer financial outcomes
and is designed to balance upside participation with less drawdown
risk.
“Whether you are nearing retirement or a first-time investor,
market volatility remains a top concern for investors,” said
Dominik Rohe, Head of Americas ETF and Index Investments
business at BlackRock. “iShares buffer ETFs unlock access to
institutional-quality risk management solutions in the convenience
of the ETF wrapper, helping investors play defense and,
importantly, stay invested during turbulent market conditions.”
Helping long-term investors through capital markets
innovation
iShares buffer ETFs use options to seek to track the share price
return of the iShares Core S&P 500 ETF (IVV) up to an
approximate upside cap, while mitigating market downturns by
seeking to provide an approximate buffer against IVV losses within
target ranges. IVVM aims to protect against the first 5% of
quarterly losses, while IVVB seeks to protect against quarterly
losses ranging from 5-20%.
Managed by BlackRock’s Fundamental Equities team, iShares buffer
ETFs take an innovative approach to product construction and have
been designed as buy-and-hold strategies. By resetting quarterly,
rather than annually, the funds can more frequently adjust their
buffer ranges to reflect prevailing market levels, providing a
safeguard against ongoing volatility.
Fund Name
Ticker
Reference Asset
Quarterly Downside Buffer Range
Expense Ratio
iShares Large Cap Moderate Buffer ETF
IVVM
S&P 500 (IVV ETF)
0% to -5%
0.50%
iShares Large Cap Deep Buffer ETF
IVVB
S&P 500 (IVV ETF)
-5% to -20%
0.50%
Managing risk to seek clearer outcomes
“BlackRock is focused on equipping advisors and investors with
resilient portfolio solutions that can help them meet their
long-term financial goals,” said Jaime Magyera, Co-Head of the
U.S. Wealth Advisory business at BlackRock. “iShares buffer
ETFs expand the investment toolkit for clients searching for new
ways to manage risk and pursue clearer financial outcomes.”
These funds form part of BlackRock’s outcome-oriented product
suite, which includes the industry’s first BuyWrite Fixed Income
ETFs. iShares buffer ETFs are representative of the firm’s deep
portfolio management expertise, sophisticated ETF infrastructure,
and commitment to innovation.
About BlackRock
BlackRock’s purpose is to help more and more people experience
financial well-being. As a fiduciary to investors and a leading
provider of financial technology, we help millions of people build
savings that serve them throughout their lives by making investing
easier and more affordable. For additional information on
BlackRock, please visit www.blackrock.com/corporate | Twitter:
@blackrock | LinkedIn: www.linkedin.com/company/blackrock
About iShares
iShares unlocks opportunity across markets to meet the evolving
needs of investors. With more than twenty years of experience, a
global line-up of 1300+ exchange traded funds (ETFs) and $3.07
trillion in assets under management as of March 31, 2023, iShares
continues to drive progress for the financial industry. iShares
funds are powered by the expert portfolio and risk management of
BlackRock.
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 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.
Actively managed funds do not seek to replicate the performance
of a specified index. Actively managed funds may have higher
portfolio turnover than index funds.
The Funds are distributed by BlackRock Investments, LLC
(together with its affiliates, “BlackRock”).
The iShares Funds are not sponsored, endorsed, issued, sold or
promoted by S&P Dow Jones Indices LLC, nor does this company
make any representation regarding the advisability of investing in
the Funds. BlackRock is not affiliated with S&P Dow Jones
Indices LLC.
© 2023 BlackRock, Inc. or its affiliates. All Rights Reserved.
BLACKROCK and iSHARES are trademarks of BlackRock,
Inc. or its affiliates. All other trademarks are those of their
respective owners.
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version on businesswire.com: https://www.businesswire.com/news/home/20230630225738/en/
Media Paige Hofman
Paige.hofman@blackrock.com 212-810-3368
Jenna Merchant Jenna.merchant@blackrock.com 929-348-0152
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