At a glance
IBTI charges 0.07% a year, below the 0.12% average of the 7 funds most like it (the 2nd cheapest of 8). It has $1.92B in assets, the 8th largest of that group; it paid 3.78% of its price in distributions over the past 12 months, monthly. Over the past year it returned +1.6% with distributions reinvested, 7th of those 8 funds; over three years it returned +4.7% a year. At its worst it fell 12.6% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 35 months after the low. Its ten largest positions make up 26.8% of the fund, out of 45 in all.
The short version
The iShares iBonds Dec 2028 Term Treasury ETF (IBTI) holds US Treasury notes that mature in 2028. Unlike most bond funds, it is set to close on or about December 15, 2028, and pay its remaining cash to shareholders. That end date makes it behave more like a single bond than an ordinary bond fund. Its 0.07% expense ratio is below the 0.12% average for similar Treasury funds, but Vanguard's VGSH charges 0.03%.
Price history
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IBTI +1.6% 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 | |
|---|---|---|---|---|---|---|
| IBTI official prospectus, to Dec 31, 2025 | — | +6.27% | — | -0.52% | — | +0.42% |
| ICE BofA US Broad Market Index index, same period | — | +7.15% | — | -0.42% | — | +0.36% |
| IBTI price data to Oct 27, 2026 | +1.0% | +1.6% | +4.7% | +0.4% | — | +0.3% |
- Over the year to Oct 27, 2026, IBTI returned +1.6%, 7th of 8 among similar funds.
- Its 5-year annualized return was +0.4%.
- Its worst full calendar year was 2022 (-11.3%); its best was 2025 (+6.1%).
- The deepest fall in its price history was 18.5% (Aug 4, 2020 to Oct 20, 2022), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +1.0% | — |
| 2025 | +6.1% | +6.27% |
| 2024 | +2.4% | +2.46% |
| 2023 | +4.6% | +4.62% |
| 2022 | -11.3% | -11.36% |
| 2021 | -3.5% | -3.49% |
| 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 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 12.1% over that stretch · deepest drop along the way 12.6%, back to its old high 35 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.6203 | |
| 2025 | $0.8600 | +2.4% |
| 2024 | $0.8400 | +18.3% |
| 2023 | $0.7100 | +91.9% |
| 2022 | $0.3700 | +65.2% |
| 2021 | $0.2240 |
What's inside
As of Jul 31, 2026, the fund held 45 securities; the ten largest made up 26.79% of assets.
| Holding | Weight | |
|---|---|---|
| United States of America Bonds and notes | 4.46% | |
| United States of America Bonds and notes | 2.68% | |
| United States of America Bonds and notes | 2.52% | |
| United States of America Bonds and notes | 2.48% | |
| United States of America Bonds and notes | 2.46% | |
| United States of America Bonds and notes | 2.45% | |
| United States of America Bonds and notes | 2.44% | |
| United States of America Bonds and notes | 2.44% | |
| United States of America Bonds and notes | 2.43% | |
| United States of America Bonds and notes | 2.42% | |
| United States of America Bonds and notes | 2.40% | |
| United States of America Bonds and notes | 2.40% | |
| United States of America Bonds and notes | 2.39% | |
| United States of America Bonds and notes | 2.39% | |
| United States of America Bonds and notes | 2.38% |
By country
United States 98.95%By issuer
US Treasury 98.95%The bonds mature in 1.9 years on average (weighted by size), with an average coupon of 3.1%.
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 $261.8M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.07%, +0.06%, +0.15%.
How it works
IBTI tracks the ICE 2028 Maturity US Treasury Index. BlackRock Fund Advisors (BFA) manages it. The index holds fixed-rate Treasury notes and bonds due between January 1 and December 15, 2028. Each issue needs at least $1 billion outstanding, not counting the amount the Federal Reserve holds. The index leaves out inflation-linked Treasuries, Treasury bills and STRIPS (bonds split into separate interest and principal pieces). Each bond is weighted by its market value. The index rebalances on the last calendar day of each month. Interest received during the month sits in cash until then and is reinvested at the rebalance.
The fund uses "representative sampling": it owns a selection of bonds that together resemble the index, rather than every single one. At least 80% of its assets must be in index bonds and at least 90% in Treasuries. As of July 31, 2026, it held 45 issues. The largest was 4.5% of assets, the top ten made up 26.8% and cash was 0.3%.
In the final six months, cash from maturing bonds goes into bonds still in the index or into cash equivalents. By December 15, 2028, the fund should be almost entirely cash. It will then close and pay out its net assets. It does not promise any set amount at the end, and the Board can push back the closing date.
What it really costs
- IBTI charges 0.07% a year, versus an average of 0.12% for the similar funds below (2nd of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $7 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 |
|---|---|---|---|---|
| IBTI | $7 | $— | $— | $— |
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 only US Treasuries with a fixed end date, so it can work as one dated rung in a bond ladder that pays out cash around December 15, 2028.
IBTI launched on February 25, 2020, so it has no record from 2008 or the full 2020 crash. When rates rose in 2022, it fell 12.6% between January 3 and September 27, 2022, and took 35 months to recover. Its worst calendar year was 2022, at -11.36%. Its deepest drop was 18.5%, from August 2020 to October 2022, and it had not fully recovered as of October 27, 2026. Anyone who sold in 2022 locked in a loss. As the bonds get close to maturing, price swings shrink, but income may fall toward money market rates. The trailing 12-month yield was 3.78% as of October 27, 2026, paid monthly. In the SEC's standard example, first-year costs come to $7 on a $10,000 investment. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors building a Treasury ladder who want cash back around December 15, 2028, to cover a known expense or a gap in income.
- Cost-conscious bond buyers: the 0.07% expense ratio is below the 0.12% average for similar funds and SHY's 0.15%.
- People who want monthly income backed only by the US Treasury, with a trailing yield of 3.78% as of October 27, 2026.
Look elsewhere if
- Investors who want a short-term Treasury fund to hold indefinitely. SHY and VGSH keep replacing their bonds instead of closing, and VGSH charges 0.03%.
- Anyone who may need to sell early and can't handle price swings: IBTI fell 12.6% in 2022 and took 35 months to recover.
- Those seeking inflation protection: the index excludes inflation-linked Treasuries, so rising prices can erode the value of its fixed payments.
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 |
|---|---|---|---|---|---|
| IBTI this fund | 1.9 yrs | 0.07% | $1.92B | +1.6% | +4.7% |
| SHY iShares 1-3 Year Treasury Bond ETF | 1.9 yrs | 0.15% | $25.91B | +1.7% | +3.9% |
| VGSH Vanguard Short-Term Treasury ETF | 1.9 yrs | 0.03% | $39.20B | +2.2% | +4.2% |
| USFR WisdomTree Floating Rate Treasury Fund | 1.5 yrs | 0.15% | $18.76B | +4.1% | +4.6% |
| SHV iShares Short Treasury Bond ETF | 0.3 yrs | 0.15% | $20.97B | +3.3% | +4.3% |
| BIL SPDR Bloomberg 1-3 Month T-Bill ETF | 0.2 yrs | 0.1356% | $47.08B | +3.3% | +4.3% |
| SGOV iShares 0-3 Month Treasury Bond ETF | 0.1 yrs | 0.09% | $105.98B | +3.4% | +4.4% |
| IEI iShares 3-7 Year Treasury Bond ETF | 4.7 yrs | 0.15% | $17.68B | -0.4% | +4.0% |
Questions investors ask
When does IBTI mature?
IBTI is set to close on or about December 15, 2028. In its last six months, cash from maturing bonds goes into remaining index bonds or cash equivalents, so by that date the fund should hold almost all cash. It then closes and pays its net assets to the shareholders of that time. It doesn't promise any set amount at the end, and its Board can push back the closing date.
Does IBTI pay monthly dividends?
Yes. IBTI pays income monthly. Over the 12 months to October 27, 2026, it paid about $0.83 per share, a trailing yield of 3.78%. The income comes from interest on its Treasury notes, which had an average coupon of 3.1% as of July 31, 2026. The prospectus warns that the yield may drift toward money market rates as 2028 approaches.
What's the difference between IBTI and VGSH?
The main difference is that IBTI closes and VGSH doesn't. Both held Treasuries with an average of 1.9 years to maturity, but IBTI plans to close around December 15, 2028, while VGSH keeps buying new short-term bonds. VGSH charges 0.03% against IBTI's 0.07%, and it is much larger: $39.2 billion versus $1.92 billion. VGSH returned 2.1% over one year as of October 29, 2026; IBTI returned 1.6% as of October 27, 2026.
Can you lose money in IBTI?
Yes. Its bonds are backed by the US government, but their prices fall when interest rates rise. IBTI lost 11.36% in 2022, and its worst quarter was -5.63%, in the quarter ending March 31, 2022. Its average annual return over five years was -0.52% as of December 31, 2025. As maturity gets closer, its price becomes less sensitive to rate changes.
What does IBTI hold?
IBTI holds US Treasury notes due in 2028. As of July 31, 2026, it owned 45 issues, with 98.95% of assets in Treasuries and 0.3% in cash. The largest single note was 4.5% of the fund, and the top ten made up 26.8%. The average time to maturity was 1.9 years. It held no derivatives and no inflation-linked bonds.