iShares iBonds Dec 2027 Term Muni Bond ETF

iShares iBonds Dec 2027 Term Muni Bond ETF (IBMP) holds investment-grade municipal bonds that mature before December 2, 2027. Their interest is exempt from federal income tax. The fund itself is set up to wind down around that date, much like a bond. That fixed end date sets it apart from open-ended short-term muni funds such as SUB. Its 0.18% expense ratio is higher than SUB's 0.07%.

• Over the year to Oct 27, 2026, IBMP returned +2.4%, 2nd of 8 among similar funds.
• Its 5-year annualized return was +0.8%.
• In the 2020 COVID crash it fell 15.2% and regained its old high 3.8 months after the low.
• Its worst full calendar year was 2022 (-6.1%); its best was 2020 (+6.1%).
• The deepest fall in its price history was 15.2% (Mar 9, 2020 to Mar 20, 2020), recovered by Jul 14, 2020.

As of Jul 31, 2026, the fund held 1,845 securities; the ten largest made up 3.61% of assets.

The bonds mature in 1.4 years on average (weighted by size), with an average coupon of 4.75%.

• Over the three months to Jul 31, 2026, investors added a net $24.1M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.21%, +0.32%, +0.03%.

IBMP tracks the S&P AMT-Free Municipal Series Callable-Adjusted Dec 2027 Index from S&P Dow Jones Indices. The index holds bonds from US states, the District of Columbia, and local governments and agencies. Their interest is exempt from federal income tax and from the federal alternative minimum tax (AMT), a separate tax calculation that can catch some municipal interest. Bonds from Puerto Rico and other US territories are excluded. Each bond needs an investment-grade rating of at least BBB- or Baa3 and at least $2 million outstanding. It must also mature after December 31, 2026 and before December 2, 2027. Callable bonds, which issuers can repay early, qualify only under set call-date rules.

BlackRock uses representative sampling. Instead of buying all 13,407 index issues (as of October 31, 2025), it holds a sample matched on duration (sensitivity to interest rates), credit quality and yield. As of July 31, 2026, the fund held 1,845 bonds averaging 1.4 years to maturity. The 10 largest holdings made up just 3.61% of assets. State of Michigan and State of California bonds led the list at about 0.44% each.

When bonds mature or are paid off early, the cash goes into tax-exempt cash equivalents. It is not rolled into longer bonds. So as the fund nears its planned end around December 2027, its yield drifts toward money market rates. Monthly payouts vary over time.

• IBMP 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 $18 in the first year and $— over 10 years (assuming a 5% annual return).

Its investment-grade, tax-exempt bonds averaged 1.4 years to maturity as of July 31, 2026, so price swings have usually been small, though not always.

IBMP could hold tax-exempt money set aside for spending around late 2027, much as an investor might buy a single bond due then. It launched in 2019, so it has no record from 2008. In the 2020 COVID crash it fell 15.2% between March 9 and March 20, 2020. That was a sharp drop for short-term bonds, but it recovered by July 14, 2020. In the 2022 bear market it lost 9% and took about 32 months, until June 11, 2025, to recover. Its worst calendar year was 2022, at -6.0%. Anyone who had to sell during those stretches would have locked in losses. It paid a 2.49% yield over the 12 months to October 27, 2026, in monthly installments. Its 0.18% expense ratio is above the 0.11% peer average. 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).