At a glance
IBMO charges 0.18% a year, above the 0.11% average of the 7 funds most like it (the 5th cheapest of 8). It has $576.0M in assets, the 8th largest of that group; it paid 2.38% of its price in distributions over the past 12 months, monthly. Over the past year it returned +2.6% with distributions reinvested, the best of those 8 funds; over three years it returned +3.5% a year. At its worst it fell 14.8% in the 2020 crash (S&P 500: 33.7%) and 7.8% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 4 months and 29 months after the lows. Its ten largest positions make up 4.2% of the fund, out of 695 in all.
The short version
iShares iBonds Dec 2026 Term Muni Bond ETF (IBMO) holds investment-grade, tax-exempt US municipal bonds that mature or are redeemed before December 2, 2026. After that it winds down, much like a single bond with a set end date. Funds such as JMST or SUB have no comparable finish line. As of July 31, 2026, about 52% of IBMO's assets were cash as bonds matured, and it charges 0.18% a year.
Price history
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IBMO +2.6% 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 | |
|---|---|---|---|---|---|---|
| IBMO official prospectus, to Dec 31, 2025 | — | +3.10% | — | +0.44% | — | +1.82% |
| IBMO price data to Oct 27, 2026 | +1.8% | +2.6% | +3.5% | +0.9% | — | +1.8% |
- Over the year to Oct 27, 2026, IBMO returned +2.6%, 1st of 8 among similar funds.
- Its 5-year annualized return was +0.9%.
- In the 2020 COVID crash it fell 14.8% and regained its old high 3.8 months after the low.
- Its worst full calendar year was 2022 (-5.4%); its best was 2020 (+5.4%).
- The deepest fall in its price history was 14.8% (Mar 9, 2020 to Mar 20, 2020), recovered by Jul 14, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +1.8% | — |
| 2025 | +3.1% | +3.10% |
| 2024 | +2.1% | +1.98% |
| 2023 | +2.9% | +2.91% |
| 2022 | -5.4% | -5.34% |
| 2021 | -0.2% | -0.20% |
| 2020 | +5.4% | +5.47% |
| 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 12.3% over that stretch · deepest drop along the way 14.8%, back to its old high 3.8 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 7.3% over that stretch · deepest drop along the way 7.8%, back to its old high 28.8 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.4600 | |
| 2025 | $0.6000 | +5.3% |
| 2024 | $0.5700 | +35.7% |
| 2023 | $0.4200 | +90.9% |
| 2022 | $0.2200 | +43.8% |
| 2021 | $0.1530 | -40.2% |
| 2020 | $0.2560 |
What's inside
As of Jul 31, 2026, the fund held 695 securities; the ten largest made up 4.18% of assets, and 51.98% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| Black Belt Energy Gas District Bonds and notes | 0.63% | |
| Metropolitan Transportation Authority Bonds and notes | 0.63% | |
| State of California Bonds and notes | 0.46% | |
| State of Illinois Bonds and notes | 0.43% | |
| State of California Bonds and notes | 0.37% | |
| State of Maryland Bonds and notes | 0.35% | |
| Orlando Utilities Commission Bonds and notes | 0.35% | |
| Johnson County Unified School District No. 229 Blue Valley Bonds and notes | 0.35% | |
| Texas Department of Transportation State Highway Fund Bonds and notes | 0.31% | |
| Metropolitan Transportation Authority Bonds and notes | 0.30% | |
| County of Montgomery Bonds and notes | 0.29% | |
| State of Mississippi Bonds and notes | 0.27% | |
| Hampton Roads Sanitation District Bonds and notes | 0.27% | |
| Triborough Bridge & Tunnel Authority Bonds and notes | 0.26% | |
| County of Maui Bonds and notes | 0.26% |
By country
United States 47.45%By issuer
Municipalities 47.45%The bonds mature in 1 years on average (weighted by size), with an average coupon of 4.74%.
Source: N-PORT holdings report as of Jul 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2026, investors withdrew a net $6.4M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.20%, +0.22%, +0.20%.
How it works
IBMO tracks the S&P AMT-Free Municipal Series Callable-Adjusted Dec 2026 Index from S&P Dow Jones Indices. The index holds investment-grade, tax-exempt bonds from US states, the District of Columbia, and local governments and agencies. Their interest is exempt from federal income tax and the alternative minimum tax (AMT), a parallel tax system that catches some higher earners. Puerto Rico and US territories are excluded. Each bond needs a rating of at least BBB- or Baa3 and at least $2 million outstanding. As of October 31, 2025, the index had 12,855 issues.
This is a term index. Non-callable bonds must mature after December 31, 2025 and before December 2, 2026. Callable bonds, which the issuer can repay early, qualify only if their call or maturity dates fit that window. In the five years before maturity, monthly rebalances removed bonds maturing outside the target year. Since January 1, 2026, no index bond matures after December 2, 2026. Cash from maturing or pre-refunded bonds (bonds already set to be repaid at an earlier call date) goes into tax-exempt cash equivalents.
BlackRock's adviser, BFA, uses representative sampling. That means it holds a sample of bonds that matches the index's duration, credit quality and yield instead of every issue. It normally keeps at least 80% in index bonds, except in the fund's final months. Shares are created and redeemed mainly for cash, which can force bond sales. Cash builds up as bonds mature: it was about 52% of assets as of July 31, 2026.
What it really costs
- IBMO charges 0.18% a year, versus an average of 0.11% for the similar funds below (5th of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $14 in the first year and $— over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| IBMO | $14 | $— | $— | $— |
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
It holds short, high-quality tax-exempt bonds that mature by early December 2026, so it acts more like a place to park money than a long-term growth or income holding.
IBMO can hold tax-exempt money that will be needed around its December 2026 end date. Short munis are still not riskless. The fund fell 14.8% between March 9 and March 20, 2020, and recovered by July 14, 2020, about 3.8 months later. In 2022 it dropped 7.8%, took until February 24, 2025 to recover, and lost 5.34% for the calendar year. Anyone forced to sell during those stretches would have locked in losses. It launched in April 2019, so it has no 2008 record. Its trailing 12-month yield was 2.38% as of October 27, 2026, paid monthly. That yield may drift toward money market rates as bonds mature. The expense ratio is 0.18%, about $14 in the first year on $10,000 under the SEC's standard example. 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 wanting tax-exempt muni exposure for cash needed around December 2026, since the fund is designed to wind down by then.
- Higher-bracket savers seeking federally tax-exempt monthly income that also avoids the AMT; the trailing yield was 2.38% as of October 27, 2026.
- Those who want a known end date and a portfolio spread thin: the top 10 holdings were just 4.18% of assets as of July 31, 2026.
Look elsewhere if
- Anyone seeking a long-term bond holding: the fund nears its December 2026 termination, and about 52% of assets were cash as of July 31, 2026.
- Cost-focused investors: the 0.18% expense ratio is above the 0.11% average for similar funds and well above SUB's 0.07%.
- Investors in low tax brackets or tax-deferred accounts such as IRAs, where the federal tax exemption on muni interest adds little value.
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 |
|---|---|---|---|---|---|
| IBMO this fund | 1 yrs | 0.18% | $576.0M | +2.6% | +3.5% |
| JMST JPMorgan Ultra-Short Municipal Income ETF | 2.7 yrs | 0.18% | $7.36B | +2.5% | +3.3% |
| SUB iShares Short-Term National Muni Bond ETF | 3.3 yrs | 0.07% | $11.64B | +2.1% | +3.3% |
| SHM SPDR Nuveen Bloomberg Short Term Municipal … | 6.2 yrs | 0.2% | $3.47B | +1.2% | +3.3% |
| CMF iShares California Muni Bond ETF | 12.4 yrs | 0.08% | $4.63B | -0.6% | +3.8% |
| ITM VanEck Intermediate Muni ETF | 12.4 yrs | 0.18% | $2.12B | -0.3% | +4.6% |
| MUB iShares National Muni Bond ETF | 13.5 yrs | 0.05% | $45.38B | -0.2% | +3.7% |
| VTEB Vanguard Tax-Exempt Bond ETF | 14.5 yrs | 0.03% | $48.52B | +0.1% | +4.4% |
Questions investors ask
When does IBMO mature?
IBMO is built around December 2, 2026. Its index holds only bonds expected to mature or be redeemed before that date. Since January 1, 2026, no index bond has had an effective maturity later than that. In its final months, the fund may hold less than its usual 80% minimum in index bonds and more cash. Term funds like this are designed to wind down and return their remaining assets to shareholders at the end.
Is IBMO tax-free?
Its interest is mostly free of federal tax. The index includes only bonds whose interest is exempt from federal income tax and the federal alternative minimum tax (AMT), and it excludes Puerto Rico and US territories. State tax is different. The bonds come from many states, including California, Illinois, Maryland and Texas, so holders may owe state income tax on interest from out-of-state bonds, depending on their state's rules. Gains from selling shares can also be taxable.
Does IBMO pay monthly dividends?
Yes, IBMO pays income monthly. It paid about $0.61 per share over the 12 months to October 27, 2026, a trailing yield of 2.38%. That income may shrink as the end date nears. The prospectus warns that the yield may move toward money market rates as bonds mature and the money sits in cash. As of July 31, 2026, cash and cash equivalents made up about 52% of assets.
IBMO vs JMST: what's the difference?
Both are short-term muni ETFs that charge 0.18% a year. IBMO tracks an index with a fixed end date of December 2, 2026, and its bonds had an average of about 1 year to maturity. JMST, the JPMorgan Ultra-Short Municipal Income ETF, averaged 2.7 years. As of October 27, 2026, IBMO returned 2.6% over one year and 3.5% a year over three years. JMST returned 2.5% and 3.3%. JMST is much larger, at about $7.4 billion in net assets.
Can IBMO lose money?
Yes. Its worst calendar year was 2022, when it lost 5.34%, and its worst quarter was a 5.06% loss in the quarter ending March 31, 2022. Its deepest drop was 14.8% in March 2020, which it recovered by July 14, 2020. The year to October 27, 2026 was much calmer: volatility was 1.1% and the largest drop was 0.3%. Changes in interest rates and issuers failing to pay remain risks.