iShares iBonds 2027 Term High Yield and Income ETF

iShares iBonds 2027 Term High Yield and Income ETF (IBHG) holds U.S. dollar corporate bonds that mature during 2027. Most are high-yield "junk" bonds. The fund itself is scheduled to close around December 15, 2027, and pay out its remaining assets to shareholders. That fixed end date sets it apart from ongoing short-term high-yield funds such as SHYG and SJNK. It charges 0.35% a year and pays income monthly.

• Over the year to Oct 27, 2026, IBHG returned +2.5%, 3rd of 8 among similar funds.
• Its 5-year annualized return was +3.7%.
• Its worst full calendar year was 2022 (-8.9%); its best was 2023 (+11.3%).
• The deepest fall in its price history was 13.8% (Dec 27, 2021 to Sep 27, 2022), recovered by Dec 13, 2023.

As of Jul 31, 2026, the fund held 224 securities; the ten largest made up 22.89% of assets, and 8.42% sat in cash and money-market holdings.

The bonds mature in 1 years on average (weighted by size), with an average coupon of 5.21%.

• Over the three months to Jul 31, 2026, investors added a net $77.1M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.29%, +0.12%, +0.17%.

IBHG tracks the Bloomberg 2027 Term High Yield and Income Index. The index holds taxable, fixed-rate U.S. dollar corporate bonds scheduled to mature between January 1 and December 15, 2027. Most come from the Bloomberg U.S. High Yield Index. These are below investment grade, meaning rating agencies see a higher risk of default. Some are BBB bonds, the lowest tier of investment grade, from the Bloomberg U.S. Corporate Index. Each bond needs at least $250 million outstanding. Bonds are weighted by market value, and no single issuer can usually exceed 3%.

The index rebalances at the end of each month until June 30, 2027. In its final 1.5 years, BBB bonds replace high-yield bonds that are called (repaid early by the issuer), drop out or fall in value. Bonds priced below $60 per $100 of face value are excluded. In the last six months, the index assumes bonds that mature or are repaid are held in cash. That explains why cash was 8.42% of the fund as of July 31, 2026.

The fund plans to close on or about December 15, 2027, and pay out its net assets. It does not promise any set amount back. Monthly income will vary, and its yield may drift toward money market rates near the end.

• IBHG charges 0.35% a year, versus an average of 0.42% for the similar funds below (3rd of 8, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $36 in the first year and $— over 10 years (assuming a 5% annual return).

IBHG pays monthly income from higher-yielding corporate bonds and has a known end date, which may help someone match cash to a planned expense.

IBHG pays monthly. Its trailing yield was 5.92% as of October 27, 2026. That yield may fall toward money market rates as bonds mature before the fund's planned close around December 15, 2027. The expense ratio is 0.35%, or $36 in the first year on $10,000 under the SEC's standard example. The average for similar funds is 0.42%.

The fund launched in July 2021, so it has no record from 2008 or 2020. In the 2022 bear market it fell 13.6%. Its deepest drop, 13.8%, ran from December 27, 2021, to September 27, 2022. It took about 14.5 months to recover. Its worst calendar year was 2022, at -8.79%. Someone who had to sell in a year like that would lock in losses. Junk bonds can also default. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by bond funds with the closest average maturity and issuer mix (N-PORT).