What Is the IBMT ETF? A Complete Guide to Returns, Expense Ratio, Holdings and Alternative ETFs
The iShares iBonds Dec 2031 Term Muni Bond ETF (IBMT) holds investment-grade US municipal bonds maturing in 2031, aiming to deliver tax-advantaged interest income along with return of principal at maturity. Its dividend payouts and defined-maturity structure are widely seen as the key selection criteria for this bond ETF.
SubscribeWhat Is the iShares iBonds 2031 Term Muni Bond ETF?
The fund tracks an index of investment-grade US municipal bonds maturing on or before December 2031. Under its defined-maturity (iBonds) structure, the portfolio is liquidated in the target year and principal is returned to investors.
It suits investors who need funds at a specific point in time or want tax-advantaged interest income.
It is a passively managed (index-tracking) ETF run by BlackRock (iShares).
How Does the iShares iBonds 2031 Term Muni Bond ETF Invest?
| Item | Details |
|---|---|
| Tracked Index | Index of investment-grade US municipal bonds maturing in 2031 |
| Management Style | Passive (index-tracking) |
| Rebalancing Frequency | Periodic, according to index rules |
| Dividend Frequency | Monthly |
| Issuer | BlackRock (iShares) |
| Expense Ratio | 0.10% |
The fund holds a broad range of investment-grade municipal bonds maturing through December 2031 and provides interest income. As maturity approaches, bond redemption proceeds accumulate, and the fund terminates in the target year, distributing its remaining assets to investors.
- Offers the effect of holding individual municipal bonds to maturity in a single product
- A defined structure that aims to return principal at maturity
iShares iBonds 2031 Term Muni Bond ETF Size and Costs (AUM and Management Fee)
Assets under management (AUM) stand at $207.9M, and the annual expense ratio is 0.10%.
Unlike general municipal bond ETFs that operate indefinitely with no maturity, this fund terminates in a target year, which reduces price uncertainty at maturity caused by interest rate changes.
iShares iBonds 2031 Term Muni Bond ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeMunicipal bond prices are highly sensitive to the direction of market interest rates, and price volatility tends to decline gradually as maturity approaches. Interest income accounts for a significant portion of total return.
Fund flows into defined-maturity bond products are driven by demand from investors planning cash needs for a specific date and by demand for tax-advantaged interest. Changes in the interest rate environment have a large influence on investor sentiment.
iShares iBonds 2031 Term Muni Bond ETF Pros and Cons
Its strengths are the return of principal at maturity and tax-advantaged interest, while its weaknesses are credit and interest rate risk and the burden of reinvesting after the target year.
💪 Key Strengths
⚠️ Points to Watch
iShares iBonds 2031 Term Muni Bond ETF Alternative ETFs and Related Products
The two products shown in the table, MUB and VTEB, are broad US municipal bond ETFs that operate indefinitely with no maturity limit and have the advantage of lower fees, while CMF is characterized by its concentration in a specific state's municipal bonds. Investors who want a different maturity date can also consider IBMO, which belongs to the same iBonds defined-maturity municipal bond family, and if tax advantages are not needed, a general aggregate bond ETF such as AGG is another alternative.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 MUB | iShares National Muni Bond ETF | $104.18 | +0.3% | $54.3B | 0.05% | 3.28% | -3.0% |
 VTEB | Vanguard Tax-Exempt Bond ETF | $48.88 | +0.4% | $53.0B | 0.03% | 3.48% | -3.2% |
 JMUB | JPMorgan Municipal ETF | $49.09 | +0.3% | $9.0B | 0.18% | 3.49% | -3.0% |
 CGMU | Capital Group Municipal Income ETF | $26.72 | +0.0% | $7.5B | 0.27% | 3.42% | -2.7% |
 CMF | iShares California Muni Bond ETF | $55.80 | +0.3% | $5.4B | 0.08% | 3.02% | -3.0% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 NJR | New Jersey Resources Corp | 0.02% | $53.21 | +0.2% | $5.4B | 14.7 | 3.63% |
 NYT | New York Times Co | 0.03% | $70.17 | +1.1% | $11.3B | 29.3 | 1.28% |
iShares iBonds 2031 Term Muni Bond ETF Investor Checkpoints
Here are the points to review before investing in IBMT. For defined-maturity municipal bond products, it is especially important to check the maturity structure, tax benefits, interest rate sensitivity, and the credit quality of the underlying bonds in advance.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 📅 Maturity Structure | Termination in target year and timing of principal return | Scheduled to mature in 2031 |
| 💵 Expense Ratio | Cumulative cost impact over a long holding period | Annual fee applies |
| 🏛️ Tax Benefits | Whether municipal bond interest receives favorable tax treatment | Needs confirmation |
| 📊 Credit Quality | Investment-grade composition of the underlying municipal bonds | Focused on investment grade |
When market interest rates are rising, bond prices may fall before maturity, and credit risk also exists depending on the financial condition of the issuers. Investors should also note that redemption proceeds must be reinvested once the target year has passed.
This is a defined-maturity municipal bond product suited to investors who need funds at a set point in time or want tax-advantaged interest. Investors who want ongoing exposure may consider products such as MUB and VTEB, while those who want to adjust the maturity date should also consider other iBonds funds.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of July 2, 2026.
Today's 5 AI picks, all free