At a glance
IBMQ charges 0.18% a year, above the 0.11% average of the 7 funds most like it (the 5th cheapest of 8). It has $660.6M in assets, the 8th largest of that group; it paid 2.44% of its price in distributions over the past 12 months, monthly. Over the past year it returned +2.0% with distributions reinvested, 3rd of those 8 funds; over three years it returned +3.9% a year. At its worst it fell 15.8% in the 2020 crash (S&P 500: 33.7%) and 10.4% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 4 months and 33 months after the lows. Its ten largest positions make up 4.2% of the fund, out of 2,776 in all.
The short version
The iShares iBonds Dec 2028 Term Muni Bond ETF (IBMQ) holds investment-grade, tax-exempt US municipal bonds that mature or are redeemed before December 2, 2028, and is built to wind down around then. That fixed end date makes it behave more like a single bond with a maturity date than a typical muni fund. Its 0.18% expense ratio is above the 0.11% average of similar funds, and it is the smallest of its peer group.
Price history
The interactive chart needs JavaScript.
IBMQ +2.0% 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 | |
|---|---|---|---|---|---|---|
| IBMQ official prospectus, to Dec 31, 2025 | — | +3.96% | — | +0.26% | — | +2.01% |
| S And P Municipal Bond Index index, same period | — | +4.34% | — | +0.97% | — | +2.09% |
| IBMQ price data to Oct 27, 2026 | +1.3% | +2.0% | +3.9% | +0.8% | — | +2.0% |
- Over the year to Oct 27, 2026, IBMQ returned +2.0%, 3rd of 8 among similar funds.
- Its 5-year annualized return was +0.8%.
- In the 2020 COVID crash it fell 15.8% and regained its old high 3.7 months after the low.
- Its worst full calendar year was 2022 (-6.7%); its best was 2020 (+6.8%).
- The deepest fall in its price history was 15.8% (Mar 9, 2020 to Mar 23, 2020), recovered by Jul 14, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +1.3% | — |
| 2025 | +4.0% | +3.96% |
| 2024 | +0.8% | +0.75% |
| 2023 | +4.0% | +3.97% |
| 2022 | -6.7% | -6.77% |
| 2021 | -0.3% | -0.23% |
| 2020 | +6.8% | +6.78% |
| 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 13.9% over that stretch · deepest drop along the way 15.8%, back to its old high 3.7 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 9.3% over that stretch · deepest drop along the way 10.4%, back to its old high 33.1 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.4700 | |
| 2025 | $0.6100 | +1.7% |
| 2024 | $0.6000 | +20.0% |
| 2023 | $0.5000 | +56.3% |
| 2022 | $0.3200 | +16.5% |
| 2021 | $0.2747 | -12.5% |
| 2020 | $0.3138 |
What's inside
As of Jul 31, 2026, the fund held 2,776 securities; the ten largest made up 4.19% of assets.
| Holding | Weight | |
|---|---|---|
| New Jersey Economic Development Authority Bonds and notes | 0.54% | |
| California Infrastructure & Economic Development Bank Bonds and notes | 0.51% | |
| Metropolitan Transportation Authority Bonds and notes | 0.48% | |
| Commonwealth of Pennsylvania Bonds and notes | 0.42% | |
| City of Dallas Bonds and notes | 0.40% | |
| Kentucky Public Energy Authority Bonds and notes | 0.39% | |
| State of California Bonds and notes | 0.38% | |
| State of New Jersey Bonds and notes | 0.37% | |
| New York City Transitional Finance Authority Building Aid Bonds and notes | 0.36% | |
| State of Illinois Bonds and notes | 0.33% | |
| City of Minneapolis Bonds and notes | 0.32% | |
| Missouri State Board of Public Buildings Bonds and notes | 0.31% | |
| North Texas Tollway Authority Bonds and notes | 0.30% | |
| County of Clark Department of Aviation Bonds and notes | 0.30% | |
| City of Charlotte Water & Sewer System Bonds and notes | 0.30% |
By country
United States 98.92%By issuer
Municipalities 98.92%The bonds mature in 2.4 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 added a net $26.8M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.17%, +0.37%, -0.18%.
How it works
IBMQ, sponsored by BlackRock, tracks the S&P AMT-Free Municipal Series Callable-Adjusted Dec 2028 Index. The index holds investment-grade 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 some higher earners owe. Puerto Rico and US territories are excluded. Each bond needs a rating of at least BBB- or Baa3 and at least $2 million outstanding. Bonds must mature between January 1 and December 1, 2028. Callable bonds, which the issuer can repay early, qualify under set rules. The index had 12,167 issues as of October 31, 2025.
BlackRock doesn't buy every bond in the index. It uses representative sampling: it holds a subset picked to match the index's duration (how sensitive prices are to interest rates), credit quality and yield. As of July 31, 2026, the fund held 2,776 bonds, and the ten largest made up just 4.19% of assets. Portfolio turnover was 3%.
The index rebalances monthly. Starting five years before 2028, it has been dropping bonds that mature outside the target year. From January 1, 2028, it will hold nothing maturing after December 2, 2028. When bonds mature or are pre-refunded (paid off early from money set aside for that), the cash goes into tax-exempt cash equivalents. As a result, the yield may slide toward money market rates in the final months. The fund isn't designed to protect against inflation.
What it really costs
- IBMQ 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).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| IBMQ | $18 | $— | $— | $— |
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
Its short-dated, investment-grade municipal bonds and 2028 end date tend to make it move less than stocks or longer bond funds, though it can still fall.
As of July 31, 2026, IBMQ's bonds averaged 2.4 years to maturity, so its price reacts less to rate changes than long-term muni funds do. It has still lost money in rough patches. It launched in 2019, so it has no 2008 record. In March 2020 it fell 15.8% in two weeks, then recovered by July 14, 2020. From January to September 2022 it fell 10.4% and took about 33 months to recover, until July 2025. Its worst calendar year was 2022, at -6.77%. Anyone forced to sell in late 2022 would have locked in a loss. It pays monthly, and its trailing yield was 2.44% as of October 27, 2026. In the SEC's $10,000 example, the cost is $18 for one year. 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 with taxable accounts seeking monthly income exempt from federal income tax and the AMT from investment-grade municipal bonds.
- People with a known spending need around late 2028 who want a broad basket of bonds that all mature on roughly that schedule.
- Those who want wide diversification: 2,776 municipal bonds as of July 31, 2026, with the ten largest totaling just 4.19%.
Look elsewhere if
- Cost-focused investors: IBMQ's 0.18% expense ratio is above the 0.07% charged by the iShares Short-Term National Muni Bond ETF (SUB).
- Investors holding bonds in an IRA or 401(k), where the federal tax exemption on muni interest adds little value.
- Anyone wanting long-term, ongoing bond exposure or inflation protection: the fund is built to wind down in 2028 and isn't designed to hedge inflation.
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 |
|---|---|---|---|---|---|
| IBMQ this fund | 2.4 yrs | 0.18% | $660.6M | +2.0% | +3.9% |
| SUB iShares Short-Term National Muni Bond ETF | 3.3 yrs | 0.07% | $11.64B | +2.1% | +3.3% |
| JMST JPMorgan Ultra-Short Municipal Income ETF | 2.7 yrs | 0.18% | $7.36B | +2.5% | +3.3% |
| SHM SPDR Nuveen Bloomberg Short Term Municipal … | 6.2 yrs | 0.2% | $3.47B | +1.2% | +3.3% |
| ITM VanEck Intermediate Muni ETF | 12.4 yrs | 0.18% | $2.12B | -0.3% | +4.6% |
| CMF iShares California Muni Bond ETF | 12.4 yrs | 0.08% | $4.63B | -0.6% | +3.8% |
| 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
What happens when IBMQ matures in 2028?
The fund is built to wind down as its bonds mature or are redeemed. From January 1, 2028, its index will hold only bonds maturing before December 2, 2028. Cash from bonds that mature goes into tax-exempt cash equivalents, so the yield may drop toward money market rates near the end. The prospectus says that holding to maturity is expected to produce total returns similar to owning a comparable group of municipal bonds directly. Payouts will vary along the way.
Does IBMQ pay monthly dividends?
Yes, IBMQ pays monthly. In the 12 months to October 27, 2026, it paid about $0.62 per share, a trailing yield of 2.44%. The income comes from municipal bonds whose interest is exempt from federal income tax and the AMT. Payments vary from month to month. The prospectus warns that the yield may fall toward money market rates in the fund's final months, as more of its bonds mature and the money sits in cash equivalents.
IBMQ vs SUB: what's the difference?
SUB, the iShares Short-Term National Muni Bond ETF, is the closest match by maturity and issuer mix. SUB charges 0.07% a year; IBMQ charges 0.18%. SUB had $11.6 billion in net assets as of August 31, 2026, while IBMQ had $660.6 million as of July 31, 2026. As of October 27, 2026, SUB returned 2.1% over one year and 3.3% a year over three. IBMQ returned 2.0% and 3.9%. IBMQ is also built to wind down in 2028.
Is IBMQ income tax-free?
IBMQ's interest income is designed to be exempt from federal income tax and the federal alternative minimum tax, because its index includes only bonds that qualify. That doesn't make it entirely tax-free. Selling shares at a gain can mean capital gains tax. The fund usually handles creations and redemptions in cash, which can force it to sell bonds and realize gains. Tax-exempt income also adds little when the fund sits inside an IRA or 401(k).
How much did IBMQ lose in 2022?
IBMQ lost 6.77% in calendar 2022, its worst full year, according to its prospectus. Its worst quarter was the first quarter of 2022, at -6.37%. At its deepest point, it was down 10.4% from January 3 to September 30, 2022. It didn't get back to that peak until July 3, 2025, about 33 months later. That's a long recovery for a short-term bond fund, and something to weigh if you might need to sell in a bad year.