iShares LifePath Target Date 2040 ETF (ITDD US) – Portfolio Construction Methodology

The investment strategy underpinning the actively managed iShares LifePath Target Date 2040 ETF allocates and reallocates among iShares underlying ETFs to deliver retirement outcomes aligned with a dated glide path that becomes more conservative as 2040 approaches. The portfolio invests primarily in affiliated ETFs and, under normal circumstances, ≥80% in securities or instruments with economic characteristics similar to a proprietary 2040 Target Date Custom Benchmark; BlackRock applies optimization and proprietary risk tools to monitor alignment. Day-to-day exposures span global equities (value and growth across large/mid/small caps, including emerging markets), global fixed income (government, corporate, agency MBS/CMBS, investment grade and high yield, USD and local currency), and may include REITs; derivatives exposure can occur within underlying funds. Portfolio managers meet regularly to review asset-allocation targets and adjust positions, trimming or adding underlying funds to maintain glide-path and risk objectives; allocations are expected to approximate the Retirement Fund near maturity, with a potential merger thereafter.

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