| Investment Objective: |
The iShares Systematic Bond ETF (the "Fund") seeks to track the investment results of an index composed of U.S. dollar-denominated bonds that are rated either investment grade or high yield. The Fund seeks to track the BlackRock Universal Systematic Bond Index (the "Underlying Index"), which allocates across four components U.S. Treasury securities, U.S. dollar-denominated mortgage-backed securities ("MBS"), and U.S. dollar- denominated investment-grade and high-yield corporate bonds (collectively, the "Underlying Index Components"). The allocations are determined relative to a broader starting universe based on factors including the prevailing economic regime and the prevailing interest rate environment (both described in more detail below), as determined by BlackRock Index Services, LLC (the "Index Provider"). The Index Provider begins with a starting universe composed of the Underlying Index Components as well as the following U.S. dollar-denominated instruments, each of which must meet certain eligibility requirements U.S. agencies, investment-grade foreign government-related bonds, investment-grade Eurodollar bonds, and investment-grade 144A bonds (the "Starting Universe"). |
