At a glance
IBHE charges 0.35% a year, below the 0.5% average of the 7 funds most like it (the 3rd cheapest of 8). It has $426.3M in assets, the 8th largest of that group; it paid 0.73% of its price in distributions over the past 12 months, semiannual. Over the past year it returned +0.6% with distributions reinvested, the weakest of those 8 funds; over three years it returned +5.2% a year. At its worst it fell 26.8% in the 2020 crash (S&P 500: 33.7%) and 8.4% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 8 months and 12 months after the lows. Its ten largest positions make up 20.8% of the fund, out of 34 in all.
The short version
iShares iBonds 2025 Term High Yield & Income ETF (IBHE) is a BlackRock term fund. It tracks the Bloomberg 2025 Term High Yield and Income Index, a basket of high-yield and BBB-rated corporate bonds that mature in 2025. Unlike most bond funds, it was built to end: the prospectus set it to terminate on or about December 15, 2025, and pay out its remaining assets. Its 0.35% expense ratio is below the 0.50% average for similar funds.
Price history
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IBHE +0.6% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| IBHE price data to Oct 27, 2026 | 0.0% | +0.6% | +5.2% | +3.7% | — | +4.2% |
- Over the year to Oct 27, 2026, IBHE returned +0.6%, 8th of 8 among similar funds.
- Its 5-year annualized return was +3.7%.
- In the 2020 COVID crash it fell 26.8% and regained its old high 7.6 months after the low.
- Its worst full calendar year was 2022 (-4.1%); its best was 2023 (+10.3%).
- The deepest fall in its price history was 26.9% (Feb 12, 2020 to Mar 20, 2020), recovered by Nov 5, 2020.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | 0.0% |
| 2025 | +4.5% |
| 2024 | +7.6% |
| 2023 | +10.3% |
| 2022 | -4.1% |
| 2021 | +4.4% |
| 2020 | +3.7% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 21.6% over that stretch · deepest drop along the way 26.8%, back to its old high 7.6 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 7% over that stretch · deepest drop along the way 8.4%, back to its old high 11.8 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2025 | $1.0600 | -34.2% |
| 2024 | $1.6100 | -2.4% |
| 2023 | $1.6500 | +27.9% |
| 2022 | $1.2900 | +7.0% |
| 2021 | $1.2053 | -8.7% |
| 2020 | $1.3203 |
What's inside
As of Oct 31, 2025, the fund held 34 securities; the ten largest made up 20.77% of assets, and 70.52% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| UNITED WHOLESALE MTGE LL Bonds and notes | 4.21% | |
| ALLY FINANCIAL INC Bonds and notes | 3.94% | |
| BANCO SANTANDER SA Bonds and notes | 3.50% | |
| DUPONT DE NEMOURS INC Bonds and notes | 1.98% | |
| FORD MOTOR CREDIT CO LLC Bonds and notes | 1.67% | |
| LLOYDS BANKING GROUP PLC Bonds and notes | 1.60% | |
| ILLUMINA INC Bonds and notes | 1.12% | |
| ORACLE CORP Bonds and notes | 1.11% | |
| MORGAN STANLEY Bonds and notes | 0.88% | |
| DUKE ENERGY CORP Bonds and notes | 0.76% | |
| ROGERS COMMUNICATIONS IN Bonds and notes | 0.75% | |
| CITIZENS FINANCIAL GROUP Bonds and notes | 0.68% | |
| CIGNA GROUP Bonds and notes | 0.67% | |
| CONAGRA BRANDS INC Bonds and notes | 0.60% | |
| AMERICAN ELECTRIC POWER Bonds and notes | 0.54% |
By country
United States 21.3%Spain 3.5%United Kingdom 1.87%Canada 0.81%By issuer
Companies 27.19%Other 0.29%The bonds mature in 0.1 years on average (weighted by size), with an average coupon of 4.67%.
Source: N-PORT holdings report as of Oct 31, 2025. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Oct 31, 2025, investors withdrew a net $103.2M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.34%, +0.39%, +0.35%.
How it works
IBHE tracks the Bloomberg 2025 Term High Yield and Income Index. The index holds US-dollar, taxable, fixed-rate corporate bonds scheduled to mature between January 1 and December 15, 2025. Most are high-yield bonds, also called junk bonds, which are rated below investment grade. The rest are BBB bonds, the lowest investment-grade tier. Each bond needs at least $250 million outstanding. Bloomberg uses the middle rating of Moody's, S&P and Fitch. Bonds priced below $60 are excluded.
Bonds are weighted by market value, and any one issuer is usually capped at 3%. The index updated monthly until six months before maturity, and its last rebalance was June 30, 2025. In the final 1.5 years, BBB bonds replaced high-yield bonds that were called, dropped out or lost value. In the last six months, maturing principal was not reinvested and was assumed to sit in cash. That explains the holdings as of October 31, 2025: 70.52% cash and only 27.5% in bonds, with an average of 0.1 years left to maturity.
The fund was scheduled to terminate on or about December 15, 2025 and distribute its remaining net assets under a plan of liquidation. It does not promise to return any set amount. Portfolio turnover was 80%.
What it really costs
- IBHE charges 0.35% a year, versus an average of 0.5% for the similar funds below (3rd of 8, cheapest first).
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
IBHE was designed to pay high-yield bond income up to a fixed end date, much like holding a group of bonds to maturity, though that term was scheduled to end around December 15, 2025.
IBHE gave retirees a way to collect junk-bond income with a known end date. That income came with stock-like swings. In the 2020 COVID crash, it fell 26.8% between February 20 and March 20, 2020, then took about 7.6 months to recover. In 2022 it dropped 8.4% and needed about 11.8 months to regain its high. Its worst calendar year was 2022, at -4.1%. Anyone forced to sell in March 2020 would have locked in a steep loss. The fund paid income twice a year. Its trailing 12-month yield was 0.73% as of October 27, 2026, a figure shaped by the wind-down. Its 0.35% expense ratio is below the 0.50% average for similar funds. Because of its scheduled termination, it is not a long-term holding. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors studying defined-maturity bond ETFs, which hold bonds maturing in one year and then pay out, much like one rung of a bond ladder.
- Cost-conscious investors comparing high-yield funds: IBHE's 0.35% expense ratio was below the 0.50% average of similar funds.
- Income seekers who accepted junk-bond risk and could sit through drops like its 26.8% fall in early 2020.
Look elsewhere if
- Anyone wanting a lasting holding: the prospectus scheduled IBHE to terminate on or about December 15, 2025.
- Investors who want frequent income. It paid semiannually, and its trailing yield was 0.73% as of October 27, 2026.
- Those wanting broad diversification. As of October 31, 2025, it had 35 positions and held 70.52% of assets in cash.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| IBHE this fund | 0.1 yrs | 0.35% | $426.3M | +0.6% | +5.2% |
| SHYG iShares 0-5 Year High Yield Corporate Bond … | 3.1 yrs | 0.3% | $7.60B | +2.4% | +8.0% |
| SJNK SPDR Bloomberg Short Term High Yield Bond E… | 3.1 yrs | 0.4% | $4.88B | +1.5% | +7.8% |
| HYLB Xtrackers USD High Yield Corporate Bond ETF | 4.6 yrs | 0.05% | $3.56B | +1.6% | +8.7% |
| BKLN Invesco Senior Loan ETF | 4.8 yrs | 0.65% | $6.74B | +3.9% | +6.9% |
| HYDB iShares High Yield Systematic Bond ETF | 5.2 yrs | 0.35% | $1.61B | +0.9% | +8.7% |
| SRLN SPDR Blackstone Senior Loan ETF | 5.2 yrs | 0.7% | $5.21B | +3.7% | +7.0% |
| HYLS First Trust Tactical High Yield ETF | 5.2 yrs | 1.05% | $1.62B | +1.6% | +8.3% |
Questions investors ask
When does IBHE mature?
IBHE was scheduled to terminate on or about December 15, 2025. At that point it would distribute its remaining net assets to shareholders under a plan of liquidation. The fund does not promise to return any set amount at maturity. In its final six months, maturing bonds were not reinvested, so cash built up. As of October 31, 2025, cash made up 70.52% of the fund.
Does IBHE pay monthly dividends?
No. IBHE paid distributions twice a year, not monthly. Over the 12 months to October 27, 2026, it paid $0.17 per share, a trailing yield of 0.73%. That low figure reflects the fund's wind-down: by its last months it held mostly cash, which the index assumed earned no interest. Funds that pay monthly may better suit retirees who need regular cash flow.
What's the difference between IBHE and SHYG?
Both are iShares high-yield bond ETFs, but they are built differently. IBHE held bonds maturing in 2025 and had a set end date. As its name suggests, SHYG spans bonds maturing within zero to five years, with an average of 3.1 years to maturity. SHYG costs 0.30% a year, against IBHE's 0.35%. As of October 27, 2026, SHYG returned 8.0% a year over three years, compared with IBHE's 5.2%.
Is IBHE a junk bond fund?
Mostly, yes. Its index holds high-yield corporate bonds, which are rated below investment grade, plus BBB bonds, the lowest investment-grade tier. As the fund neared its end, BBB bonds replaced high-yield bonds that were called or dropped out. As of October 31, 2025, its largest bond holdings were United Wholesale Mortgage (4.2%), Ally Financial (3.9%) and Banco Santander (3.5%).
How did IBHE do in the 2020 stock market crash?
It fell hard. IBHE dropped 26.8% between February 20 and March 20, 2020, and its worst quarter was a 12.97% loss in the first quarter of 2020. It bounced back quickly: its strongest quarter was an 8.74% gain in the second quarter of 2020, and it recovered its prior high by November 5, 2020. The episode shows that junk bonds can fall sharply alongside stocks.