iShares iBonds Dec 2028 Term Muni Bond ETF (IBMQ US) – Portfolio Construction Methodology

The underlying S&P AMT-Free Municipal Series Callable-Adjusted Dec 2028 Index targets tax-exempt, investment-grade U.S. municipal bonds maturing or being redeemed in the index’s 2028 window while reducing early-call exposure. Eligible bonds are AMT-free issues of U.S. states, D.C., and local agencies (U.S. territories excluded) with ratings ≥BBB-/Baa3 and minimum maturity par outstanding ≥USD 2 million. Non-callables must mature after 31-Dec-2027 and before 2-Dec-2028; callables qualify if either the next call is no sooner than two years before a 2028 final maturity, or the final maturity is up to four years beyond 2028 with a call within the 2028 window. The index is market-value weighted. Starting five years before maturity, monthly rebalances phase out off-year bonds via rolling two-year removals so that, by early December 2028, only cash equivalents remain.

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