iShares iBonds Dec 2027 Term Muni Bond ETF (IBMP US) – Portfolio Construction Methodology

The underlying S&P AMT-Free Municipal Series Callable-Adjusted Dec 2027 Index delivers a market-value-weighted basket of investment-grade, AMT-free U.S. municipal bonds expected to mature or be redeemed after 31-Dec-2026 and before 02-Dec-2027. Eligible issues (states and political subdivisions; territories excluded) must be rated at least BBB-/Baa3/BBB and have ≥ USD 2 million par outstanding; make-whole calls are excluded. Non-callables must mature within the window; callables qualify if final maturity is within the window and next call is no sooner than two years before final maturity, or if final maturity is up to four years beyond the window with a next call inside the window. Outside five years to term the index is market-value-weighted; starting five years before term, monthly rolling two-year prunings remove bonds maturing outside the term year. In the maturity year, redeemed/matured proceeds remain in tax-exempt cash until index termination.

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