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August 1, 2025 |
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Summary Prospectus |
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iShares Preferred and Income Securities ETF | PFF | Nasdaq
Before you
invest, you may want to review the Fund’s prospectus, which contains more information about the Fund and its risks. You can find the Fund’s prospectus
(including amendments and supplements) and other information about the Fund, including the Fund’s statement of additional information and shareholder reports, online at https://www.blackrock.com/prospectus. You can also get this information at no cost by calling 1-800-iShares (1-800-474-2737) or by sending an e-mail request to
iSharesETFs@blackrock.com, or from your financial professional. The Fund’s prospectus and statement of additional information, both dated August 1, 2025, as amended and supplemented from time to time, are incorporated by reference into (legally made a part of) this Summary Prospectus. Information on the Fund’s net asset value, market price, premiums and discounts, and bid-ask spreads can be found at
https://www.iShares.com.
The Securities and Exchange Commission has not approved or disapproved these securities or passed
upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.
iSHARES® PREFERRED AND INCOME SECURITIES ETF
Ticker: PFFStock Exchange: Nasdaq
Investment Objective
The iShares Preferred and Income Securities ETF (the “Fund”) seeks to track the investment
results of an index composed of U.S. dollar-denominated preferred and hybrid securities.
Fees and Expenses
The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. The investment advisory agreement between iShares Trust (the “Trust”) and BlackRock Fund Advisors
(“BFA”) (the “Investment Advisory
Agreement”) provides that BFA
will pay all operating expenses of the Fund, except: (i) the management fees, (ii) interest expenses, (iii) taxes, (iv) expenses incurred with respect to the acquisition and
disposition of portfolio securities and the execution of portfolio transactions, including brokerage commissions, (v) distribution fees or expenses, and (vi) litigation expenses
and any extraordinary expenses.
You may pay other
fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.
| Annual Fund
Operating Expenses (ongoing expenses that you pay each year as a
percentage of the value of your investments)1 | |||
| Management
Fees |
Distribution and Service (12b-1)
Fees |
Other
Expenses2 |
Total
Annual Fund
Operating
Expenses |
| 0.45% |
None |
0.00% |
0.45% |
1Operating expenses paid by BFA under the Investment Advisory Agreement exclude acquired fund fees and expenses, if any.
2The amount rounded to 0.00%.
Example. This Example is intended to help you compare the cost of owning shares of the Fund with the
cost of investing in other funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your shares at the end of those
periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
| 1
Year |
3
Years |
5
Years |
10
Years |
| $46 |
$144 |
$252 |
$567 |
S-1
Portfolio Turnover. The Fund may pay transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are
not reflected in the Annual Fund Operating Expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund's portfolio turnover rate was 20% of the average value of its
portfolio.
Principal Investment Strategies
The Fund seeks to track the investment results of the ICE Exchange-Listed Preferred & Hybrid Securities Index (the “Underlying Index”), which measures the
performance of a select group of exchange-listed, U.S. dollar-denominated preferred securities, hybrid
securities and convertible preferred securities listed on the New York Stock Exchange (“NYSE”) or the Nasdaq Capital Market. The Underlying Index includes issuances of preferred stocks with amounts outstanding over $100 million,
convertible preferred stock with at least $50 million face amount outstanding, and hybrid securities with
at least $250 million face amount outstanding, that meet minimum maturity and other requirements, as
applicable, as determined by ICE Data Indices, LLC (the “Index Provider” or “ICE Data”).
In
general, preferred stock is a class of equity security that pays a specified dividend that must be paid before any dividends can be paid to common stockholders and takes precedence over common stock in the event of a company’s liquidation. In
general, a “hybrid” security refers to a security which combines both debt and equity characteristics. In general, hybrid securities included in the Underlying Index, like traditional preferred
stock, have preference over the common stock within an issuer’s capital structure, and are issued and
traded in a similar manner to traditional preferred stock. Like debt securities and preferred stock (but
unlike common stock), issuers of hybrid securities included in the Underlying Index may make fixed, periodic
payments to the holders of such securities. Like preferred stock, issuers of hybrid securities included in
the Underlying Index have the ability to defer dividend payments and to extend such securities’
maturity dates.
Although preferred stocks represent a partial ownership
interest in a company, preferred stocks generally do not carry voting rights. Preferred stocks have
economic characteristics similar to fixed-income securities. Preferred stocks and hybrid securities
generally are issued with a fixed par value and pay dividends based on a percentage of that par value at a
fixed or variable rate.
Additionally, preferred stocks and hybrid
securities often have a liquidation value that generally equals the original purchase price of such
security at the date of issuance. The Underlying Index may include many different categories of preferred stock and hybrid securities, such as floating and fixed rate preferreds, fixed-to-floating rate securities, callable preferreds,
convertible preferreds, cumulative and non-cumulative preferreds, certain capital securities, trust
preferreds or various other preferred stock and hybrid securities. The total allocation to an individual issuer across the entire Underlying Index is limited to 4.75%. The Underlying Index uses a market capitalization weighted
methodology subject to certain constraints and is rebalanced monthly.
The Underlying Index may include large-, mid- or small-capitalization companies and includes preferred stocks and hybrid securities of non-U.S. issuers. As of March 31, 2025, a significant
portion of the Underlying Index is represented by securities of
companies in the financials industry or
sector. The components of the Underlying Index are likely to change over time.
BFA uses an indexing approach to try to achieve the Fund’s investment
objective. The Fund does not try to “beat” the index it tracks and does not seek
temporary defensive positions when markets decline or appear overvalued.
Indexing may eliminate the chance that the Fund will substantially outperform the
Underlying Index but also may reduce some of the risks of active management, such as poor security selection.
Indexing seeks to achieve lower costs and better after-tax performance by aiming to keep portfolio turnover
low in comparison to actively managed investment companies.
BFA uses a representative sampling indexing strategy to manage the Fund. “Representative sampling” is an indexing strategy that involves investing in a representative sample of securities that collectively has an investment profile similar to that of an applicable underlying index. The securities selected are
expected to have, in the aggregate, investment characteristics (based on factors such as market
capitalization and industry weightings), fundamental characteristics (such as return variability and yield)
and liquidity measures similar to those of an applicable underlying index. The Fund may or may not hold all
of the securities in the Underlying Index.
The Fund generally will invest at least 80% of its assets in the component securities of its Underlying Index and may
invest up to 20% of its assets in certain futures, options and swap contracts, cash and cash equivalents,
including shares of money market funds advised by BFA or its affiliates, as well as in securities not
included in the Underlying Index, but which BFA believes will help the Fund track the Underlying Index.
Cash and cash equivalent investments associated with a derivative position will be treated as part of that
position for the purposes of calculating the percentage of investments included in the Underlying Index. The
Fund seeks to track the investment results of the Underlying Index before fees and expenses of the
Fund.
The Fund may lend securities representing up to one-third of the
value of the Fund's total assets (including the value of any collateral received).
The Underlying Index is owned, maintained and administered by the Index Provider, ICE Data, which is independent of the Fund and BFA. The Index Provider determines the composition and relative weightings of the securities in the Underlying Index and publishes information regarding the market value of
the Underlying Index.
Industry Concentration Policy. The Fund will concentrate its investments (i.e., hold 25% or
more of its total assets) in a particular industry or group of industries to approximately the same extent
that the Underlying Index is concentrated. For purposes of this limitation, securities of the U.S. government
(including its agencies and instrumentalities) and repurchase agreements collateralized by U.S. government
securities are not considered to be issued by members of any industry.
Summary of Principal Risks
As with any investment, you could lose all or part of your investment in the Fund,
and the Fund's performance could trail that of other investments. The Fund is subject to certain risks,
including the principal risks noted below any of which may adversely affect the Fund's net asset value per
share (“NAV”), trading price, yield, total return and ability to meet its investment objective. Certain key risks are prioritized below (with others
S-2
following in alphabetical order), but the
relative significance of any risk is difficult to predict and may change over time. You should review each
risk factor carefully.
Income Risk. The Fund’s income may decline due to falling interest rates or other factors. This can occur because the Fund
may be required to invest in lower-yielding bonds when a bond in the Fund’s portfolio matures, is
near maturity, is called or is prepaid, when bonds in the Underlying Index are substituted, or when the
Fund otherwise needs to purchase additional bonds. The Index Provider’s substitution of bonds in the Underlying Index may occur, for example, when the time to maturity for the bond no longer matches the Underlying Index’s stated
maturity guidelines.
Preferred Stock
Risk. Preferred stocks are subject not only to issuer-specific and market risks generally applicable to equity securities, but also risks associated with fixed-income
securities, such as interest rate risk. A company’s preferred stock, which may pay fixed or variable
rates of return, generally pays dividends only after the company makes required payments to creditors,
including vendors, depositors, counterparties, holders of its bonds and other fixed-income securities. As a
result, the value of a company’s preferred stock will react more strongly than bonds and other debt
to actual or perceived changes in the company’s financial condition or prospects. Preferred stock may be less liquid than many other types of securities, such as common stock, and generally has limited or no voting rights. In
addition, preferred stock is subject to the risks that a company may defer or not pay dividends, and, in
certain situations, may call or redeem its preferred stock or convert it to common stock. An issuer may
decide to call its outstanding preferred stock in various environments based on its assessment of the
relative cost of capital across the company’s capital structure. A market-wide increase in preferred
stock being called may reduce the aggregate size of the preferred stock universe and the number of issuers
with preferred stock outstanding. Such reductions may make it more challenging for the Fund to invest in
the component securities of the Underlying Index, increasing the risk of the Fund being underinvested in
the Underlying Index and thus increasing the risk of tracking error. To the extent that the Fund invests a
substantial portion of its assets in convertible preferred stocks, declining common stock values may also
cause the value of the Fund’s investments to decline.
Hybrid Securities Risk. Hybrid securities are subject to the risks of equity securities and risks of debt securities. The claims of holders of hybrid securities of an issuer are generally
subordinated to those of holders of traditional debt securities in bankruptcy, and thus hybrid securities
may be more volatile and subject to greater risk than traditional debt securities, and may in certain
circumstances even be more volatile than traditional equity securities. At the same time, hybrid securities may not fully participate in gains of their issuer and thus potential returns of such securities are generally more limited than
traditional equity securities, which would participate in such gains.
Equity Securities Risk. Equity securities are subject to changes in value, and their values may be more volatile than those of other asset classes. The value of a security may decline for a number of reasons that may directly relate to the issuer as
well as due to general industry or market conditions. Preferred stock and hybrid securities are
subordinated to debt securities in a company’s capital structure and thus are generally subject to greater risks. In the event of an issuer’s bankruptcy, equity securities have lower priority than debt securities.
Market Risk. The Fund could lose money over short periods due to short-term market movements and over longer periods during more prolonged market downturns. Local, regional or global
events such as
war, acts of terrorism, pandemics or other public health issues, recessions, the prospect or occurrence of a
sovereign default or other financial crisis, or other events could have a significant impact on the
Fund and its investments and could result in increased premiums or discounts to the Fund’s
NAV.
Index-Related Risk. The Index Provider may rely on various sources of information to assess the criteria of components of the Underlying Index, including information that may be
based on assumptions and estimates. Neither the Fund nor BFA can offer assurances that the Index
Provider’s methodology or sources of information will provide an accurate assessment of included
components or will result in the Fund meeting its investment objective. Errors in index data, index
computations or the construction of the Underlying Index in accordance with its methodology may occur, and
the Index Provider may not identify or correct them promptly or at all, which may have an adverse impact on
the Fund and its shareholders. Unusual market conditions or other unforeseen circumstances (such as natural
disasters, political unrest or war) may impact the Index Provider or a third-party data provider and could
cause the Index Provider to postpone a scheduled rebalance. This could cause the Underlying Index to vary
from its normal or expected composition.
Asset Class Risk. The securities and other assets in the Underlying Index or in the Fund’s portfolio may underperform in comparison to financial markets generally, a
particular financial market, another index, or other asset classes.
Authorized Participant Concentration Risk.
An “Authorized
Participant” is a member or
participant of a clearing agency registered with the SEC, which has a written agreement with the Fund or
one of its service providers that allows the Authorized Participant to place orders for the purchase and redemption of creation units (“Creation Units”). Only an Authorized Participant may
engage in creation or redemption transactions directly with the Fund. There are a limited number of institutions that may act as Authorized Participants for the Fund, including on an agency basis on behalf of other market participants. No
Authorized Participant is obligated to engage in creation or redemption transactions. To the extent that
Authorized Participants exit the business or do not place creation or redemption orders for the Fund and no
other Authorized Participant places orders, Fund shares are more likely to trade at a premium or discount to NAV and possibly face trading halts or delisting.
Concentration Risk. The Fund may be susceptible to an increased risk of loss, including losses due to adverse events that affect the Fund’s investments more than the
market as a whole, to the extent that the Fund’s investments are concentrated in the securities or
other assets of one or more issuers, countries or other geographic units, markets, industries, project types, or asset classes.
Credit Risk. Credit risk is the risk that an issuer, guarantor or liquidity provider of a fixed-income security may be unable or
unwilling, or may be perceived as unable or unwilling, to make timely principal and/or interest payments or
to otherwise honor its obligations. The credit rating assigned to a security or its issuer does not
necessarily reflect the issuer’s current financial condition or an investment’s volatility or liquidity. An actual or perceived decline in an issuer’s creditworthiness may result in a decrease in the value and liquidity of its
securities as well as greater price volatility, which may make it difficult to sell the securities. The
Fund may be adversely affected if an investment that it holds experiences a downgrade or a default.
S-3
Dividend-Paying Stock Risk. Investing in dividend-paying stocks involves the risk that such stocks may fall out of favor with investors and underperform other types of stocks or the
broader market. Companies that issue dividend-paying stocks are not required to pay or continue paying
dividends on such stocks. It is possible that issuers of the stocks held by the Fund will not declare
dividends in the future or will reduce or eliminate the payment of dividends (including reducing or eliminating anticipated accelerations or increases in the payment of dividends), which may adversely affect the Fund.
Financial Companies Risk. Financial services companies are
subject to extensive governmental regulation and intervention, which may adversely affect their
profitability, the scope of their activities, the prices they can charge, the amount of capital and liquid
assets they must maintain and their size, among other things. Financial services companies also may be significantly affected by, among other things, interest rates, economic conditions, volatility in financial markets, credit rating
downgrades, adverse public perception, exposure concentration and counterparty risk.
Fixed-to-Floating Rate Securities Risk. The Fund invests in fixed-to-floating rate securities, which are securities that have an initial term with a fixed dividend or coupon rate and following this initial term bear a floating rate. Securities which include
a floating or variable interest rate component can be less sensitive to interest rate changes than
securities with fixed interest rates, but may decline in value if their interest rates do not rise as much, or as quickly, as interest rates in general. Although floating rate securities can be less sensitive to interest rate risk
than fixed-rate securities, they are subject to the risks applicable to hybrid and preferred securities
more generally.
Floating Rate
Securities Risk. Securities with floating or variable interest rates can be less sensitive to interest rate
changes than securities with fixed interest rates, but may decline in value if their coupon rates do not
reset as high, or as quickly, as comparable market interest rates, and generally carry lower yields than fixed securities of the same maturity. Although floating rate securities are less sensitive to interest rate risk than
fixed-rate securities, they are subject to credit risk and default risk, which could impair their
value.
Illiquid Investments
Risk. An illiquid investment is any investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar
days or less without significantly changing the market value of the investment. To the extent the Fund
holds illiquid investments, the illiquid investments may reduce its returns because the Fund may be unable
to transact at advantageous times or prices. In addition, if the Fund is limited in its ability to sell illiquid investments during periods when shareholders are redeeming their shares, it will need to sell liquid securities to meet redemption requests
and illiquid securities will become a larger portion of the Fund’s holdings. During periods of market
volatility, liquidity in the market for Fund shares may be impacted by the liquidity in the market for the
underlying securities or other assets held by the Fund, which could lead to Fund shares trading at a premium or discount to the Fund’s NAV.
Interest Rate Risk. Interest rate risk refers to the risk of fluctuations in the value of a fixed-income security due to changes in the general level of interest rates. Interest rate changes can be sudden and unpredictable and are influenced by a
number of factors, including government policy, monetary policy, inflation expectations, perceptions of
risk, and supply and demand for fixed-income securities. An increase in interest rates generally will cause
the value of fixed-income securities to decline. Securities
with longer maturities generally are more sensitive to interest rate changes and subject to greater fluctuations in
value. Changes in interest rates may have unpredictable effects on fixed-income markets and result in
heightened volatility and lower liquidity for certain instruments, which may adversely affect a Fund’s
performance. During periods of very low or negative interest rates, a Fund may be unable to maintain
positive returns or pay dividends to shareholders.
Issuer Risk. The performance of the Fund depends on the performance of individual securities or other assets to which the Fund has exposure. The value of securities or other assets may decline, or perform differently from the market as a
whole, due to changes in the financial condition or credit rating of the issuer or
counterparty.
Management Risk. The Fund generally does not attempt to take defensive positions under any market conditions, including declining markets. As the Fund will not fully replicate the Underlying Index and may hold securities or other assets not
included in the Underlying Index, it is subject to the risk that the investment strategy of BFA may not
produce the intended results. There is no guarantee that the Fund’s investment results will have a
high degree of correlation to those of the Underlying Index or that the Fund will achieve its investment objective.
Market Trading Risk. The Fund faces numerous market trading risks, including the potential lack of an active market for Fund shares (including through a trading halt), losses from
trading in secondary markets, periods of high volatility, and disruptions in the process of creating and
redeeming Fund shares. Any of these factors, among others, may lead to the Fund’s shares trading in
the secondary market at a premium or discount to NAV or to the intraday value of the Fund’s portfolio
holdings. If you buy Fund shares at a time when the market price is at a premium to NAV or sell Fund shares
at a time when the market price is at a discount to NAV, you may pay significantly more or receive significantly less than the underlying value of the Fund shares.
Operational and Technology Risks. The Fund is directly and indirectly susceptible to operational and technology risks, including those related to human errors, processing errors, communication errors, systems failures, cybersecurity
incidents, and the use of artificial intelligence and machine learning (“AI”), which may result in losses for the Fund and its shareholders or may impair the Fund’s operations. While the
Fund’s service providers are required to have appropriate operational, information security and
cybersecurity risk management policies and procedures, their methods of risk management may differ from
those of the Fund. Operational and technology risks for the issuers in which the Fund invests could also result in material adverse consequences for such issuers and may cause the Fund’s investments in such issuers to lose
value.
Risk of Investing in
China. Investments in Chinese securities, including certain Hong Kong-listed and U.S.-listed securities, are subject to risks specific to China. China may be
subject to considerable degrees of economic, political and social instability. Despite economic and market
reforms in recent decades, the Chinese government’s control over certain sectors and enterprises and
significant regulation of investment and industry are still pervasive. Chinese companies are subject to the risk that Chinese authorities can intervene in their operations and structure. Chinese markets generally continue to experience
inefficiency, a lack of publicly available information and/or political and social instability and may be
subject to volatility and pricing anomalies resulting from governmental influence. Internal social unrest
or confrontations with other countries, including military conflicts in response to such events, may disrupt China’s
S-4
economy and markets and result in a greater
risk of currency fluctuations, currency non-convertibility, interest rate fluctuations and higher
inflation.
China has experienced security concerns, such as terrorism and
strained international relations. Additionally, China is alleged to have participated in state-sponsored
cyberattacks against foreign companies and foreign governments. Actual and threatened responses to such
activity and strained international relations, including purchasing restrictions, sanctions, export controls,
tariffs or cyberattacks on the Chinese government or Chinese companies, may impact China’s economy
and Chinese issuers in which the Fund invests. Incidents involving China’s or the region’s
security may adversely affect the Chinese economy and markets and the Fund’s
investments.
The Chinese economy is highly reliant on trade. A
reduction in spending on Chinese products and services, supply chain diversification, the institution of
additional tariffs or other trade barriers (including as a result of heightened trade tensions or a trade
war between China and the U.S. or in response to actual or alleged Chinese cyber activity) or a downturn in any of the economies of China’s key trading partners may have an adverse impact on the Chinese economy. The Underlying Index
may include companies that are subject to economic or trade restrictions (but not investment restrictions)
imposed by the U.S. or other governments due to national security, human rights or other concerns of such
government. So long as these restrictions do not include restrictions on investments, the Fund is generally
expected to invest in such companies, consistent with its objective to track the performance of the
Underlying Index.
Chinese companies, including those listed on U.S.
exchanges, are not subject to the same degree of regulatory requirements, accounting standards or auditor
oversight as companies in more developed countries. As a result, information about the Chinese securities
in which the Fund invests may be less reliable or complete. Chinese companies with securities listed on U.S.
exchanges may be delisted if they do not meet U.S. accounting standards and auditor oversight requirements,
or for other reasons, which would significantly decrease the liquidity and value of the securities. There
may be significant obstacles to obtaining information necessary for investigations into or litigation against
Chinese companies, and shareholders may have limited legal remedies.
Many Chinese companies listed on U.S.
exchanges use variable interest entities or “VIEs” in their structure as a result of
foreign ownership restrictions. Any change in the operations of entities in a VIE structure, the status of
VIE contractual arrangements or the legal or regulatory environment in China could result in significant,
and possibly permanent and/or total, losses for investments in VIE issuers. The Fund does not select
investments based on investor protection considerations.
Risk of Investing in the U.S. Investing in U.S. issuers subjects the Fund to legal, regulatory, political, currency, security, and economic risks that are specific to the U.S. Certain changes in the U.S., such as a weakening of the U.S. economy or a
decline in its financial markets, may have an adverse effect on U.S. issuers.
Securities Lending Risk. The Fund may engage in
securities lending. Securities lending involves the risk that the Fund may lose money because the borrower
of the loaned securities fails to return the securities in a timely manner or at all. The Fund could also
lose money in the event of a decline in the value of collateral provided for loaned securities or a decline in the value of any investments made with cash collateral. These events could also trigger adverse tax consequences for the
Fund.
Tracking Error Risk. The Fund may be subject to
“tracking error,” which is the divergence of the Fund’s performance from that of the Underlying Index. Tracking error may occur due to a number of factors, including differences between the securities
and other assets held in the Fund’s portfolio and those included in the Underlying Index; differences
in the timing and methodologies used to value securities and other assets; transaction costs and other
expenses incurred by the Fund that the Underlying Index does not incur; the Fund’s holding of uninvested cash; differences in the timing of the accrual or the valuation of dividends or interest received by the Fund or distributions paid to
Fund shareholders; tax gains or losses; the requirements for the Fund to maintain pass-through tax
treatment; portfolio transactions carried out to minimize the distribution of capital gains to
shareholders; the acceptance of custom baskets; changes to the Underlying Index; and impacts to the Fund of
complying with certain regulatory requirements or limits. Tracking error risk may be heightened during
times of increased market volatility or other unusual market conditions.
S-5
Performance
Information
The performance information below illustrates how the Fund’s
performance has varied over different periods and provides some indication of the risks of investing in the Fund. The bar chart shows how the performance of the Fund has varied
from one calendar year to another over the periods shown. The table compares the Fund’s performance to that of an appropriate broad-based securities market index and the Underlying
Index. Fund returns assume the reinvestment of any dividends and distributions. The Fund’s returns reflect the impact of any agreements to waive or reimburse expenses,
which would reduce performance if not in effect. Past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. Updated
performance information, including the Fund’s current NAV, may be obtained by visiting www.iShares.com or by calling 1-800-iShares (1-800-474-2737) (toll
free).
Calendar Year-by-Year Returns
| |
Return (%) |
Period Ended |
| Calendar Year-to-Date Return |
-0.36% |
June 30, 2025 |
| During the periods shown in the chart:
| ||
| Best Quarter |
10.91% |
June 30, 2020 |
| Worst Quarter |
-15.31% |
March 31, 2020 |
Average Annual Total Returns
(for the periods ended December 31, 2024)
(for the periods ended December 31, 2024)
| |
One Year |
Five Years |
Ten Years |
| (Inception Date: 3/26/2007) |
|
|
|
| Return Before Taxes |
7.87% |
2.16% |
3.46% |
| Return After Taxes on Distributions |
5.93% |
0.48% |
1.78% |
| Return After Taxes on Distributions and Sale of Fund Shares |
5.39% |
1.27% |
2.27% |
| MSCI USA Index1 (Returns do not reflect deductions for fees, expenses or taxes) |
25.08% |
14.56% |
13.08% |
| ICE Exchange-Listed Preferred & Hybrid Securities Index2 (Returns do not reflect deductions
for fees, expenses or taxes) |
8.49% |
2.67% |
4.12% |
1The Fund has added this broad-based index in response to new regulatory requirements.
2Index returns through January 31, 2019 reflect the
performance of the S&P U.S. Preferred Stock Index, which, effective as of February 1, 2019, was replaced by the ICE Exchange-Listed Preferred & Hybrid Securities
Transition Index as the Underlying Index of the Fund. Index returns from February 1, 2019 through October 31, 2019 reflect the ICE Exchange-Listed Preferred & Hybrid
Securities Transition Index. Index returns beginning on November 1, 2019 reflect the performance of the ICE Exchange-Listed Preferred & Hybrid Securities Index, which,
effective as of November 1, 2019, replaced the ICE Exchange-Listed Preferred & Hybrid Securities Transition Index as the Underlying Index of the Fund.
After-tax returns in the table above are calculated using the historical highest individual
U.S. federal marginal income tax rates and do not reflect the impact of state or local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown, and after-tax returns shown are not relevant to tax-exempt investors or investors who hold shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts (“IRAs”). Fund returns after taxes on
distributions and sales of Fund shares are calculated assuming that an investor has sufficient capital gains of the same character from other investments to offset any capital
losses from the sales of Fund shares. As a result, Fund returns after taxes on distributions and sales of Fund shares may exceed Fund returns before taxes and/or returns after taxes on distributions.
S-6
Management
Investment Adviser. BlackRock Fund Advisors.
Portfolio Managers. Jennifer Hsui, Matt Waldron, Peter Sietsema and Steven White (the “Portfolio
Managers”) are primarily
responsible for the day-to-day management of the Fund. Each Portfolio Manager supervises a portfolio
management team. Ms. Hsui has been a Portfolio Manager of the Fund since 2012. Mr. Waldron, Mr. Sietsema
and Mr. White have been Portfolio Managers of the Fund since 2025.
Purchase and Sale of Fund Shares
The Fund is an exchange-traded fund (commonly referred to as an “ETF”). Individual shares of the Fund may
only be bought and sold in the secondary market through a broker-dealer. Because ETF shares trade at market
prices rather than at NAV, shares may trade at a price greater than NAV (a premium) or less than NAV (a
discount). An investor may incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase shares of the Fund (bid) and the lowest price a seller is willing to accept for
shares of the Fund (ask) when buying or selling shares in the secondary market (the “bid-ask spread”).
Tax Information
The Fund intends to make distributions that may be taxable to you as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement such as a 401(k) plan or an IRA, in which case, your
distributions generally will be taxed when withdrawn.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), BFA or other related companies may pay the intermediary for marketing
activities and presentations, educational training programs, conferences, the development of technology
platforms and reporting systems or other services related to the sale or promotion of the Fund. These
payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your
salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
S-7
