BlackRock Adds Max Buffer ETF to Its Active ETF Platform

Expands access to options strategies in the convenience of an ETF

Includes the most affordable buffer ETF that targets up to 100% downside protection1

NEW YORK, July 1, 2024–(BUSINESS THREAD)–BlackRock has bolstered its active ETF platform with a series of buffer ETFs that aim to provide investors with exposure to the growth potential of stocks while seeking to maximize downside protection. The first in the series – the iShares Large Cap Max Buffer ETF June (Cboe: MAXJ) launched today, making it the most affordable maximum buffer ETF targeting up to 100% downside protection in the market.1

“With record levels of cash on hold2, many investors are looking for tools to help them manage market volatility before returning to the market,” said Rachel Aguirre, Head of US iShares Product at BlackRock“iShares Max Buffer ETFs simplify access to traditional institutional risk management strategies through the convenience of ETF packaging, providing investors with resilient portfolio tools to help them stay invested through any market cycle.”

Product innovation expands long-term investors’ toolbox

Using a combination of options, the iShares Large Cap Max Buffer ETFs (Max Buffer ETFs) seek to track the share price performance of the underlying ETF, the iShares Core S&P 500 ETF (IVV), up to an approximate upside cap, while seeking to provide up to an approximate 100% buffer against IVV losses for each applicable hedge period.

The Max Buffer ETFs are expected to launch over a one-year period beginning at the end of each quarter, with the cap resetting for each fund upon expiration of the option at the end of each one-year period.

Designed as buy-and-hold strategies, Max Buffer ETFs are the latest additions to BlackRock’s results-oriented product suite, which includes two Buffer ETFs launched last year and a suite of BuyWrite fixed income and equity ETFs. BlackRock now manages $25 billion in assets under management across more than 40 active ETFs in the U.S.3

*BlackRock, as of June 30, 2024. The net expense ratio shown reflects a contractual fee waiver in effect through November 30, 2029.

The story continues

**A registration statement has been filed for the Fund and the registration statement has become effective. However, shares of the Fund are not yet available for purchase or sale. Consider the Fund’s investment objectives, risk factors, and charges and expenses carefully before investing. This and other information can be found in the Fund’s prospectus, which can be obtained by visiting the SEC’s website, by visiting www.iShares.com prior to launch or by calling 1-800-iShares (1-800-474-2737). Read the prospectus carefully before investing.

Before investing, carefully consider the investment objectives, risk factors and charges and expenses of the Funds. This and other information can be found in the Funds’ prospectuses or, if available, in summary prospectuses which can be obtained by visiting www.iShares.com Or www.blackrock.comRead the prospectus carefully before investing. Investing involves risks, including the risk of not getting back the principal invested.

There can be no assurance that the Fund will be successful in its strategy of providing downside protection to the underlying ETFs. The Fund does not provide capital protection or non-capital protection and, despite the approximate margin of safety (the “Margin of Safety”), an investor may experience significant losses on his or her investment, including the loss of his or her entire investment. A mixed portfolio of expired and new options during a rebalancing period will impact the Fund’s ability to take full advantage of the Margin of Safety or may subject the Fund’s performance to an upside limit that is slightly below or above the approximate cap (the “Cap”) for the applicable hedging period. As a result, investors may experience losses against which the Margin of Safety is intended to protect and be subject to an upside limit that is less than the Cap. In the event an investor purchases shares of the Fund after the start of a hedging period or sells shares of the Fund before the end of the hedging period, the returns realized by the investor will not match those that the Fund seeks to provide. During periods of extreme market volatility, the Fund’s performance may be subject to downside protection that is significantly less than the buffer and upside protection that is significantly less than the cap. A new cap is set during each rebalancing period and is dependent on current market conditions. As such, the cap is likely to change, sometimes significantly, from one hedging 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 to the transaction will not fulfill its contractual obligations, and may be less liquid than other securities. The value of FLEX options may be affected by changes in interest rates, dividends, actual and implied volatility levels in the underlying ETF’s share price and the time remaining until expiration of the FLEX options. As a result of these factors, the Fund’s net asset value may not increase or decrease at the same rate as the underlying ETF’s share price.

The Fund is actively managed and does not seek to replicate the performance of any specified index, may have a higher portfolio turnover rate and may charge higher fees than index funds due to increased trading and research expenses.

An investment in ETFs is not equivalent to an investment in cash and may involve significant risks not associated with an investment in cash.

This information should not be considered research, investment advice or recommendations regarding any particular product, strategy or security. This material is provided for informational, educational or illustrative purposes only and is subject to change.

Buying and selling ETF shares may incur brokerage commissions.

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

©2024 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK® And iShares are registered trademarks of BlackRock, Inc. or its affiliates. All other trademarks are the property of their respective owners.

Not FDIC insured. May lose value. No bank guarantee.

BlackRock, Inc.,
50 Hudson Yards, New York, NY 10001

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Contacts

MEDIA CONTACT
Joanna Yau
Joanna.Yau@BlackRock.com
646.856.7274

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