div style="margin-top: 3pt;"span style="color: #000000; font-family: arial; font-size: 8.55pt;"The Fund is a fund of funds and seeks to /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"track the investment results of the /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"BlackRock iBonds/spanspan style="color: #000000; font-family: arial; font-size: 7pt; position: relative; top: -2pt;"®/spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;" 1-5 Year High Yield /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"and Income Ladder Index (the /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"“/spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"Underlying Index/spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"”/spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"). The Underlying /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"Index is composed exclusively of /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"underlying iShares iBonds High Yield /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"and Income ETFs (/spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"“/spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"iBonds ETFs/spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"”/spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;" or /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"“/spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"Underlying Funds/spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"”/spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;") (as determined by /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"BlackRock Index Service, LLC (the /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"“/spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"Index Provider/spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"”/spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;") that themselves seek /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"investment results corresponding to /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"their own underlying indexes. The Fund /span/div div style="line-height: 10.45pt; text-align: left;"span style="color: #000000; font-family: arial; font-size: 8.55pt;"invests primarily in the Underlying /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"Funds and cash and cash equivalents, /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"including shares of money market funds /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"advised by BFA or its affiliates /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"(/spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"“/spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"BlackRock Cash Funds/spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"”/spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;")./span/div div style="margin-top: 4pt;"span style="color: #000000; font-family: arial; font-size: 8.55pt;"The Fund seeks to track the investment /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"results of the Underlying Index that /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"provides exposure to U.S. dollar-denominated,/spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;" high-yield and other /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"income generating corporate bonds /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"spanning five consecutive maturity /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"years. The Underlying Index obtains this /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"exposure by holding iShares/spanspan style="color: #000000; font-family: arial; font-size: 7pt; position: relative; top: -2pt;"®/spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;" iBonds/spanspan style="color: #000000; font-family: arial; font-size: 7pt; position: relative; top: -2pt;"®/spanspan style="color: #000000; font-family: arial; font-size: 8.55pt; line-height: 10.45pt;" /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"ETFs as constituents./span/div div style="margin-top: 4pt;"span style="color: #000000; font-family: arial; font-size: 8.55pt;"The Underlying Index is reconstituted /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"and rebalanced annually on the last /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"business day in June of each year. /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"Constituents for the Underlying Index /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"are limited to the iBonds High Yield and /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"Income ETFs associated with the asset /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"class of the Underlying Index. On the /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"reconstitution date the iBonds ETF with /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"the nearest maturity is removed from /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"the Underlying Index and the iBonds ETF /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"with a five-year maturity is included /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"(based on the Index Provider's eligibility /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"criteria) - providing a rolling five-year /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"exposure to U.S. dollar-denominated, /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"generating corporate high yield and /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"income bonds. If an iBonds ETF is not /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"available for a given maturity year within /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"the five-year range, the Underlying Index /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"will hold fewer iBonds ETF constituents. /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"On the rebalance date, each index /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"constituent is assigned equal weighting. /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"However, for the one-year period after /span/div div style="line-height: 10.45pt; text-align: left;"span style="color: #000000; font-family: arial; font-size: 8.55pt;"each rebalance date, changes in ETF /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"prices may cause Underlying Index /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"constituent weights to drift. At the next /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"annual rebalance constituent weights /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"will be realigned./span/div div style="margin-top: 4pt;"span style="color: #000000; font-family: arial; font-size: 8.55pt;"BFA uses an indexing approach to try to /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"achieve the Fund’s investment /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"objective. Unlike many investment /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"companies, the Fund does not try to /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"“/spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"beat/spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"”/spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;" the index it tracks and does not /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"seek temporary defensive positions /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"when markets decline or appear /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"overvalued./span/div div style="margin-top: 4pt;"span style="color: #000000; font-family: arial; font-size: 8.55pt;"Indexing may eliminate the chance that /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"the Fund will substantially outperform /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"the Underlying Index but also may /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"reduce some of the risks of active /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"management, such as poor security /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"selection. Indexing seeks to achieve /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"lower costs and better after-tax /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"performance by aiming to keep portfolio /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"turnover low in comparison to actively /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"managed investment companies./span/div div style="margin-top: 4pt;"span style="color: #000000; font-family: arial; font-size: 8.55pt;"BFA uses a representative sampling /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"indexing strategy to manage the Fund /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"and the Underlying Funds. /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"“/spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"Representative sampling/spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"”/spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;" is an /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"indexing strategy that involves investing /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"in a representative sample of securities /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"that collectively has an investment /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"profile similar to that of an applicable /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"underlying index. The securities /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"selected are expected to have, in the /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"aggregate, investment characteristics /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"(based on factors such as market value /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"and industry weightings), fundamental /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"characteristics (such as return /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"variability, duration (/spanspan style="color: #000000; font-family: arial; font-size: 8.55pt; font-style: italic;"i.e./spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;", a security's /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"price sensitivity to a change in interest /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"rates), maturity or credit ratings and /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"yield) and liquidity measures similar to /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"those of an applicable underlying index. /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"The Fund or each Underlying Fund may /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"or may not hold all of the securities in /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"the applicable Underlying Index./span/div div style="line-height: 10.45pt; text-align: left;"span style="color: #000000; font-family: arial; font-size: 8.55pt;"The Fund seeks to achieve its /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"investment objective by investing, under /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"normal circumstances, at least 80% of /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"its net assets, plus the amount of any /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"borrowings for investment purposes, in /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"component securities and instruments /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"in the Fund’s Underlying Index and/or /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"bonds included in the underlying index /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"of the Underlying Funds. Cash and cash /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"equivalent investments associated with /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"a derivative position will be treated as /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"part of that position for the purposes of /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"calculating the percentage of /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"investments included in the Underlying /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"Index. The Fund seeks to track the /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"investment results of the Underlying /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"Index before fees and expenses of the /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"Fund./span/div div style="margin-top: 4pt;"span style="color: #000000; font-family: arial; font-size: 8.55pt;"The Fund may lend securities /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"representing up to one-third of the value /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"of the Fund's total assets (including the /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"value of any collateral received)./span/div div style="margin-top: 4pt;"span style="color: #000000; font-family: arial; font-size: 8.55pt;"The Underlying Index is sponsored by /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"the Index Provider, which is an affiliated /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"person of the Fund and of BFA, the /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"Fund’s investment adviser. The Index /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"Provider determines the composition /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"and relative weightings of the securities /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"in the Underlying Index and publishes /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"information regarding the market value /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"of the Underlying Index./span/div div style="margin-top: 4pt;"span style="color: #000000; font-family: arial; font-size: 8.55pt; font-weight: bold;"Industry Concentration Policy./spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;" The /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"Fund will concentrate its investments /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"(/spanspan style="color: #000000; font-family: arial; font-size: 8.55pt; font-style: italic;"i.e./spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;", hold 25% or more of its total /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"assets) in a particular industry or group /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"of industries to approximately the same /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"extent that the Underlying Index is /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"concentrated. For purposes of this /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"limitation, securities of the U.S. /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"government (including its agencies and /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"instrumentalities), repurchase /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"agreements collateralized by U.S. /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"government securities, and securities of /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"state or municipal governments and /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"their political subdivisions are not /span/div div style="line-height: 10.45pt; text-align: left;"span style="color: #000000; font-family: arial; font-size: 8.55pt;"considered to be issued by members of /spanspan style="color: #000000; font-family: arial; font-size: 8.55pt;"any industry./span/div