The iShares iBonds Oct 2032 Term TIPS ETF (OTCMKTS: IBII) is a fixed-maturity exchange-traded fund designed to provide investors with inflation protection through exposure to U.S. Treasury Inflation-Protected Securities (TIPS) that mature in October 2032. As part of BlackRock’s iShares iBonds series, IBII offers a transparent, rules-based strategy that seeks to deliver the principal preservation and inflation adjustment characteristics of Treasury securities, combined with the liquidity and ease of trading inherent to ETFs. The fund’s objective is to track the performance of an index comprising TIPS issues with a defined maturity date, providing a predictable maturity event for investors seeking to coincide with specific liability horizons.
IBII allocates its portfolio exclusively to U.S. government-issued inflation-protected bonds, with principal and interest payments adjusted according to changes in the Consumer Price Index. Income distributions are made on a monthly basis, reflecting the interest accrued on the underlying TIPS holdings. By holding securities that mature in the same month and year, the ETF offers a known end date, allowing investors to plan cash flows and reinvestment strategies with greater certainty. This fixed-term structure distinguishes it from open-ended TIPS funds and may appeal to those with a defined investment time frame.
Launched by BlackRock in cooperation with the firm’s global iShares fixed income team, IBII benefits from the operational expertise and scale of one of the world’s largest asset managers. BlackRock’s oversight ensures rigorous credit review, ongoing portfolio monitoring and adherence to stringent risk-management protocols. The ETF is listed on OTC Markets under the ticker IBII, providing U.S. investors with access to the growing TIPS market in a cost-efficient structure that leverages BlackRock’s trading capabilities and market-making network.
Serving a broad range of investors—from individual retirement accounts to institutional portfolios—IBII is designed for use as a core inflation-hedging sleeve or as a component in laddered fixed-income strategies. Its focus on a single maturity date aligns with planning objectives such as funding future liabilities or targeting a specific investment horizon. As part of the iShares lineup, the ETF underscores BlackRock’s commitment to offering specialized, low-cost solutions that meet evolving income and inflation-protection needs in today’s bond market.
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