What happens after the date of the maturity… does the etf cease to exist and everyone gets their money at the market close… or does it roll over into something else?
For example, “iShares iBonds® Dec 2025 Term Corporate ETF” ticker IBDQ with the goal of “Exposure to investment grade corporate bonds that mature between January 1, 2025 and December 15, 2025”
What happens after 2025 to that etf?
They redeem at NAV on maturity and pay out the final coupon and cap gains distributions. My job also uses the Invesco bulletshares (used to be Guggenheim) along with the iShares.
Tip: the last letter of the tickers go in order based upon maturity year. So BSCI was 12/31/2018 that just paid out and is now gone and next maturity is BSCJ for 12/31/2019 (these are Invesco Corp bond bulletshares ETFs) and so on and so forth.
It’s pretty much the same stuff across all the fund companies that do this. Best place to check is the prospectus or their websites which have a good explanation.
Hope that helps