iShares iBonds Dec 2026 Term Muni Bond ETF (IBMO US) – Portfolio Construction Methodology

The underlying S&P AMT-Free Municipal Series Callable-Adjusted Dec 2026 Index targets investment-grade, tax-exempt US municipal bonds expected to mature or be redeemed before 02-Dec-2026. Eligible bonds are fixed-rate, AMT-free, rated investment grade and must have minimum maturity par outstanding of at least USD 2 million; issues not meeting these investability thresholds are excluded to preserve capacity. The “callable-adjusted” design treats bonds with call dates prior to the target year as effectively maturing at the first applicable call date, reducing or removing exposure so the portfolio winds down in the designated year. Constituents are market-value-weighted by outstanding par and price. The index reconstitutes and rebalances monthly at month-end to admit new qualifying issues, remove downgrades or called/prerefunded pieces, and refresh weights, while avoiding sector/issuer caps to reflect municipal market issuance patterns.

To explore IBMO in more depth, visit our ETF analytics platform for institutional-grade insights — including performance and risk metrics, correlations, sensitivities, and factor exposure: https://www.etfstrategy.com/etf/IBMO_US