BlackRock Debuts First Buffer ETFs With Launch of Two Funds

BlackRock debuted today its first buffer ETFs with the launch of the iShares Large Cap Moderate Buffer ETF (Cboe: IVVM) and the iShares Large Cap Deep Buffer ETF (Cboe: IVVB). Each ETF offers investors an efficient tool for seeking clearer financial outcomes and is designed to balance upside participation with less drawdown risk.

“Whether you are nearing retirement or a first-time investor, market volatility remains a top concern for investors,” said Dominik Rohe, Head of Americas ETF and Index Investments business at BlackRock. “iShares buffer ETFs unlock access to institutional-quality risk management solutions in the convenience of the ETF wrapper, helping investors play defense and, importantly, stay invested during turbulent market conditions.”

Helping long-term investors through capital markets innovation

iShares buffer ETFs use options to seek to track the share price return of the iShares Core S&P 500 ETF (IVV) up to an approximate upside cap, while mitigating market downturns by seeking to provide an approximate buffer against IVV losses within target ranges. IVVM aims to protect against the first 5% of quarterly losses, while IVVB seeks to protect against quarterly losses ranging from 5-20%.

Managed by BlackRock’s Fundamental Equities team, iShares buffer ETFs take an innovative approach to product construction and have been designed as buy-and-hold strategies. By resetting quarterly, rather than annually, the funds can more frequently adjust their buffer ranges to reflect prevailing market levels, providing a safeguard against ongoing volatility.

Managing risk to seek clearer outcomes

“BlackRock is focused on equipping advisors and investors with resilient portfolio solutions that can help them meet their long-term financial goals,” said Jaime Magyera, Co-Head of the U.S. Wealth Advisory business at BlackRock. “iShares buffer ETFs expand the investment toolkit for clients searching for new ways to manage risk and pursue clearer financial outcomes.”

These funds form part of BlackRock’s outcome-oriented product suite, which includes the industry’s first BuyWrite Fixed Income ETFs. iShares buffer ETFs are representative of the firm’s deep portfolio management expertise, sophisticated ETF infrastructure, and commitment to innovation.

About BlackRock

BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate | Twitter: @blackrock | LinkedIn: www.linkedin.com/company/blackrock

About iShares

iShares unlocks opportunity across markets to meet the evolving needs of investors. With more than twenty years of experience, a global line-up of 1300+ exchange traded funds (ETFs) and $3.07 trillion in assets under management as of March 31, 2023, iShares continues to drive progress for the financial industry. iShares funds are powered by the expert portfolio and risk management of BlackRock.

Carefully consider the Funds’ investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Fund’s prospectus 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.

There can be no guarantee that the Fund will be successful in its strategy to provide downside protection against Underlying ETF losses. The Fund does not provide principal protection or non-principal protection, and, despite the Approximate Buffer (the “Buffer”), an investor may experience significant losses on their investment, including the loss of their entire investment. A blended portfolio of Expiring Options and New Options during a Rebalance Period will impact the Fund’s ability to realize the full benefit of the Buffer or may subject the Fund’s return to an upside limit that is slightly lower or higher than the Approximate Cap (the “Cap") for the applicable Hedge Period. Accordingly, investors may bear losses against which the Buffer is anticipated to protect and be subject to an upside limit that is lower than the Cap. In the event an investor purchases Fund shares after a Hedge Period begins or sells Fund shares prior to the end of the Hedge Period, the returns realized by the investor will not match those that the Fund seeks to provide. In periods of extreme market volatility, the Fund’s return may be subject to downside protection significantly lower than the Buffer and an upside limit significantly below the Cap. A new cap is established during each Rebalance Period and is dependent upon current market conditions. As such, the Cap is likely to change, sometimes significantly, from one Hedge Period to the next.

The Fund invests in FLEX Options that derive their value from the Underlying ETF. FLEX Options are subject to counterparty risk, which is the risk that the other party in the transaction will not fulfill its contractual obligation and may be less liquid than other securities. The value of FLEX Options may be affected by interest rate changes, dividends, actual and implied volatility levels of the Underlying ETF’s share price, and the remaining time until the FLEX Options expire. Because of these factors, the Fund’s NAV may not increase or decrease at the same rate as the underlying ETF’s share price.

Actively managed funds do not seek to replicate the performance of a specified index. Actively managed funds may have higher portfolio turnover than index funds.

The Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by S&P Dow Jones Indices LLC, nor does this company make any representation regarding the advisability of investing in the Funds. BlackRock is not affiliated with S&P Dow Jones Indices LLC.

© 2023 BlackRock, Inc. or its affiliates. All Rights Reserved. BLACKROCK and iSHARES are trademarks of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.

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Paige Hofman
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Jenna Merchant
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