ETF Infographic – Getting Cash Off The Sidelines (FLOT, CSJ, SHY)

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February 1, 2012 6:34pm NYSE:CSJ NYSE:FLOT

By iShares: An investment in fixed income funds is not equivalent to and involves risks not associated with an investment in cash. Money market funds typically seek to maintain a net asset value of $1.00 per share. Fixed income funds do not have a similar objective.


Bonds and bond funds will decrease in value as interest rates rise. Bond funds may be subject to credit risk, which refers to the possibility that the debt issuers may not be able to make principal and interest payments or may have their debt downgraded by ratings agencies. An investment in the Fund(s) is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Asset allocation models and diversification do not promise any level of performance or guarantee against loss of principal.

The yield shown is the weighted average yield to maturity (YTM) for the funds in each sample portfolio.  YTM is the discount rate that equates the present value of the bond’s cash flows with its market price (including accrued interest). The funds’ average YTM is calculated as the weighted average of the yield to maturity of the underlying bonds in the funds.  This figure does not include expenses.  The duration shown is the weighted average duration of the funds in each sample portfolio. Duration is the measure of the price sensitivity of a fixed income asset or a portfolio to interest rate changes by factoring in a bond’s yield, maturity, and any call or put features. The funds’ duration is a weighted average of the effective durations of the underlying bonds. Effective duration is a measure of the potential responsiveness of a bond or portfolio price to small parallel shifts in interest rates. Effective duration takes into account the possible changes in expected bond cash flows due to small parallel shifts in interest rates.

This information should not be relied upon as research, investment advice or a recommendation regarding the iShares Funds or any security in particular. This information is strictly for illustrative and educational purposes. Past performance does not guarantee future results. For standardized fund performance, visit the iShares product pages for SHY, CSJ, and FLOT. [Related: Barclays 1-3 Year Treasury Bond ETF (NYSEArca:SHY), iShares Lehman 1-3 Year Credit ETF (NYSEArca:CSJ), iShares Floating Rate Note Fund (NYSEArca:FLOT)]

For information on the differences between mutual funds and ETFs, click here.

Carefully consider the iShares Funds’ investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds’ prospectuses, which may be obtained by calling 1-800-iShares (1-800-474-2737), or by clicking the Prospectuses link. Read the prospectus carefully before investing.

Investing involves risk, including possible loss of principal.

The iShares Funds (“Funds”) are distributed by SEI Investments Distribution Co. (“SEI”). BlackRock Fund Advisors (“BFA”) serves as the investment advisor to the Funds. The iShares Blog contributors are affiliated with BlackRock Investments, LLC (“BRIL”), which assists in the marketing of the Funds.  BFA and BRIL are subsidiaries of BlackRock, Inc. (“BlackRock”), none of which is affiliated with SEI.

The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective. The information provided is not intended to be a complete analysis of every material fact respecting any strategy. The examples presented do not take into consideration commissions, tax implications or other transactions costs, which may significantly affect the economic consequences of a given strategy.

The information provided is not intended to be tax advice. Investors should be urged to consult their tax professionals or financial advisors for more information regarding their specific tax situations.

Neither BlackRock Institutional Trust Company, N.A., and its affiliates nor SEI and its affiliates provide tax advice. Please note that (i) any discussion of U.S. tax matters contained in this communication cannot be used by you for the purpose of avoiding tax penalties; (ii) this communication was written to support the promotion or marketing of the matters addressed herein; and (iii) you should seek advice based on your particular circumstances from an independent tax advisor.

This material represents an assessment of the market environment at a specific time and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any security in particular.

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Cohen & Steers Capital Management, Inc., Dow Jones Trademark Holdings, LLC, European Public Real Estate Association (“EPRA® “), FTSE International Limited (“FTSE”), iBoxx®, JPMorgan Chase & Co., MSCI Inc., Morningstar, Inc., The NASDAQ OMX Group, Inc., National Association of Real Estate Investment Trusts (“NAREIT”), New York Stock Exchange, Inc., Russell Investment Group or Standard & Poor’s, nor are they sponsored, endorsed or issued by Barclays Capital. None of these companies make any representation regarding the advisability of investing in the Funds. Neither SEI, nor BlackRock Institutional Trust Company, N.A., nor any of their affiliates, are affiliated with the companies listed above.

©2010-2012 BlackRock. All rights reserved. iShares® is a registered trademark of BlackRock Institutional Trust Company, N.A. BlackRock® is a registered trademark of BlackRock, Inc.  All other trademarks, servicemarks or registered trademarks are the property of their respective owners.


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