Download Prepare your portfolio for rising interest rates

Prepare your portfolio
for rising interest rates
As the Federal Reserve continues to raise interest rates, it’s time to adapt and consider repositioning your
portfolio. Whether you are looking to add flexibility, manage duration or seek a strong income source,
BlackRock has a wide array of strategies to help you.
Navigate with flexible bond funds built to adapt to rising interest rates
Fund
Strategic
Income
Opportunities
Fund
Strategic
Municipal
Opportunities
Fund
Ticker
BSIIX
MAMTX
What Does It Offer?
Duration
A flexible bond fund built to adapt to changing interest rates
Invests without sector, quality or geographic limitations using
traditional and non-traditional investing strategies
A proven record of attractive returns and low volatility
1.99 years
An adaptable municipal strategy that uses a combination of
traditional and non-traditional investing strategies
Actively manages interest rate and credit risk
Seeks tax-advantaged income through diverse interest rate and
credit environments
4.79 years
Manage duration with short-duration strategies to help guard against rising rates
Fund
iShares
Floating Rate
Bond ETF
iShares Short
Maturity Bond
ETF (active)
iShares 1-3
Year Credit
Bond ETF
iShares
0-5 Year
High Yield
Corporate
Bond ETF
Ticker
What Does It Offer?
Duration
FLOT
Exposure to U.S. floating rate bonds, whose interest payments
adjust to reflect changes in interest rates
Access to 300+ shorter-term investment-grade bonds in a single
fund
Use to put cash to work and manage interest rate risk
0.13 years
NEAR
Seeks to maximize current income through diversified exposure to
short-term bonds
Actively managed by BlackRock’s Short Duration Portfolio Team
Use to put cash to work, manage interest rate risk or diversify a
bond allocation
0.48 years
Exposure to short-term U.S. investment grade credit (corporate and
non-corporate bonds)
Targeted access to a specific segment of the domestic credit
market
Use to customize a bond allocation and pursue income
1.92 years
Exposure to short-term U.S. high yield corporate bonds
A complement or alternative for the iShares High Yield Corporate
Bond ETF (HYG)
Use to maintain exposure to corporate bonds with potentially less
interest rate risk
2.26 years
CSJ
SHYG
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Seek a strong income source that can potentially benefit from a rising rate environment
Fund
Ticker
Equity
Dividend
Fund
MADVX
What Does It Offer?
A conservative, core equity holding consisting of U.S.-centric quality,
multinational companies
Proven record of total return through ownership of dividend growers that seek to
provide investors with income, growth and a degree of stability
A history of lower volatility equity returns through diverse environments
Want to know more?
blackrock.com
1-877-ASK-1BLK (275-1255)
Duration source: BlackRock. As of 6/30/2017. Duration represents effective duration. Effective duration: Measures the sensitivity of the
price of a bond with embedded options to changes in interest rates, taking into account the likelihood of the bond being called, put and/or
sunk prior to its final maturity date. BlackRock uses a proprietary duration model which employs certain assumptions and may differ from
other fund complexes. Effective Duration is measured at the portfolio level and adjusted for leverage, hedging transactions and non-bond
holdings, including derivatives.
Carefully consider the Funds’ investment objectives, risk factors, and charges and expenses before investing. This
and other information can be found in the Funds’ prospectuses or, if available, the summary prospectuses which
may be obtained by visiting www.iShares.com or www.blackrock.com. Read the prospectus carefully before
investing.
Investing involves risk, including possible loss of principal. Institutional shares may not be available to all retail
investors.
Important Risks: Mutual funds are actively managed and their characteristics will vary. Stock and bond values fluctuate in price so the value
of your investment can go down depending on market conditions. Fixed income risks include interest-rate and credit risk. Typically, when
interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to
make principal and interest payments. Principal of mortgage- or asset-backed securities normally may be prepaid at any time, reducing the
yield and market value of those securities. Obligations of U.S. gov’t agencies are supported by varying degrees of credit but generally are not
backed by the full faith and credit of the U.S. gov’t. The funds may use derivatives to hedge their investments or to seek to enhance returns.
Derivatives entail risks relating to liquidity, leverage and credit that may reduce returns and increase volatility. International investing involves
special risks including, but not limited to currency fluctuations, illiquidity and volatility. These risks may be heightened for investments in
emerging markets. Non-investment-grade debt securities (high-yield/junk bonds) may be subject to greater market fluctuations, risk of default
or loss of income and principal than higher-rated securities. Short selling entails special risks. If the fund makes short sales in securities that
increase in value, the fund will lose value. Any loss on short positions may or may not be offset by investing short-sale proceeds in other
investments.
Securities with floating or variable interest rates may decline in value if their coupon rates do not keep pace with comparable market interest
rates. The Fund’s income may decline when interest rates fall because most of the debt instruments held by the Fund will have floating or
variable rates.
NEAR is actively managed and does not seek to replicate the performance of a specified index. The Fund may have a higher portfolio
turnover than funds that seek to replicate the performance of an index. NEAR will invest in privately issued securities that have not been
registered under the Securities Act of 1933 and as a result are subject to legal restrictions on resale. Privately issued securities are not
traded on established markets and may be illiquid, difficult to value and subject to wide fluctuations in value. Delay or difficulty in selling such
securities may result in a loss to the iShares Short Maturity Bond ETF. The fund may invest in asset-backed (“ABS”) and mortgage-backed
securities (“MBS”) which are subject to credit, prepayment and extension risk, and react differently to changes in interest rates than other
bonds. Small movements in interest rates may quickly reduce the value of certain ABS and MBS.
Buying and selling shares of ETFs will result in brokerage commissions. The Funds are distributed by BlackRock Investments, LLC (together
with its affiliates, “BlackRock”).
©2017 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries in
the United States and elsewhere. All other trademarks are the property of their respective owners.
Prepared by BlackRock Investments, LLC, member FINRA.
Not FDIC Insured • May Lose Value • No Bank Guarantee
USR0717U-223059-663135