0000844779 bf1:InvestorAInstitutionalMember bf1:S000059911Member bf1:C000195947Member 2025-12-31 2025-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:S000059911Member bf1:C000195948Member 2025-12-31 2025-12-31 0000844779 bf1:ClassKMember bf1:S000059911Member bf1:C000195949Member 2025-12-31 2025-12-31 0000844779 bf1:InvestorPMember bf1:S000059911Member bf1:C000201952Member 2025-12-31 2025-12-31 0000844779 bf1:ClassKMember bf1:S000059911Member 2025-12-31 2025-12-31 0000844779 bf1:ClassKMember bf1:S000059911Member bf1:AssetClassRiskMember 2025-12-31 2025-12-31 0000844779 bf1:ClassKMember bf1:S000059911Member bf1:DebtSecuritiesRiskMember 2025-12-31 2025-12-31 0000844779 bf1:ClassKMember bf1:S000059911Member bf1:IncomeRiskMember 2025-12-31 2025-12-31 0000844779 bf1:ClassKMember bf1:S000059911Member bf1:IndexedSecuritiesRiskMember 2025-12-31 2025-12-31 0000844779 bf1:ClassKMember bf1:S000059911Member bf1:IndexRelatedRiskMember 2025-12-31 2025-12-31 0000844779 bf1:ClassKMember bf1:S000059911Member bf1:ManagementRiskMember 2025-12-31 2025-12-31 0000844779 bf1:ClassKMember bf1:S000059911Member bf1:MarketRiskAndSelectionRiskMember 2025-12-31 2025-12-31 0000844779 bf1:ClassKMember bf1:S000059911Member bf1:MunicipalSecuritiesRisksMember 2025-12-31 2025-12-31 0000844779 bf1:ClassKMember bf1:S000059911Member bf1:OperationalAndTechnologyRisksMember 2025-12-31 2025-12-31 0000844779 bf1:ClassKMember bf1:S000059911Member bf1:PassiveInvestmentRiskMember 2025-12-31 2025-12-31 0000844779 bf1:ClassKMember bf1:S000059911Member bf1:RepresentativeSamplingRiskMember 2025-12-31 2025-12-31 0000844779 bf1:ClassKMember bf1:S000059911Member oef:RiskLoseMoneyMember 2025-12-31 2025-12-31 0000844779 bf1:ClassKMember bf1:S000059911Member bf1:RiskOfInvestingInTheUnitedStatesMember 2025-12-31 2025-12-31 0000844779 bf1:ClassKMember bf1:S000059911Member bf1:TrackingErrorRiskMember 2025-12-31 2025-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:S000059911Member 2025-12-31 2025-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:S000059911Member bf1:AssetClassRiskMember 2025-12-31 2025-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:S000059911Member bf1:DebtSecuritiesRiskMember 2025-12-31 2025-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:S000059911Member bf1:IncomeRiskMember 2025-12-31 2025-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:S000059911Member bf1:IndexedSecuritiesRiskMember 2025-12-31 2025-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:S000059911Member bf1:IndexRelatedRiskMember 2025-12-31 2025-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:S000059911Member bf1:ManagementRiskMember 2025-12-31 2025-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:S000059911Member bf1:MarketRiskAndSelectionRiskMember 2025-12-31 2025-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:S000059911Member bf1:MunicipalSecuritiesRisksMember 2025-12-31 2025-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:S000059911Member bf1:OperationalAndTechnologyRisksMember 2025-12-31 2025-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:S000059911Member bf1:PassiveInvestmentRiskMember 2025-12-31 2025-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:S000059911Member bf1:RepresentativeSamplingRiskMember 2025-12-31 2025-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:S000059911Member oef:RiskLoseMoneyMember 2025-12-31 2025-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:S000059911Member bf1:RiskOfInvestingInTheUnitedStatesMember 2025-12-31 2025-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:S000059911Member bf1:TrackingErrorRiskMember 2025-12-31 2025-12-31 0000844779 bf1:InvestorPMember bf1:S000059911Member 2025-12-31 2025-12-31 0000844779 bf1:InvestorPMember bf1:S000059911Member bf1:AssetClassRiskMember 2025-12-31 2025-12-31 0000844779 bf1:InvestorPMember bf1:S000059911Member bf1:DebtSecuritiesRiskMember 2025-12-31 2025-12-31 0000844779 bf1:InvestorPMember bf1:S000059911Member bf1:IncomeRiskMember 2025-12-31 2025-12-31 0000844779 bf1:InvestorPMember bf1:S000059911Member bf1:IndexedSecuritiesRiskMember 2025-12-31 2025-12-31 0000844779 bf1:InvestorPMember bf1:S000059911Member bf1:IndexRelatedRiskMember 2025-12-31 2025-12-31 0000844779 bf1:InvestorPMember bf1:S000059911Member bf1:ManagementRiskMember 2025-12-31 2025-12-31 0000844779 bf1:InvestorPMember bf1:S000059911Member bf1:MarketRiskAndSelectionRiskMember 2025-12-31 2025-12-31 0000844779 bf1:InvestorPMember bf1:S000059911Member bf1:MunicipalSecuritiesRisksMember 2025-12-31 2025-12-31 0000844779 bf1:InvestorPMember bf1:S000059911Member bf1:OperationalAndTechnologyRisksMember 2025-12-31 2025-12-31 0000844779 bf1:InvestorPMember bf1:S000059911Member bf1:PassiveInvestmentRiskMember 2025-12-31 2025-12-31 0000844779 bf1:InvestorPMember bf1:S000059911Member bf1:RepresentativeSamplingRiskMember 2025-12-31 2025-12-31 0000844779 bf1:InvestorPMember bf1:S000059911Member oef:RiskLoseMoneyMember 2025-12-31 2025-12-31 0000844779 bf1:InvestorPMember bf1:S000059911Member bf1:RiskOfInvestingInTheUnitedStatesMember 2025-12-31 2025-12-31 0000844779 bf1:InvestorPMember bf1:S000059911Member bf1:TrackingErrorRiskMember 2025-12-31 2025-12-31 0000844779 2025-12-31 2025-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:C000195947Member 2021-01-01 2025-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:C000195947Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:C000195947Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:C000195948Member 2021-01-01 2025-12-31 0000844779 bf1:ClassKMember bf1:C000195949Member 2021-01-01 2025-12-31 0000844779 bf1:ClassKMember bf1:C000195949Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0000844779 bf1:ClassKMember bf1:C000195949Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0000844779 bf1:InvestorPMember bf1:C000201952Member 2021-01-01 2025-12-31 0000844779 bf1:InvestorPMember bf1:C000201952Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0000844779 bf1:InvestorPMember bf1:C000201952Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0000844779 bf1:ClassKMember bf1:ICEBofaUSMunicipalSecuritiesIndexMember 2021-01-01 2025-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:ICEBofaUSMunicipalSecuritiesIndexMember 2021-01-01 2025-12-31 0000844779 bf1:InvestorPMember bf1:ICEBofaUSMunicipalSecuritiesIndexMember 2021-01-01 2025-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:S000059911Member bf1:C000195947Member 2016-01-01 2016-12-31 0000844779 bf1:ClassKMember bf1:S000059911Member bf1:C000195949Member 2016-01-01 2016-12-31 0000844779 bf1:InvestorPMember bf1:S000059911Member bf1:C000201952Member 2016-01-01 2016-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:S000059911Member bf1:C000195947Member 2017-01-01 2017-12-31 0000844779 bf1:ClassKMember bf1:S000059911Member bf1:C000195949Member 2017-01-01 2017-12-31 0000844779 bf1:InvestorPMember bf1:S000059911Member bf1:C000201952Member 2017-01-01 2017-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:S000059911Member bf1:C000195947Member 2018-01-01 2018-12-31 0000844779 bf1:ClassKMember bf1:S000059911Member bf1:C000195949Member 2018-01-01 2018-12-31 0000844779 bf1:InvestorPMember bf1:S000059911Member bf1:C000201952Member 2018-01-01 2018-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:S000059911Member bf1:C000195947Member 2019-01-01 2019-12-31 0000844779 bf1:ClassKMember bf1:S000059911Member bf1:C000195949Member 2019-01-01 2019-12-31 0000844779 bf1:InvestorPMember bf1:S000059911Member bf1:C000201952Member 2019-01-01 2019-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:S000059911Member bf1:C000195947Member 2020-01-01 2020-12-31 0000844779 bf1:ClassKMember bf1:S000059911Member bf1:C000195949Member 2020-01-01 2020-12-31 0000844779 bf1:InvestorPMember bf1:S000059911Member bf1:C000201952Member 2020-01-01 2020-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:S000059911Member bf1:C000195947Member 2021-01-01 2021-12-31 0000844779 bf1:ClassKMember bf1:S000059911Member bf1:C000195949Member 2021-01-01 2021-12-31 0000844779 bf1:InvestorPMember bf1:S000059911Member bf1:C000201952Member 2021-01-01 2021-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:S000059911Member bf1:C000195947Member 2022-01-01 2022-12-31 0000844779 bf1:ClassKMember bf1:S000059911Member bf1:C000195949Member 2022-01-01 2022-12-31 0000844779 bf1:InvestorPMember bf1:S000059911Member bf1:C000201952Member 2022-01-01 2022-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:S000059911Member bf1:C000195947Member 2023-01-01 2023-12-31 0000844779 bf1:ClassKMember bf1:S000059911Member bf1:C000195949Member 2023-01-01 2023-12-31 0000844779 bf1:InvestorPMember bf1:S000059911Member bf1:C000201952Member 2023-01-01 2023-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:S000059911Member bf1:C000195947Member 2024-01-01 2024-12-31 0000844779 bf1:ClassKMember bf1:S000059911Member bf1:C000195949Member 2024-01-01 2024-12-31 0000844779 bf1:InvestorPMember bf1:S000059911Member bf1:C000201952Member 2024-01-01 2024-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:C000195947Member 2025-01-01 2025-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:C000195947Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:C000195947Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:C000195948Member 2025-01-01 2025-12-31 0000844779 bf1:ClassKMember bf1:C000195949Member 2025-01-01 2025-12-31 0000844779 bf1:ClassKMember bf1:C000195949Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0000844779 bf1:ClassKMember bf1:C000195949Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0000844779 bf1:InvestorPMember bf1:C000201952Member 2025-01-01 2025-12-31 0000844779 bf1:InvestorPMember bf1:C000201952Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0000844779 bf1:InvestorPMember bf1:C000201952Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0000844779 bf1:ClassKMember bf1:ICEBofaUSMunicipalSecuritiesIndexMember 2025-01-01 2025-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:ICEBofaUSMunicipalSecuritiesIndexMember 2025-01-01 2025-12-31 0000844779 bf1:InvestorPMember bf1:ICEBofaUSMunicipalSecuritiesIndexMember 2025-01-01 2025-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:S000059911Member bf1:C000195947Member 2025-01-01 2025-12-31 0000844779 bf1:ClassKMember bf1:S000059911Member bf1:C000195949Member 2025-01-01 2025-12-31 0000844779 bf1:InvestorPMember bf1:S000059911Member bf1:C000201952Member 2025-01-01 2025-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:C000195947Member 2016-01-01 2025-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:C000195947Member oef:AfterTaxesOnDistributionsAndSalesMember 2016-01-01 2025-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:C000195947Member oef:AfterTaxesOnDistributionsMember 2016-01-01 2025-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:C000195948Member 2016-01-01 2025-12-31 0000844779 bf1:ClassKMember bf1:C000195949Member 2016-01-01 2025-12-31 0000844779 bf1:ClassKMember bf1:C000195949Member oef:AfterTaxesOnDistributionsAndSalesMember 2016-01-01 2025-12-31 0000844779 bf1:ClassKMember bf1:C000195949Member oef:AfterTaxesOnDistributionsMember 2016-01-01 2025-12-31 0000844779 bf1:InvestorPMember bf1:C000201952Member 2016-01-01 2025-12-31 0000844779 bf1:InvestorPMember bf1:C000201952Member oef:AfterTaxesOnDistributionsAndSalesMember 2016-01-01 2025-12-31 0000844779 bf1:InvestorPMember bf1:C000201952Member oef:AfterTaxesOnDistributionsMember 2016-01-01 2025-12-31 0000844779 bf1:ClassKMember bf1:ICEBofaUSMunicipalSecuritiesIndexMember 2016-01-01 2025-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:ICEBofaUSMunicipalSecuritiesIndexMember 2016-01-01 2025-12-31 0000844779 bf1:InvestorPMember bf1:ICEBofaUSMunicipalSecuritiesIndexMember 2016-01-01 2025-12-31 iso4217:USD pure 0000844779 false 485BPOS 2025-12-31 0.0048 0.0344 0.0383 0.0124 0.0724 0.0470 0.0128 -0.0885 0.0631 0.0095 0.0048 0.0374 0.0383 0.0127 0.0757 0.0500 0.0158 -0.0858 0.0663 0.0125 0.0048 0.0344 0.0383 0.0124 0.0725 0.0469 0.0129 -0.0884 0.0632 0.0095 N-1A BLACKROCK FUNDS 2026-04-30 Fund Overview Key Facts About iShares Municipal Bond Index Fund Investment Objective <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The investment objective of iShares Municipal Bond Index Fund (the “Fund”), a series of BlackRock Funds</span><span style="color:#000000;font-family:arial;font-size:5pt;position:relative;top:-3.25pt">SM</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> (the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">“Trust”), is to seek to provide investment results that correspond to the total return performance of fixed-income </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities in the aggregate, as represented by the ICE BofA US Municipal Securities Index (the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">“</span><span style="color:#000000;font-family:arial;font-size:9.30pt">Underlying Index</span><span style="color:#000000;font-family:arial;font-size:9.30pt">”</span><span style="color:#000000;font-family:arial;font-size:9.30pt">).</span></div> Fees and Expenses of the Fund <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">You may pay </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">other fees, such as brokerage commissions and other fees to your financial professional or your selected securities </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">dealer, broker, investment adviser, service provider or industry professional (including BlackRock Fund Advisors </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">(</span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">“</span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">BFA</span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">”</span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">) and its affiliates) (each, a </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">“</span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">Financial Intermediary</span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">”</span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">), which are not reflected in the table and example </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">below.</span><span style="color:#000000;font-family:arial;font-size:1pt;line-height:0.93pt"> </span></div> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0010 0.0010 0.0025 0 0.0025 0.0021 0.0060 0.0031 -0.0010 -0.0006 0.0050 0.0025 June 30, 2027 The Total Annual Fund Operating Expenses and Other Expenses do not correlate to the ratios of expenses to average net assets given in the Fund’s most recent Annual Financial Statements and Additional Information, which do not include Acquired Fund Fees and Expenses. Example: <div style="line-height:10.695pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9.30pt">This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other </span><span style="color:#000000;font-family:arial;font-size:9.30pt">mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then </span><span style="color:#000000;font-family:arial;font-size:9.30pt">redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% </span><span style="color:#000000;font-family:arial;font-size:9.30pt">return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher </span><span style="color:#000000;font-family:arial;font-size:9.30pt">or lower, based on these assumptions your costs would be:</span><span style="color:#000000;font-family:arial;font-size:1pt;line-height:0.93pt"> </span></div> 51 182 325 740 26 94 168 387 Portfolio Turnover: <div style="line-height:10.695pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its </span><span style="color:#000000;font-family:arial;font-size:9.30pt">portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when </span><span style="color:#000000;font-family:arial;font-size:9.30pt">shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was </span><span style="color:#000000;font-family:arial;font-size:9.30pt">38</span><span style="color:#000000;font-family:arial;font-size:9.30pt">% of the average value of its portfolio.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> 0.38 Principal Investment Strategies of the Fund <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The Fund seeks to track the investment results of the Underlying Index, which tracks the performance of U.S. dollar </span><span style="color:#000000;font-family:arial;font-size:9.30pt">denominated investment grade tax-exempt debt publicly issued by U.S. states and territories, and their political </span><span style="color:#000000;font-family:arial;font-size:9.30pt">subdivisions, in the U.S. domestic market. Qualifying securities must have at least one year remaining term to final </span><span style="color:#000000;font-family:arial;font-size:9.30pt">maturity, at least 18 months to final maturity at the time of issuance, a fixed coupon schedule and an investment </span><span style="color:#000000;font-family:arial;font-size:9.30pt">grade rating (based on an average of Moody’s, S&amp;P and Fitch). Minimum size requirements vary based on the initial </span><span style="color:#000000;font-family:arial;font-size:9.30pt">term to final maturity at time of issuance. The Underlying Index contains 2,018 issuers as of March 31, 2026 and was </span><span style="color:#000000;font-family:arial;font-size:9.30pt">created on December 31, 1988.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">BFA uses a representative sampling indexing strategy to manage the Fund. “Representative sampling” is an indexing </span><span style="color:#000000;font-family:arial;font-size:9.30pt">strategy that involves investing in a representative sample of securities that collectively has an investment profile </span><span style="color:#000000;font-family:arial;font-size:9.30pt">similar to that of the Underlying Index. The securities selected are expected to have, in the aggregate, investment </span><span style="color:#000000;font-family:arial;font-size:9.30pt">characteristics (based on factors such as market capitalization and industry weightings), fundamental characteristics </span><span style="color:#000000;font-family:arial;font-size:9.30pt">(such as return variability and yield) and liquidity measures similar to those of the Underlying Index. The Fund may or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">may not hold all of the securities in the Underlying Index.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The Fund generally invests at least 80% of its assets, plus the amount of any borrowings for investment purposes, in </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities or other financial instruments that are components of or have economic characteristics similar to the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities in the Underlying Index. The Fund may invest a portion of the remainder of its assets in securities not </span><span style="color:#000000;font-family:arial;font-size:9.30pt">included in the Underlying Index, but which BFA believes will help the Fund track the Underlying Index.</span></div> You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Municipal Securities Risks </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Municipal securities risks include the ability of the issuer to repay the obligation, the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">relative lack of information about certain issuers of municipal securities, and the possibility of future legislative </span><span style="color:#000000;font-family:arial;font-size:9.30pt">changes which could affect the market for and value of municipal securities. Budgetary constraints of local, state, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and federal governments upon which the issuers may be relying for funding may also impact municipal securities. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">These risks include:</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">General Obligation Bonds Risks</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Timely payments depend on the issuer’s credit quality, ability to raise tax </span><span style="color:#000000;font-family:arial;font-size:9.30pt">revenues and ability to maintain an adequate tax base.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Revenue Bonds Risks </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— These payments depend on the money earned by the particular facility or class of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">facilities, or the amount of revenues derived from another source.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Private Activity Bonds Risks</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Municipalities and other public authorities issue private activity bonds to finance </span><span style="color:#000000;font-family:arial;font-size:9.30pt">development of industrial facilities for use by a private enterprise. The private enterprise pays the principal and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">interest on the bond, and the issuer does not pledge its full faith, credit and taxing power for repayment.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Moral Obligation Bonds Risks</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Moral obligation bonds are generally issued by special purpose public authorities </span><span style="color:#000000;font-family:arial;font-size:9.30pt">of a state or municipality. If the issuer is unable to meet its obligations, repayment of these bonds becomes a moral </span><span style="color:#000000;font-family:arial;font-size:9.30pt">commitment, but not a legal obligation, of the state or municipality.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Municipal Notes Risks</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Municipal notes are shorter term municipal debt obligations. If there is a shortfall in the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">anticipated proceeds, the notes may not be fully repaid and the Fund may lose money.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Municipal Lease Obligations Risks</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — In a municipal lease obligation, the issuer agrees to make payments when </span><span style="color:#000000;font-family:arial;font-size:9.30pt">due on the lease obligation. Although the issuer does not pledge its unlimited taxing power for payment of the lease </span><span style="color:#000000;font-family:arial;font-size:9.30pt">obligation, the lease obligation is secured by the leased property.</span></div><div style="line-height:10.695pt;margin-left:12pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Tax-Exempt Status Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — The Fund and its investment manager will rely on the opinion of issuers’ bond counsel </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and, in the case of derivative securities, sponsors’ counsel, on the tax-exempt status of interest on municipal bonds </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and payments under derivative securities. Neither the Fund nor its investment manager will independently review the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">bases for those tax opinions, which may ultimately be determined to be incorrect and subject the Fund and its </span><span style="color:#000000;font-family:arial;font-size:9.30pt">shareholders to substantial tax liabilities.</span></div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Debt Securities Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Debt securities, such as bonds, involve risks, such as credit risk, interest rate risk, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">extension risk, and prepayment risk, each of which are described in further detail below:</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Credit Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Credit risk refers to the possibility that the issuer of a debt security (i.e., the borrower) will not be </span><span style="color:#000000;font-family:arial;font-size:9.30pt">able to make payments of interest and principal when due. Changes in an issuer’s credit rating or the market’s </span><span style="color:#000000;font-family:arial;font-size:9.30pt">perception of an issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The </span><span style="color:#000000;font-family:arial;font-size:9.30pt">degree of credit risk depends on both the financial condition of the issuer and the terms of the obligation.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Interest Rate Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — The market value of bonds and other fixed-income securities changes in response to interest </span><span style="color:#000000;font-family:arial;font-size:9.30pt">rate changes and other factors. Interest rate risk is the risk that prices of bonds and other fixed-income securities </span><span style="color:#000000;font-family:arial;font-size:9.30pt">will increase as interest rates fall and decrease as interest rates rise.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The Fund may be subject to a greater risk of rising interest rates during a period of historically low interest rates. For </span><span style="color:#000000;font-family:arial;font-size:9.30pt">example, if interest rates increase by 1%, assuming a current portfolio duration of ten years, and all other factors </span><span style="color:#000000;font-family:arial;font-size:9.30pt">being equal, the value of the Fund’s investments would be expected to decrease by 10%. (Duration is a measure of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the price sensitivity of a debt security or portfolio of debt securities to relative changes in interest rates.) The </span><span style="color:#000000;font-family:arial;font-size:9.30pt">magnitude of these fluctuations in the market price of bonds and other fixed-income securities is generally greater </span><span style="color:#000000;font-family:arial;font-size:9.30pt">for those securities with longer maturities. Fluctuations in the market price of the Fund’s investments will not affect </span><span style="color:#000000;font-family:arial;font-size:9.30pt">interest income derived from instruments already owned by the Fund, but will be reflected in the Fund’s net asset </span><span style="color:#000000;font-family:arial;font-size:9.30pt">value. The Fund may lose money if short-term or long-term interest rates rise sharply in a manner not anticipated by </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Fund management.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">To the extent the Fund invests in debt securities that may be prepaid at the option of the obligor (such as mortgage-backed</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> securities), the sensitivity of such securities to changes in interest rates may increase (to the detriment of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the Fund) when interest rates rise. Moreover, because rates on certain floating rate debt securities typically reset </span><span style="color:#000000;font-family:arial;font-size:9.30pt">only periodically, changes in prevailing interest rates (and particularly sudden and significant changes) can be </span><span style="color:#000000;font-family:arial;font-size:9.30pt">expected to cause some fluctuations in the net asset value of the Fund to the extent that it invests in floating rate </span><span style="color:#000000;font-family:arial;font-size:9.30pt">debt securities.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">These basic principles of bond prices also apply to U.S. Government securities. A security backed by the “full faith </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and credit” of the U.S. Government is guaranteed only as to its stated interest rate and face value at maturity, not </span><span style="color:#000000;font-family:arial;font-size:9.30pt">its current market price. Just like other fixed-income securities, government-guaranteed securities will fluctuate in </span><span style="color:#000000;font-family:arial;font-size:9.30pt">value when interest rates change.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">A general rise in interest rates has the potential to cause investors to move out of fixed-income securities on a large </span><span style="color:#000000;font-family:arial;font-size:9.30pt">scale, which may increase redemptions from funds that hold large amounts of fixed-income securities. Heavy </span><span style="color:#000000;font-family:arial;font-size:9.30pt">redemptions could cause the Fund to sell assets at inopportune times or at a loss or depressed value and could </span><span style="color:#000000;font-family:arial;font-size:9.30pt">hurt the Fund’s performance.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Extension Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — When interest rates rise, certain obligations will be paid off by the obligor more slowly than </span><span style="color:#000000;font-family:arial;font-size:9.30pt">anticipated, causing the value of these obligations to fall.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Prepayment Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — When interest rates fall, certain obligations will be paid off by the obligor more quickly than </span><span style="color:#000000;font-family:arial;font-size:9.30pt">originally anticipated, and the Fund may have to invest the proceeds in securities with lower yields.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Index-Related Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — The index provider may rely on various sources of information to assess the criteria of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">components of the Underlying Index, including information that may be based on assumptions and estimates. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Neither the Fund nor BFA can offer assurances that the index provider’s methodology or sources of information will </span><span style="color:#000000;font-family:arial;font-size:9.30pt">provide an accurate assessment of included components. Errors in index data, index computations or the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">construction of the Underlying Index in accordance with its methodology may occur, and the index provider may not </span><span style="color:#000000;font-family:arial;font-size:9.30pt">identify or correct them promptly or at all, which may have an adverse impact on the Fund and its shareholders. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Unusual market conditions or other unforeseen circumstances (such as natural disasters, political unrest or war) </span><span style="color:#000000;font-family:arial;font-size:9.30pt">may impact the index provider or a third-party data provider and could cause the index provider to postpone a </span><span style="color:#000000;font-family:arial;font-size:9.30pt">scheduled rebalance. This could cause the Underlying Index to vary from its normal or expected composition.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Operational and Technology Risks </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The Fund is directly and indirectly susceptible to operational and technology </span><span style="color:#000000;font-family:arial;font-size:9.30pt">risks, including those related to human errors, processing errors, communication errors, systems failures, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">cybersecurity incidents, and the use of artificial intelligence and machine learning (“AI”), which may result in losses </span><span style="color:#000000;font-family:arial;font-size:9.30pt">for the Fund and its shareholders or may impair the Fund’s operations. While the Fund’s service providers are </span><span style="color:#000000;font-family:arial;font-size:9.30pt">required to have appropriate operational, information security and cybersecurity risk management policies and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">procedures, their methods of risk management may differ from those of the Fund. Operational and technology risks </span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div style="line-height:10.695pt;margin-left:12pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9.30pt">for the issuers in which the Fund invests could also result in material adverse consequences for such issuers and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">may cause the Fund’s investments in such issuers to lose value.</span></div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.0pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Representative Sampling Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">—</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> Representative sampling is a method of indexing that involves investing in a </span><span style="color:#000000;font-family:arial;font-size:9.30pt">representative sample of securities that collectively have a similar investment profile to the Underlying Index and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">resemble the Underlying Index in terms of risk factors and other key characteristics. The Fund may or may not hold </span><span style="color:#000000;font-family:arial;font-size:9.30pt">every security in the Underlying Index. When the Fund deviates from a full replication indexing strategy to utilize a </span><span style="color:#000000;font-family:arial;font-size:9.30pt">representative sampling strategy, the Fund is subject to an increased risk of tracking error, in that the securities </span><span style="color:#000000;font-family:arial;font-size:9.30pt">selected in the aggregate for the Fund may not have an investment profile similar to those of the Underlying Index.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Passive Investment Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">—</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> Because BFA does not select individual companies in the index that the Fund tracks, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the Fund may hold securities of companies that present risks that an investment adviser researching individual </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities might seek to avoid.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Tracking Error Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">—</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> The Fund is subject to the risk of “tracking error,” which is the divergence of the Fund’s </span><span style="color:#000000;font-family:arial;font-size:9.30pt">performance from that of the Underlying Index. Tracking error may occur due to a number of factors, including </span><span style="color:#000000;font-family:arial;font-size:9.30pt">differences between the securities and other assets held in the Fund’s portfolio and those included in the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Underlying Index; differences in the timing and methodologies used to value securities and other assets; </span><span style="color:#000000;font-family:arial;font-size:9.30pt">transaction costs and other expenses incurred by the Fund that the Underlying Index does not incur; the Fund’s </span><span style="color:#000000;font-family:arial;font-size:9.30pt">holding of uninvested cash; differences in the timing of the accrual or the valuation of dividends or interest received </span><span style="color:#000000;font-family:arial;font-size:9.30pt">by the Fund or distributions paid to Fund shareholders; tax gains or losses; differences between the amount and/or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">timing of withholding taxes on dividends reflected in the Underlying Index from the Fund’s obligation, if any, for </span><span style="color:#000000;font-family:arial;font-size:9.30pt">foreign withholding taxes; the requirements for the Fund to maintain pass-through tax treatment; portfolio </span><span style="color:#000000;font-family:arial;font-size:9.30pt">transactions carried out to minimize the distribution of capital gains to shareholders; changes to the Underlying </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Index, such as during a rebalancing or reconstitution; and impacts to the Fund of complying with certain regulatory </span><span style="color:#000000;font-family:arial;font-size:9.30pt">requirements or limits. A fund that tracks an index composed of a large number of securities or other assets may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">experience greater tracking error than a fund that tracks a more narrow index. Tracking error risk may be heightened </span><span style="color:#000000;font-family:arial;font-size:9.30pt">during times of increased market volatility or other unusual market conditions.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Asset Class Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — The securities and other assets or financial instruments in the Underlying Index or in the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Fund’s portfolio may underperform in comparison to financial markets generally, a particular financial market, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">another index, or other asset classes.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Income Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The Fund’s income may decline due to a decline in inflation, deflation or changes in inflation </span><span style="color:#000000;font-family:arial;font-size:9.30pt">expectations.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Indexed Securities Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Indexed securities provide a potential return based on a particular index of value or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">interest rates. The Fund’s return on these securities will be subject to risk with respect to the value of the particular </span><span style="color:#000000;font-family:arial;font-size:9.30pt">index. These securities are subject to leverage risk and correlation risk. Certain indexed securities have greater </span><span style="color:#000000;font-family:arial;font-size:9.30pt">sensitivity to changes in interest rates or index levels than other securities, and the Fund’s investment in such </span><span style="color:#000000;font-family:arial;font-size:9.30pt">instruments may decline significantly in value if interest rates or index levels move in a way Fund management does </span><span style="color:#000000;font-family:arial;font-size:9.30pt">not anticipate.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Management Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — As the Fund may not fully replicate the Underlying Index, it is subject to the risk that BFA’s </span><span style="color:#000000;font-family:arial;font-size:9.30pt">investment strategy may not produce the intended results.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Market Risk and Selection Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Market risk is the risk that one or more markets in which the Fund invests will </span><span style="color:#000000;font-family:arial;font-size:9.30pt">go down in value, including the possibility that the markets will go down sharply and unpredictably. The value of a </span><span style="color:#000000;font-family:arial;font-size:9.30pt">security or other asset may decline due to changes in general market conditions, economic trends or events that </span><span style="color:#000000;font-family:arial;font-size:9.30pt">are not specifically related to the issuer of the security or other asset, or factors that affect a particular issuer or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">issuers, exchange, country, group of countries, region, market, industry, group of industries, sector or asset class. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health </span><span style="color:#000000;font-family:arial;font-size:9.30pt">issues like pandemics or epidemics, recessions, or other events could have a significant impact on the Fund and its </span><span style="color:#000000;font-family:arial;font-size:9.30pt">investments. Selection risk is the risk that the securities selected by Fund management will underperform the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">markets, the relevant indices or the securities selected by other funds with similar investment objectives and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">investment strategies. This means you may lose money.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Risk of Investing in the United States </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">—</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> Certain changes in the U.S. economy, such as when the U.S. economy </span><span style="color:#000000;font-family:arial;font-size:9.30pt">weakens or when its financial markets decline, may have an adverse effect on the securities to which the Fund has </span><span style="color:#000000;font-family:arial;font-size:9.30pt">exposure.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> Performance Information <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The Fund adopted the performance of State Farm Tax Advantaged Bond Fund (the “Predecessor Fund”), a series of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">State Farm Mutual Fund Trust, as a result of a reorganization (the “Reorganization”) that was completed on </span><span style="color:#000000;font-family:arial;font-size:9.30pt">November 19, 2018 in which the Fund acquired all of the assets and assumed certain stated liabilities of the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Predecessor Fund. The returns presented for the Fund for the periods prior to November 19, 2018 reflect the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">performance of the Predecessor Fund. Performance shown below for the periods prior to November 19, 2018 is based </span><span style="color:#000000;font-family:arial;font-size:9.30pt">on the investment objective and investment strategies utilized by the Predecessor Fund, which differed from those of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the Fund. The Predecessor Fund was managed by a different investment adviser and had a different portfolio </span><span style="color:#000000;font-family:arial;font-size:9.30pt">management team from that of the Fund. The returns presented for Investor A Shares of the Fund for the periods prior </span><span style="color:#000000;font-family:arial;font-size:9.30pt">to November 19, 2018 reflect the performance of Premier Shares of the Predecessor Fund. The performance </span><span style="color:#000000;font-family:arial;font-size:9.30pt">information for Institutional Shares prior to November 19, 2018, the commencement of operations of Institutional </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Shares, shows the performance of the Fund’s Investor A Shares, which adopted the performance of the Premier </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Shares of the Predecessor Fund. The performance of the Fund’s Institutional Shares would be substantially similar to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Investor A Shares because Institutional Shares and Investor A Shares invest in the same portfolio of securities and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">performance would only differ to the extent that Institutional Shares and Investor A Shares have different expenses. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">The actual returns of Institutional Shares would have been higher than those of the Investor A Shares because </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Institutional Shares have lower expenses than the Investor A Shares.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The information shows you how the Fund’s performance has varied year by year and provides some indication of the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">risks of investing in the Fund. The table compares the Fund’s performance to that of the Underlying Index. To the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">extent that dividends and distributions have been paid by the Fund, the performance information for the Fund in the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">chart and table assumes reinvestment of the dividends and distributions. As with all such investments, past </span><span style="color:#000000;font-family:arial;font-size:9.30pt">performance (before and after taxes) is not an indication of future results. The table includes all applicable fees. If the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">investment manager to the Fund, the investment adviser to the Predecessor Fund and their affiliates had not waived or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">reimbursed certain Predecessor Fund or Fund expenses during these periods, the Fund’s returns would have been </span><span style="color:#000000;font-family:arial;font-size:9.30pt">lower. Updated information on the Fund’s performance, including its current net asset value, can be obtained by </span><span style="color:#000000;font-family:arial;font-size:9.30pt">visiting www.blackrock.com or can be obtained by phone at </span><span style="color:#000000;font-family:arial;font-size:9.30pt">(800) 882-0052</span><span style="color:#000000;font-family:arial;font-size:9.30pt">.</span></div> The information shows you how the Fund’s performance has varied year by year and provides some indication of the risks of investing in the Fund. As with all such investments, past performance (before and after taxes) is not an indication of future results. www.blackrock.com (800) 882-0052 Investor A Shares ANNUAL TOTAL RETURNS iShares Municipal Bond Index Fund As of 12/31 <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">During the ten-year period shown in the bar chart, the highest return for a quarter was 7.72% (quarter ended </span><span style="color:#000000;font-family:arial;font-size:9.30pt">December 31, 2023) and the lowest return for a quarter was -5.96% (quarter ended March 31, 2022).</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span><span style="color:#000000;font-family:arial;font-size:1pt;line-height:0.93pt"> </span></div> highest return 0.0772 2023-12-31 lowest return -0.0596 2022-03-31 For the periods ended 12/31/25Average Annual Total Returns 0.0344 0.0049 0.0196 0.0344 0.0048 0.0192 0.0331 0.0097 0.0209 0.0370 0.0074 0.0215 0.0392 0.0081 0.0236 <div style="line-height:10.695pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9.30pt">After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not </span><span style="color:#000000;font-family:arial;font-size:9.30pt">reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">differ from those shown, and the after-tax returns shown are not relevant to investors who hold their shares through </span><span style="color:#000000;font-family:arial;font-size:9.30pt">tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Investor A Shares only, and the after-tax returns for Institutional Shares will vary.</span></div> After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may differ from those shown, and the after-tax returns shown are not relevant to investors who hold their shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Investor A Shares only, and the after-tax returns for Institutional Shares will vary. Fund Overview Key Facts About iShares Municipal Bond Index Fund Investment Objective <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The investment objective of iShares Municipal Bond Index Fund (the “Fund”), a series of BlackRock Funds</span><span style="color:#000000;font-family:arial;font-size:5pt;position:relative;top:-3.25pt">SM</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> (the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">“Trust”), is to seek to provide investment results that correspond to the total return performance of fixed-income </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities in the aggregate, as represented by the ICE BofA US Municipal Securities Index (the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">“</span><span style="color:#000000;font-family:arial;font-size:9.30pt">Underlying Index</span><span style="color:#000000;font-family:arial;font-size:9.30pt">”</span><span style="color:#000000;font-family:arial;font-size:9.30pt">).</span></div> Fees and Expenses of the Fund <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">This table describes the fees and expenses that you may pay if you buy, hold and sell Class K Shares of the Fund. </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">You </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">may pay other fees, such as brokerage commissions and other fees to your financial professional or selected </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">securities dealer, broker, investment adviser, service provider or industry professional (including BlackRock Fund </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">Advisors (</span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">“</span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">BFA</span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">”</span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">) and its affiliates) (each, a </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">“</span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">Financial Intermediary</span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">”</span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">), which are not reflected in the table and </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">example below.</span><span style="color:#000000;font-family:arial;font-size:1pt;line-height:0.93pt"> </span></div> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0010 0 0.0020 0.0030 -0.0010 0.0020 June 30, 2027 The Total Annual Fund Operating Expenses and Other Expenses do not correlate to the ratios of expenses to average net assets given in the Fund’s most recent Annual Financial Statements and Additional Information, which do not include Acquired Fund Fees and Expenses. Example: <div style="line-height:10.695pt;margin-top:0.0pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9.30pt">This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other </span><span style="color:#000000;font-family:arial;font-size:9.30pt">mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then </span><span style="color:#000000;font-family:arial;font-size:9.30pt">redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% </span><span style="color:#000000;font-family:arial;font-size:9.30pt">return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher </span><span style="color:#000000;font-family:arial;font-size:9.30pt">or lower, based on these assumptions your costs would be:</span><span style="color:#000000;font-family:arial;font-size:1pt;line-height:0.93pt"> </span></div> 20 86 159 371 Portfolio Turnover: <div style="line-height:10.695pt;margin-top:0.0pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its </span><span style="color:#000000;font-family:arial;font-size:9.30pt">portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when </span><span style="color:#000000;font-family:arial;font-size:9.30pt">shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the </span></div><div style="line-height:10.695pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9.30pt">Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was </span><span style="color:#000000;font-family:arial;font-size:9.30pt">38</span><span style="color:#000000;font-family:arial;font-size:9.30pt">% of the average value of its portfolio.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> 0.38 Principal Investment Strategies of the Fund <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The Fund seeks to track the investment results of the Underlying Index, which tracks the performance of U.S. dollar </span><span style="color:#000000;font-family:arial;font-size:9.30pt">denominated investment grade tax-exempt debt publicly issued by U.S. states and territories, and their political </span><span style="color:#000000;font-family:arial;font-size:9.30pt">subdivisions, in the U.S. domestic market. Qualifying securities must have at least one year remaining term to final </span><span style="color:#000000;font-family:arial;font-size:9.30pt">maturity, at least 18 months to final maturity at the time of issuance, a fixed coupon schedule and an investment </span><span style="color:#000000;font-family:arial;font-size:9.30pt">grade rating (based on an average of Moody’s, S&amp;P and Fitch). Minimum size requirements vary based on the initial </span><span style="color:#000000;font-family:arial;font-size:9.30pt">term to final maturity at time of issuance. The Underlying Index contains 2,018 issuers as of March 31, 2026 and was </span><span style="color:#000000;font-family:arial;font-size:9.30pt">created on December 31, 1988.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">BFA uses a representative sampling indexing strategy to manage the Fund. “Representative sampling” is an indexing </span><span style="color:#000000;font-family:arial;font-size:9.30pt">strategy that involves investing in a representative sample of securities that collectively has an investment profile </span><span style="color:#000000;font-family:arial;font-size:9.30pt">similar to that of the Underlying Index. The securities selected are expected to have, in the aggregate, investment </span><span style="color:#000000;font-family:arial;font-size:9.30pt">characteristics (based on factors such as market capitalization and industry weightings), fundamental characteristics </span><span style="color:#000000;font-family:arial;font-size:9.30pt">(such as return variability and yield) and liquidity measures similar to those of the Underlying Index. The Fund may or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">may not hold all of the securities in the Underlying Index.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The Fund generally invests at least 80% of its assets, plus the amount of any borrowings for investment purposes, in </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities or other financial instruments that are components of or have economic characteristics similar to the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities in the Underlying Index. The Fund may invest a portion of the remainder of its assets in securities not </span><span style="color:#000000;font-family:arial;font-size:9.30pt">included in the Underlying Index, but which BFA believes will help the Fund track the Underlying Index.</span></div> You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Municipal Securities Risks </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Municipal securities risks include the ability of the issuer to repay the obligation, the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">relative lack of information about certain issuers of municipal securities, and the possibility of future legislative </span><span style="color:#000000;font-family:arial;font-size:9.30pt">changes which could affect the market for and value of municipal securities. Budgetary constraints of local, state, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and federal governments upon which the issuers may be relying for funding may also impact municipal securities. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">These risks include:</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">General Obligation Bonds Risks</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Timely payments depend on the issuer’s credit quality, ability to raise tax </span><span style="color:#000000;font-family:arial;font-size:9.30pt">revenues and ability to maintain an adequate tax base.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Revenue Bonds Risks </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— These payments depend on the money earned by the particular facility or class of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">facilities, or the amount of revenues derived from another source.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Private Activity Bonds Risks</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Municipalities and other public authorities issue private activity bonds to finance </span><span style="color:#000000;font-family:arial;font-size:9.30pt">development of industrial facilities for use by a private enterprise. The private enterprise pays the principal and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">interest on the bond, and the issuer does not pledge its full faith, credit and taxing power for repayment.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Moral Obligation Bonds Risks</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Moral obligation bonds are generally issued by special purpose public authorities </span><span style="color:#000000;font-family:arial;font-size:9.30pt">of a state or municipality. If the issuer is unable to meet its obligations, repayment of these bonds becomes a moral </span><span style="color:#000000;font-family:arial;font-size:9.30pt">commitment, but not a legal obligation, of the state or municipality.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Municipal Notes Risks</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Municipal notes are shorter term municipal debt obligations. If there is a shortfall in the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">anticipated proceeds, the notes may not be fully repaid and the Fund may lose money.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Municipal Lease Obligations Risks</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — In a municipal lease obligation, the issuer agrees to make payments when </span><span style="color:#000000;font-family:arial;font-size:9.30pt">due on the lease obligation. Although the issuer does not pledge its unlimited taxing power for payment of the lease </span><span style="color:#000000;font-family:arial;font-size:9.30pt">obligation, the lease obligation is secured by the leased property.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Tax-Exempt Status Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — The Fund and its investment manager will rely on the opinion of issuers’ bond counsel </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and, in the case of derivative securities, sponsors’ counsel, on the tax-exempt status of interest on municipal bonds </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and payments under derivative securities. Neither the Fund nor its investment manager will independently review the </span></div><div style="line-height:10.695pt;margin-left:12pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9.30pt">bases for those tax opinions, which may ultimately be determined to be incorrect and subject the Fund and its </span><span style="color:#000000;font-family:arial;font-size:9.30pt">shareholders to substantial tax liabilities.</span></div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Debt Securities Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Debt securities, such as bonds, involve risks, such as credit risk, interest rate risk, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">extension risk, and prepayment risk, each of which are described in further detail below:</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Credit Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Credit risk refers to the possibility that the issuer of a debt security (i.e., the borrower) will not be </span><span style="color:#000000;font-family:arial;font-size:9.30pt">able to make payments of interest and principal when due. Changes in an issuer’s credit rating or the market’s </span><span style="color:#000000;font-family:arial;font-size:9.30pt">perception of an issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The </span><span style="color:#000000;font-family:arial;font-size:9.30pt">degree of credit risk depends on both the financial condition of the issuer and the terms of the obligation.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Interest Rate Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — The market value of bonds and other fixed-income securities changes in response to interest </span><span style="color:#000000;font-family:arial;font-size:9.30pt">rate changes and other factors. Interest rate risk is the risk that prices of bonds and other fixed-income securities </span><span style="color:#000000;font-family:arial;font-size:9.30pt">will increase as interest rates fall and decrease as interest rates rise.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The Fund may be subject to a greater risk of rising interest rates during a period of historically low interest rates. For </span><span style="color:#000000;font-family:arial;font-size:9.30pt">example, if interest rates increase by 1%, assuming a current portfolio duration of ten years, and all other factors </span><span style="color:#000000;font-family:arial;font-size:9.30pt">being equal, the value of the Fund’s investments would be expected to decrease by 10%. (Duration is a measure of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the price sensitivity of a debt security or portfolio of debt securities to relative changes in interest rates.) The </span><span style="color:#000000;font-family:arial;font-size:9.30pt">magnitude of these fluctuations in the market price of bonds and other fixed-income securities is generally greater </span><span style="color:#000000;font-family:arial;font-size:9.30pt">for those securities with longer maturities. Fluctuations in the market price of the Fund’s investments will not affect </span><span style="color:#000000;font-family:arial;font-size:9.30pt">interest income derived from instruments already owned by the Fund, but will be reflected in the Fund’s net asset </span><span style="color:#000000;font-family:arial;font-size:9.30pt">value. The Fund may lose money if short-term or long-term interest rates rise sharply in a manner not anticipated by </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Fund management.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">To the extent the Fund invests in debt securities that may be prepaid at the option of the obligor (such as mortgage-backed</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> securities), the sensitivity of such securities to changes in interest rates may increase (to the detriment of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the Fund) when interest rates rise. Moreover, because rates on certain floating rate debt securities typically reset </span><span style="color:#000000;font-family:arial;font-size:9.30pt">only periodically, changes in prevailing interest rates (and particularly sudden and significant changes) can be </span><span style="color:#000000;font-family:arial;font-size:9.30pt">expected to cause some fluctuations in the net asset value of the Fund to the extent that it invests in floating rate </span><span style="color:#000000;font-family:arial;font-size:9.30pt">debt securities.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">These basic principles of bond prices also apply to U.S. Government securities. A security backed by the “full faith </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and credit” of the U.S. Government is guaranteed only as to its stated interest rate and face value at maturity, not </span><span style="color:#000000;font-family:arial;font-size:9.30pt">its current market price. Just like other fixed-income securities, government-guaranteed securities will fluctuate in </span><span style="color:#000000;font-family:arial;font-size:9.30pt">value when interest rates change.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">A general rise in interest rates has the potential to cause investors to move out of fixed-income securities on a large </span><span style="color:#000000;font-family:arial;font-size:9.30pt">scale, which may increase redemptions from funds that hold large amounts of fixed-income securities. Heavy </span><span style="color:#000000;font-family:arial;font-size:9.30pt">redemptions could cause the Fund to sell assets at inopportune times or at a loss or depressed value and could </span><span style="color:#000000;font-family:arial;font-size:9.30pt">hurt the Fund’s performance.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Extension Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — When interest rates rise, certain obligations will be paid off by the obligor more slowly than </span><span style="color:#000000;font-family:arial;font-size:9.30pt">anticipated, causing the value of these obligations to fall.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Prepayment Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — When interest rates fall, certain obligations will be paid off by the obligor more quickly than </span><span style="color:#000000;font-family:arial;font-size:9.30pt">originally anticipated, and the Fund may have to invest the proceeds in securities with lower yields.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Index-Related Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — The index provider may rely on various sources of information to assess the criteria of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">components of the Underlying Index, including information that may be based on assumptions and estimates. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Neither the Fund nor BFA can offer assurances that the index provider’s methodology or sources of information will </span><span style="color:#000000;font-family:arial;font-size:9.30pt">provide an accurate assessment of included components. Errors in index data, index computations or the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">construction of the Underlying Index in accordance with its methodology may occur, and the index provider may not </span><span style="color:#000000;font-family:arial;font-size:9.30pt">identify or correct them promptly or at all, which may have an adverse impact on the Fund and its shareholders. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Unusual market conditions or other unforeseen circumstances (such as natural disasters, political unrest or war) </span><span style="color:#000000;font-family:arial;font-size:9.30pt">may impact the index provider or a third-party data provider and could cause the index provider to postpone a </span><span style="color:#000000;font-family:arial;font-size:9.30pt">scheduled rebalance. This could cause the Underlying Index to vary from its normal or expected composition.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Operational and Technology Risks </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The Fund is directly and indirectly susceptible to operational and technology </span><span style="color:#000000;font-family:arial;font-size:9.30pt">risks, including those related to human errors, processing errors, communication errors, systems failures, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">cybersecurity incidents, and the use of artificial intelligence and machine learning (“AI”), which may result in losses </span><span style="color:#000000;font-family:arial;font-size:9.30pt">for the Fund and its shareholders or may impair the Fund’s operations. While the Fund’s service providers are </span><span style="color:#000000;font-family:arial;font-size:9.30pt">required to have appropriate operational, information security and cybersecurity risk management policies and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">procedures, their methods of risk management may differ from those of the Fund. Operational and technology risks </span><span style="color:#000000;font-family:arial;font-size:9.30pt">for the issuers in which the Fund invests could also result in material adverse consequences for such issuers and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">may cause the Fund’s investments in such issuers to lose value.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.0pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Representative Sampling Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">—</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> Representative sampling is a method of indexing that involves investing in a </span><span style="color:#000000;font-family:arial;font-size:9.30pt">representative sample of securities that collectively have a similar investment profile to the Underlying Index and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">resemble the Underlying Index in terms of risk factors and other key characteristics. The Fund may or may not hold </span><span style="color:#000000;font-family:arial;font-size:9.30pt">every security in the Underlying Index. When the Fund deviates from a full replication indexing strategy to utilize a </span><span style="color:#000000;font-family:arial;font-size:9.30pt">representative sampling strategy, the Fund is subject to an increased risk of tracking error, in that the securities </span><span style="color:#000000;font-family:arial;font-size:9.30pt">selected in the aggregate for the Fund may not have an investment profile similar to those of the Underlying Index.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Passive Investment Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">—</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> Because BFA does not select individual companies in the index that the Fund tracks, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the Fund may hold securities of companies that present risks that an investment adviser researching individual </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities might seek to avoid.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Tracking Error Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">—</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> The Fund is subject to the risk of “tracking error,” which is the divergence of the Fund’s </span><span style="color:#000000;font-family:arial;font-size:9.30pt">performance from that of the Underlying Index. Tracking error may occur due to a number of factors, including </span><span style="color:#000000;font-family:arial;font-size:9.30pt">differences between the securities and other assets held in the Fund’s portfolio and those included in the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Underlying Index; differences in the timing and methodologies used to value securities and other assets; </span><span style="color:#000000;font-family:arial;font-size:9.30pt">transaction costs and other expenses incurred by the Fund that the Underlying Index does not incur; the Fund’s </span><span style="color:#000000;font-family:arial;font-size:9.30pt">holding of uninvested cash; differences in the timing of the accrual or the valuation of dividends or interest received </span><span style="color:#000000;font-family:arial;font-size:9.30pt">by the Fund or distributions paid to Fund shareholders; tax gains or losses; differences between the amount and/or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">timing of withholding taxes on dividends reflected in the Underlying Index from the Fund’s obligation, if any, for </span><span style="color:#000000;font-family:arial;font-size:9.30pt">foreign withholding taxes; the requirements for the Fund to maintain pass-through tax treatment; portfolio </span><span style="color:#000000;font-family:arial;font-size:9.30pt">transactions carried out to minimize the distribution of capital gains to shareholders; changes to the Underlying </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Index, such as during a rebalancing or reconstitution; and impacts to the Fund of complying with certain regulatory </span><span style="color:#000000;font-family:arial;font-size:9.30pt">requirements or limits. A fund that tracks an index composed of a large number of securities or other assets may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">experience greater tracking error than a fund that tracks a more narrow index. Tracking error risk may be heightened </span><span style="color:#000000;font-family:arial;font-size:9.30pt">during times of increased market volatility or other unusual market conditions.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Asset Class Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — The securities and other assets or financial instruments in the Underlying Index or in the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Fund’s portfolio may underperform in comparison to financial markets generally, a particular financial market, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">another index, or other asset classes.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Income Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The Fund’s income may decline due to a decline in inflation, deflation or changes in inflation </span><span style="color:#000000;font-family:arial;font-size:9.30pt">expectations.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Indexed Securities Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Indexed securities provide a potential return based on a particular index of value or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">interest rates. The Fund’s return on these securities will be subject to risk with respect to the value of the particular </span><span style="color:#000000;font-family:arial;font-size:9.30pt">index. These securities are subject to leverage risk and correlation risk. Certain indexed securities have greater </span><span style="color:#000000;font-family:arial;font-size:9.30pt">sensitivity to changes in interest rates or index levels than other securities, and the Fund’s investment in such </span><span style="color:#000000;font-family:arial;font-size:9.30pt">instruments may decline significantly in value if interest rates or index levels move in a way Fund management does </span><span style="color:#000000;font-family:arial;font-size:9.30pt">not anticipate.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Management Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — As the Fund may not fully replicate the Underlying Index, it is subject to the risk that BFA’s </span><span style="color:#000000;font-family:arial;font-size:9.30pt">investment strategy may not produce the intended results.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Market Risk and Selection Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Market risk is the risk that one or more markets in which the Fund invests will </span><span style="color:#000000;font-family:arial;font-size:9.30pt">go down in value, including the possibility that the markets will go down sharply and unpredictably. The value of a </span><span style="color:#000000;font-family:arial;font-size:9.30pt">security or other asset may decline due to changes in general market conditions, economic trends or events that </span><span style="color:#000000;font-family:arial;font-size:9.30pt">are not specifically related to the issuer of the security or other asset, or factors that affect a particular issuer or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">issuers, exchange, country, group of countries, region, market, industry, group of industries, sector or asset class. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health </span><span style="color:#000000;font-family:arial;font-size:9.30pt">issues like pandemics or epidemics, recessions, or other events could have a significant impact on the Fund and its </span><span style="color:#000000;font-family:arial;font-size:9.30pt">investments. Selection risk is the risk that the securities selected by Fund management will underperform the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">markets, the relevant indices or the securities selected by other funds with similar investment objectives and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">investment strategies. This means you may lose money.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Risk of Investing in the United States </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">—</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> Certain changes in the U.S. economy, such as when the U.S. economy </span><span style="color:#000000;font-family:arial;font-size:9.30pt">weakens or when its financial markets decline, may have an adverse effect on the securities to which the Fund has </span><span style="color:#000000;font-family:arial;font-size:9.30pt">exposure.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> Performance Information <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The Fund adopted the performance of State Farm Tax Advantaged Bond Fund (the “Predecessor Fund”), a series of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">State Farm Mutual Fund Trust, as a result of a reorganization (the “Reorganization”) that was completed on </span><span style="color:#000000;font-family:arial;font-size:9.30pt">November 19, 2018 in which the Fund acquired all of the assets and assumed certain stated liabilities of the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Predecessor Fund. The returns presented for the Fund for the periods prior to November 19, 2018 reflect the </span></div><div style="line-height:10.695pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9.30pt">performance of the Predecessor Fund. Performance shown below for the periods prior to November 19, 2018 is based </span><span style="color:#000000;font-family:arial;font-size:9.30pt">on the investment objective and investment strategies utilized by the Predecessor Fund, which differed from those of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the Fund. The Predecessor Fund was managed by a different investment adviser and had a different portfolio </span><span style="color:#000000;font-family:arial;font-size:9.30pt">management team from that of the Fund. Class K Shares of the Fund commenced operations November 19, 2018. As </span><span style="color:#000000;font-family:arial;font-size:9.30pt">a result, the returns shown below for Class K Shares prior to November 19, 2018 are those of the Fund’s Investor A </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Shares, which are not offered in this prospectus. For the periods prior to November 19, 2018, Investor A Shares </span><span style="color:#000000;font-family:arial;font-size:9.30pt">adopted the performance of Premier Shares of the Predecessor Fund. The performance of the Fund’s Class K Shares </span><span style="color:#000000;font-family:arial;font-size:9.30pt">would be substantially similar to Investor A Shares because Class K Shares and Investor A Shares invest in the same </span><span style="color:#000000;font-family:arial;font-size:9.30pt">portfolio of securities and performance would only differ to the extent that Class K Shares and Investor A Shares have </span><span style="color:#000000;font-family:arial;font-size:9.30pt">different expenses. The actual returns of Class K Shares would have been higher than those of the Investor A Shares </span><span style="color:#000000;font-family:arial;font-size:9.30pt">because Class K Shares have lower expenses than the Investor A Shares.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The information shows you how the Fund’s performance has varied year by year and provides some indication of the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">risks of investing in the Fund. The table compares the Fund’s performance to that of the Underlying Index. To the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">extent that dividends and distributions have been paid by the Fund, the performance information for the Fund in the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">chart and table assumes reinvestment of the dividends and distributions. As with all such investments, past </span><span style="color:#000000;font-family:arial;font-size:9.30pt">performance (before and after taxes) is not an indication of future results. The table includes all applicable fees. If the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">investment manager to the Fund, the investment adviser to the Predecessor Fund and their affiliates had not waived or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">reimbursed certain Predecessor Fund or Fund expenses during these periods, the Fund’s returns would have been </span><span style="color:#000000;font-family:arial;font-size:9.30pt">lower. Updated information on the Fund’s performance, including its current net asset value, can be obtained by </span><span style="color:#000000;font-family:arial;font-size:9.30pt">visiting www.blackrock.com or can be obtained by phone at </span><span style="color:#000000;font-family:arial;font-size:9.30pt">(800) 882-0052</span><span style="color:#000000;font-family:arial;font-size:9.30pt">.</span></div> The information shows you how the Fund’s performance has varied year by year and provides some indication of the risks of investing in the Fund. As with all such investments, past performance (before and after taxes) is not an indication of future results. www.blackrock.com (800) 882-0052 Class K Shares ANNUAL TOTAL RETURNS iShares Municipal Bond Index Fund As of 12/31 <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">During the ten-year period shown in the bar chart, the highest return for a quarter was 7.79% (quarter ended </span><span style="color:#000000;font-family:arial;font-size:9.30pt">December 31, 2023) and the lowest return for a quarter was -5.89% (quarter ended March 31, 2022).</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span><span style="color:#000000;font-family:arial;font-size:1pt;line-height:0.93pt"> </span></div> highest return 0.0779 2023-12-31 lowest return -0.0589 2022-03-31 For the periods ended 12/31/25Average Annual Total Returns 0.0374 0.0079 0.0218 0.0374 0.0078 0.0213 0.0361 0.0126 0.0230 0.0392 0.0081 0.0236 <div style="margin-top:12pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not </span><span style="color:#000000;font-family:arial;font-size:9.30pt">reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">differ from those shown, and the after-tax returns shown are not relevant to investors who hold their shares through </span><span style="color:#000000;font-family:arial;font-size:9.30pt">tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may differ from those shown, and the after-tax returns shown are not relevant to investors who hold their shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. Fund Overview Key Facts About iShares Municipal Bond Index Fund Investment Objective <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The investment objective of iShares Municipal Bond Index Fund (the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">“</span><span style="color:#000000;font-family:arial;font-size:9.30pt">Fund</span><span style="color:#000000;font-family:arial;font-size:9.30pt">”</span><span style="color:#000000;font-family:arial;font-size:9.30pt">), a series of BlackRock Funds</span><span style="color:#000000;font-family:arial;font-size:5pt;position:relative;top:-3.25pt">SM </span><span style="color:#000000;font-family:arial;font-size:9.30pt">(the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">“</span><span style="color:#000000;font-family:arial;font-size:9.30pt">Trust</span><span style="color:#000000;font-family:arial;font-size:9.30pt">”</span><span style="color:#000000;font-family:arial;font-size:9.30pt">), is to seek to provide investment results that correspond to the total return performance of fixed-income </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities in the aggregate, as represented by the ICE BofA US Municipal Securities Index (the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">“</span><span style="color:#000000;font-family:arial;font-size:9.30pt">Underlying Index</span><span style="color:#000000;font-family:arial;font-size:9.30pt">”</span><span style="color:#000000;font-family:arial;font-size:9.30pt">).</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> Fees and Expenses of the Fund <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">You may pay </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">other fees, such as brokerage commissions and other fees to your Financial Intermediary (as defined below), which </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">are not reflected in the table and example below.</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> You may qualify for sales charge discounts if you and your family </span><span style="color:#000000;font-family:arial;font-size:9.30pt">invest, or agree to invest in the future, at least $25,000 in the fund complex advised by BlackRock Fund Advisors </span><span style="color:#000000;font-family:arial;font-size:9.30pt">(“BFA”) or its affiliates. More information about these and other discounts is available from your Financial Intermediary </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and in the “Details About the Share Class” section on page 19 of the Fund’s prospectus and in the “Purchase of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Shares” section on page II-98 of Part II of the Fund’s Statement of Additional Information (the “SAI”).</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span><span style="color:#000000;font-family:arial;font-size:1pt;line-height:0.93pt"> </span></div> You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $25,000 in the fund complex advised by BlackRock Fund Advisors (“BFA”) or its affiliates. 25000 Shareholder Fees (fees paid directly from your investment) 0.0400 0 Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0010 0.0025 0.0022 0.0057 -0.0007 0.0050 A contingent deferred sales charge (“CDSC”) of 0.15% is assessed on certain redemptions of Investor P Shares made within 18 months after purchase where no initial sales charge was paid at the time of purchase as part of an investment of $1,000,000 or more. June 30, 2027 The Total Annual Fund Operating Expenses and Other Expenses do not correlate to the ratios of expenses to average net assets given in the Fund’s most recent Annual Financial Statements and Additional Information, which do not include Acquired Fund Fees and Expenses. Example: <div style="line-height:10.695pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9.30pt">This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other </span><span style="color:#000000;font-family:arial;font-size:9.30pt">mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then </span><span style="color:#000000;font-family:arial;font-size:9.30pt">redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% </span></div><div style="line-height:10.695pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9.30pt">return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher </span><span style="color:#000000;font-family:arial;font-size:9.30pt">or lower, based on these assumptions your costs would be:</span><span style="color:#000000;font-family:arial;font-size:1pt;line-height:0.93pt"> </span></div> 449 569 699 1079 Portfolio Turnover: <div style="line-height:10.695pt;margin-top:0.0pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its </span><span style="color:#000000;font-family:arial;font-size:9.30pt">portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when </span><span style="color:#000000;font-family:arial;font-size:9.30pt">shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was </span><span style="color:#000000;font-family:arial;font-size:9.30pt">38</span><span style="color:#000000;font-family:arial;font-size:9.30pt">% of the average value of its portfolio.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> 0.38 Principal Investment Strategies of the Fund <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The Fund seeks to track the investment results of the Underlying Index, which tracks the performance of U.S. dollar </span><span style="color:#000000;font-family:arial;font-size:9.30pt">denominated investment grade tax-exempt debt publicly issued by U.S. states and territories, and their political </span><span style="color:#000000;font-family:arial;font-size:9.30pt">subdivisions, in the U.S. domestic market. Qualifying securities must have at least one year remaining term to final </span><span style="color:#000000;font-family:arial;font-size:9.30pt">maturity, at least 18 months to final maturity at the time of issuance, a fixed coupon schedule and an investment </span><span style="color:#000000;font-family:arial;font-size:9.30pt">grade rating (based on an average of Moody’s, S&amp;P and Fitch). Minimum size requirements vary based on the initial </span><span style="color:#000000;font-family:arial;font-size:9.30pt">term to final maturity at time of issuance. The Underlying Index contains 2,018 issuers as of March 31, 2026 and was </span><span style="color:#000000;font-family:arial;font-size:9.30pt">created on December 31, 1988.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">BFA uses a representative sampling indexing strategy to manage the Fund. “Representative sampling” is an indexing </span><span style="color:#000000;font-family:arial;font-size:9.30pt">strategy that involves investing in a representative sample of securities that collectively has an investment profile </span><span style="color:#000000;font-family:arial;font-size:9.30pt">similar to that of the Underlying Index. The securities selected are expected to have, in the aggregate, investment </span><span style="color:#000000;font-family:arial;font-size:9.30pt">characteristics (based on factors such as market capitalization and industry weightings), fundamental characteristics </span><span style="color:#000000;font-family:arial;font-size:9.30pt">(such as return variability and yield) and liquidity measures similar to those of the Underlying Index. The Fund may or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">may not hold all of the securities in the Underlying Index.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The Fund generally invests at least 80% of its assets, plus the amount of any borrowings for investment purposes, in </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities or other financial instruments that are components of or have economic characteristics similar to the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities in the Underlying Index. The Fund may invest a portion of the remainder of its assets in securities not </span><span style="color:#000000;font-family:arial;font-size:9.30pt">included in the Underlying Index, but which BFA believes will help the Fund track the Underlying Index.</span></div> You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Municipal Securities Risks </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Municipal securities risks include the ability of the issuer to repay the obligation, the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">relative lack of information about certain issuers of municipal securities, and the possibility of future legislative </span><span style="color:#000000;font-family:arial;font-size:9.30pt">changes which could affect the market for and value of municipal securities. Budgetary constraints of local, state, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and federal governments upon which the issuers may be relying for funding may also impact municipal securities. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">These risks include:</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">General Obligation Bonds Risks</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Timely payments depend on the issuer’s credit quality, ability to raise tax </span><span style="color:#000000;font-family:arial;font-size:9.30pt">revenues and ability to maintain an adequate tax base.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Revenue Bonds Risks </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— These payments depend on the money earned by the particular facility or class of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">facilities, or the amount of revenues derived from another source.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Private Activity Bonds Risks</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Municipalities and other public authorities issue private activity bonds to finance </span><span style="color:#000000;font-family:arial;font-size:9.30pt">development of industrial facilities for use by a private enterprise. The private enterprise pays the principal and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">interest on the bond, and the issuer does not pledge its full faith, credit and taxing power for repayment.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Moral Obligation Bonds Risks</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Moral obligation bonds are generally issued by special purpose public authorities </span><span style="color:#000000;font-family:arial;font-size:9.30pt">of a state or municipality. If the issuer is unable to meet its obligations, repayment of these bonds becomes a moral </span><span style="color:#000000;font-family:arial;font-size:9.30pt">commitment, but not a legal obligation, of the state or municipality.</span></div><div style="line-height:10.695pt;margin-left:12pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Municipal Notes Risks</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Municipal notes are shorter term municipal debt obligations. If there is a shortfall in the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">anticipated proceeds, the notes may not be fully repaid and the Fund may lose money.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Municipal Lease Obligations Risks</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — In a municipal lease obligation, the issuer agrees to make payments when </span><span style="color:#000000;font-family:arial;font-size:9.30pt">due on the lease obligation. Although the issuer does not pledge its unlimited taxing power for payment of the lease </span><span style="color:#000000;font-family:arial;font-size:9.30pt">obligation, the lease obligation is secured by the leased property.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Tax-Exempt Status Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — The Fund and its investment manager will rely on the opinion of issuers’ bond counsel </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and, in the case of derivative securities, sponsors’ counsel, on the tax-exempt status of interest on municipal bonds </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and payments under derivative securities. Neither the Fund nor its investment manager will independently review the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">bases for those tax opinions, which may ultimately be determined to be incorrect and subject the Fund and its </span><span style="color:#000000;font-family:arial;font-size:9.30pt">shareholders to substantial tax liabilities.</span></div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Debt Securities Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Debt securities, such as bonds, involve risks, such as credit risk, interest rate risk, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">extension risk, and prepayment risk, each of which are described in further detail below:</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Credit Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Credit risk refers to the possibility that the issuer of a debt security (i.e., the borrower) will not be </span><span style="color:#000000;font-family:arial;font-size:9.30pt">able to make payments of interest and principal when due. Changes in an issuer’s credit rating or the market’s </span><span style="color:#000000;font-family:arial;font-size:9.30pt">perception of an issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The </span><span style="color:#000000;font-family:arial;font-size:9.30pt">degree of credit risk depends on both the financial condition of the issuer and the terms of the obligation.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Interest Rate Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — The market value of bonds and other fixed-income securities changes in response to interest </span><span style="color:#000000;font-family:arial;font-size:9.30pt">rate changes and other factors. Interest rate risk is the risk that prices of bonds and other fixed-income securities </span><span style="color:#000000;font-family:arial;font-size:9.30pt">will increase as interest rates fall and decrease as interest rates rise.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The Fund may be subject to a greater risk of rising interest rates during a period of historically low interest rates. For </span><span style="color:#000000;font-family:arial;font-size:9.30pt">example, if interest rates increase by 1%, assuming a current portfolio duration of ten years, and all other factors </span><span style="color:#000000;font-family:arial;font-size:9.30pt">being equal, the value of the Fund’s investments would be expected to decrease by 10%. (Duration is a measure of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the price sensitivity of a debt security or portfolio of debt securities to relative changes in interest rates.) The </span><span style="color:#000000;font-family:arial;font-size:9.30pt">magnitude of these fluctuations in the market price of bonds and other fixed-income securities is generally greater </span><span style="color:#000000;font-family:arial;font-size:9.30pt">for those securities with longer maturities. Fluctuations in the market price of the Fund’s investments will not affect </span><span style="color:#000000;font-family:arial;font-size:9.30pt">interest income derived from instruments already owned by the Fund, but will be reflected in the Fund’s net asset </span><span style="color:#000000;font-family:arial;font-size:9.30pt">value. The Fund may lose money if short-term or long-term interest rates rise sharply in a manner not anticipated by </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Fund management.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">To the extent the Fund invests in debt securities that may be prepaid at the option of the obligor (such as mortgage-backed</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> securities), the sensitivity of such securities to changes in interest rates may increase (to the detriment of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the Fund) when interest rates rise. Moreover, because rates on certain floating rate debt securities typically reset </span><span style="color:#000000;font-family:arial;font-size:9.30pt">only periodically, changes in prevailing interest rates (and particularly sudden and significant changes) can be </span><span style="color:#000000;font-family:arial;font-size:9.30pt">expected to cause some fluctuations in the net asset value of the Fund to the extent that it invests in floating rate </span><span style="color:#000000;font-family:arial;font-size:9.30pt">debt securities.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">These basic principles of bond prices also apply to U.S. Government securities. A security backed by the “full faith </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and credit” of the U.S. Government is guaranteed only as to its stated interest rate and face value at maturity, not </span><span style="color:#000000;font-family:arial;font-size:9.30pt">its current market price. Just like other fixed-income securities, government-guaranteed securities will fluctuate in </span><span style="color:#000000;font-family:arial;font-size:9.30pt">value when interest rates change.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">A general rise in interest rates has the potential to cause investors to move out of fixed-income securities on a large </span><span style="color:#000000;font-family:arial;font-size:9.30pt">scale, which may increase redemptions from funds that hold large amounts of fixed-income securities. Heavy </span><span style="color:#000000;font-family:arial;font-size:9.30pt">redemptions could cause the Fund to sell assets at inopportune times or at a loss or depressed value and could </span><span style="color:#000000;font-family:arial;font-size:9.30pt">hurt the Fund’s performance.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Extension Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — When interest rates rise, certain obligations will be paid off by the obligor more slowly than </span><span style="color:#000000;font-family:arial;font-size:9.30pt">anticipated, causing the value of these obligations to fall.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Prepayment Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — When interest rates fall, certain obligations will be paid off by the obligor more quickly than </span><span style="color:#000000;font-family:arial;font-size:9.30pt">originally anticipated, and the Fund may have to invest the proceeds in securities with lower yields.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Index-Related Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — The index provider may rely on various sources of information to assess the criteria of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">components of the Underlying Index, including information that may be based on assumptions and estimates. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Neither the Fund nor BFA can offer assurances that the index provider’s methodology or sources of information will </span><span style="color:#000000;font-family:arial;font-size:9.30pt">provide an accurate assessment of included components. Errors in index data, index computations or the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">construction of the Underlying Index in accordance with its methodology may occur, and the index provider may not </span><span style="color:#000000;font-family:arial;font-size:9.30pt">identify or correct them promptly or at all, which may have an adverse impact on the Fund and its shareholders. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Unusual market conditions or other unforeseen circumstances (such as natural disasters, political unrest or war) </span><span style="color:#000000;font-family:arial;font-size:9.30pt">may impact the index provider or a third-party data provider and could cause the index provider to postpone a </span><span style="color:#000000;font-family:arial;font-size:9.30pt">scheduled rebalance. This could cause the Underlying Index to vary from its normal or expected composition.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Operational and Technology Risks </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The Fund is directly and indirectly susceptible to operational and technology </span><span style="color:#000000;font-family:arial;font-size:9.30pt">risks, including those related to human errors, processing errors, communication errors, systems failures, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">cybersecurity incidents, and the use of artificial intelligence and machine learning (“AI”), which may result in losses </span><span style="color:#000000;font-family:arial;font-size:9.30pt">for the Fund and its shareholders or may impair the Fund’s operations. While the Fund’s service providers are </span><span style="color:#000000;font-family:arial;font-size:9.30pt">required to have appropriate operational, information security and cybersecurity risk management policies and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">procedures, their methods of risk management may differ from those of the Fund. Operational and technology risks </span><span style="color:#000000;font-family:arial;font-size:9.30pt">for the issuers in which the Fund invests could also result in material adverse consequences for such issuers and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">may cause the Fund’s investments in such issuers to lose value.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.0pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Representative Sampling Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">—</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> Representative sampling is a method of indexing that involves investing in a </span><span style="color:#000000;font-family:arial;font-size:9.30pt">representative sample of securities that collectively have a similar investment profile to the Underlying Index and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">resemble the Underlying Index in terms of risk factors and other key characteristics. The Fund may or may not hold </span><span style="color:#000000;font-family:arial;font-size:9.30pt">every security in the Underlying Index. When the Fund deviates from a full replication indexing strategy to utilize a </span><span style="color:#000000;font-family:arial;font-size:9.30pt">representative sampling strategy, the Fund is subject to an increased risk of tracking error, in that the securities </span><span style="color:#000000;font-family:arial;font-size:9.30pt">selected in the aggregate for the Fund may not have an investment profile similar to those of the Underlying Index.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Passive Investment Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">—</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> Because BFA does not select individual companies in the index that the Fund tracks, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the Fund may hold securities of companies that present risks that an investment adviser researching individual </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities might seek to avoid.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Tracking Error Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">—</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> The Fund is subject to the risk of “tracking error,” which is the divergence of the Fund’s </span><span style="color:#000000;font-family:arial;font-size:9.30pt">performance from that of the Underlying Index. Tracking error may occur due to a number of factors, including </span><span style="color:#000000;font-family:arial;font-size:9.30pt">differences between the securities and other assets held in the Fund’s portfolio and those included in the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Underlying Index; differences in the timing and methodologies used to value securities and other assets; </span><span style="color:#000000;font-family:arial;font-size:9.30pt">transaction costs and other expenses incurred by the Fund that the Underlying Index does not incur; the Fund’s </span><span style="color:#000000;font-family:arial;font-size:9.30pt">holding of uninvested cash; differences in the timing of the accrual or the valuation of dividends or interest received </span><span style="color:#000000;font-family:arial;font-size:9.30pt">by the Fund or distributions paid to Fund shareholders; tax gains or losses; differences between the amount and/or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">timing of withholding taxes on dividends reflected in the Underlying Index from the Fund’s obligation, if any, for </span><span style="color:#000000;font-family:arial;font-size:9.30pt">foreign withholding taxes; the requirements for the Fund to maintain pass-through tax treatment; portfolio </span><span style="color:#000000;font-family:arial;font-size:9.30pt">transactions carried out to minimize the distribution of capital gains to shareholders; changes to the Underlying </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Index, such as during a rebalancing or reconstitution; and impacts to the Fund of complying with certain regulatory </span><span style="color:#000000;font-family:arial;font-size:9.30pt">requirements or limits. A fund that tracks an index composed of a large number of securities or other assets may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">experience greater tracking error than a fund that tracks a more narrow index. Tracking error risk may be heightened </span><span style="color:#000000;font-family:arial;font-size:9.30pt">during times of increased market volatility or other unusual market conditions.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Asset Class Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — The securities and other assets or financial instruments in the Underlying Index or in the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Fund’s portfolio may underperform in comparison to financial markets generally, a particular financial market, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">another index, or other asset classes.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Income Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The Fund’s income may decline due to a decline in inflation, deflation or changes in inflation </span><span style="color:#000000;font-family:arial;font-size:9.30pt">expectations.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Indexed Securities Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Indexed securities provide a potential return based on a particular index of value or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">interest rates. The Fund’s return on these securities will be subject to risk with respect to the value of the particular </span><span style="color:#000000;font-family:arial;font-size:9.30pt">index. These securities are subject to leverage risk and correlation risk. Certain indexed securities have greater </span><span style="color:#000000;font-family:arial;font-size:9.30pt">sensitivity to changes in interest rates or index levels than other securities, and the Fund’s investment in such </span><span style="color:#000000;font-family:arial;font-size:9.30pt">instruments may decline significantly in value if interest rates or index levels move in a way Fund management does </span><span style="color:#000000;font-family:arial;font-size:9.30pt">not anticipate.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Management Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — As the Fund may not fully replicate the Underlying Index, it is subject to the risk that BFA’s </span><span style="color:#000000;font-family:arial;font-size:9.30pt">investment strategy may not produce the intended results.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Market Risk and Selection Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Market risk is the risk that one or more markets in which the Fund invests will </span><span style="color:#000000;font-family:arial;font-size:9.30pt">go down in value, including the possibility that the markets will go down sharply and unpredictably. The value of a </span><span style="color:#000000;font-family:arial;font-size:9.30pt">security or other asset may decline due to changes in general market conditions, economic trends or events that </span><span style="color:#000000;font-family:arial;font-size:9.30pt">are not specifically related to the issuer of the security or other asset, or factors that affect a particular issuer or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">issuers, exchange, country, group of countries, region, market, industry, group of industries, sector or asset class. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health </span><span style="color:#000000;font-family:arial;font-size:9.30pt">issues like pandemics or epidemics, recessions, or other events could have a significant impact on the Fund and its </span><span style="color:#000000;font-family:arial;font-size:9.30pt">investments. Selection risk is the risk that the securities selected by Fund management will underperform the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">markets, the relevant indices or the securities selected by other funds with similar investment objectives and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">investment strategies. This means you may lose money.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Risk of Investing in the United States </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">—</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> Certain changes in the U.S. economy, such as when the U.S. economy </span><span style="color:#000000;font-family:arial;font-size:9.30pt">weakens or when its financial markets decline, may have an adverse effect on the securities to which the Fund has </span><span style="color:#000000;font-family:arial;font-size:9.30pt">exposure.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> Performance Information <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The Fund adopted the performance of State Farm Tax Advantaged Bond Fund (the “Predecessor Fund”), a series of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">State Farm Mutual Fund Trust, as a result of a reorganization (the “Reorganization”) that was completed on </span><span style="color:#000000;font-family:arial;font-size:9.30pt">November 19, 2018 in which the Fund acquired all of the assets and assumed certain stated liabilities of the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Predecessor Fund. The returns presented for the Fund for the periods prior to November 19, 2018 reflect the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">performance of the Predecessor Fund. Performance shown below for the periods prior to November 19, 2018 is based </span><span style="color:#000000;font-family:arial;font-size:9.30pt">on the investment objective and investment strategies utilized by the Predecessor Fund, which differed from those of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the Fund. The Predecessor Fund was managed by a different investment adviser and had a different portfolio </span><span style="color:#000000;font-family:arial;font-size:9.30pt">management team from that of the Fund. The returns presented for Investor P Shares of the Fund for the periods prior </span><span style="color:#000000;font-family:arial;font-size:9.30pt">to November 19, 2018 reflect the performance of Premier Shares of the Predecessor Fund.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The information shows you how the Fund’s performance has varied year by year and provides some indication of the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">risks of investing in the Fund. The table compares the Fund’s performance to that of the Underlying Index. To the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">extent that dividends and distributions have been paid by the Fund, the performance information for the Fund in the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">chart and table assumes reinvestment of the dividends and distributions. As with all such investments, past </span><span style="color:#000000;font-family:arial;font-size:9.30pt">performance (before and after taxes) is not an indication of future results. Sales charges are not reflected in the bar </span><span style="color:#000000;font-family:arial;font-size:9.30pt">chart. If they were, returns would be less than those shown. However, the table includes all applicable fees and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">reflects the Investor P Shares sales charge for the entire period. If the investment manager to the Fund, the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">investment adviser to the Predecessor Fund and their affiliates had not waived or reimbursed certain Predecessor </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Fund or Fund expenses during these periods, the Fund’s returns would have been lower. Updated information on the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Fund’s performance, including its current net asset value, can be obtained by visiting www.blackrock.com or can be </span><span style="color:#000000;font-family:arial;font-size:9.30pt">obtained by phone at </span><span style="color:#000000;font-family:arial;font-size:9.30pt">(800) 882-0052</span><span style="color:#000000;font-family:arial;font-size:9.30pt">.</span></div> The information shows you how the Fund’s performance has varied year by year and provides some indication of the risks of investing in the Fund. As with all such investments, past performance (before and after taxes) is not an indication of future results. Sales charges are not reflected in the bar chart. If they were, returns would be less than those shown. However, the table includes all applicable fees and reflects the Investor P Shares sales charge for the entire period. www.blackrock.com (800) 882-0052 Investor P Shares ANNUAL TOTAL RETURNS iShares Municipal Bond Index Fund As of 12/31 <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">During the ten-year period shown in the bar chart, the highest return for a quarter was 7.72% (quarter ended </span><span style="color:#000000;font-family:arial;font-size:9.30pt">December 31, 2023) and the lowest return for a quarter was -5.96% (quarter ended March 31, 2022).</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span><span style="color:#000000;font-family:arial;font-size:1pt;line-height:0.93pt"> </span></div> highest return 0.0772 2023-12-31 lowest return -0.0596 2022-03-31 For the periods ended 12/31/25Average Annual Total Returns -0.0070 -0.0032 0.0155 -0.0070 -0.0033 0.0150 0.0081 0.0034 0.0176 0.0392 0.0081 0.0236 <div style="margin-top:12pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not </span><span style="color:#000000;font-family:arial;font-size:9.30pt">reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may </span></div><div style="line-height:10.695pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9.30pt">differ from those shown, and the after-tax returns shown are not relevant to investors who hold their shares through </span><span style="color:#000000;font-family:arial;font-size:9.30pt">tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and maydiffer from those shown, and the after-tax returns shown are not relevant to investors who hold their shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 33, BFA has contractually agreed to waive the management fee with respect to any portion of the Fund’s assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange-traded funds managed by BFA or its affiliates that have a contractual management fee, through June 30, 2027. In addition, BFA has contractually agreed to waive its management fees by the amount of investment advisory fees the Fund pays to BFA indirectly through its investment in money market funds managed by BFA or its affiliates, through June 30, 2027. The contractual agreements may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund. As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 33, BFA has contractually agreed to waive and/or reimburse fees or expenses in order to limit Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses) to 0.50% (for Investor A Shares) and 0.25% (for Institutional Shares) of average daily net assets through June 30, 2027. The contractual agreement may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund. As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 27, BFA has contractually agreed to waive the management fee with respect to any portion of the Fund’s assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange-traded funds managed by BFA or its affiliates that have a contractual management fee, through June 30, 2027. In addition, BFA has contractually agreed to waive its management fees by the amount of investment advisory fees the Fund pays to BFA indirectly through its investment in money market funds managed by BFA or its affiliates, through June 30, 2027. The contractual agreements may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund. The Total Annual Fund Operating Expenses and Other Expenses do not correlate to the ratios of expenses to average net assets given in the Fund’s most recent Annual Financial Statements and Additional Information, which do not include Acquired Fund Fees and Expenses. As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 27, BFA has contractually agreed to waive and/or reimburse fees or expenses in order to limit Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses) to 0.20% of average daily net assets through June 30, 2027. The contractual agreement may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund. The Total Annual Fund Operating Expenses and Other Expenses do not correlate to the ratios of expenses to average net assets given in the Fund’s most recent Annual Financial Statements and Additional Information, which do not include Acquired Fund Fees and Expenses. A contingent deferred sales charge (“CDSC”) of 0.15% is assessed on certain redemptions of Investor P Shares made within 18 months after purchase where no initial sales charge was paid at the time of purchase as part of an investment of $1,000,000 or more. As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 30, BFA has contractually agreed to waive the management fee with respect to any portion of the Fund’s assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange-traded funds managed by BFA or its affiliates that have a contractual management fee, through June 30, 2027. In addition, BFA has contractually agreed to waive its management fees by the amount of investment advisory fees the Fund pays to BFA indirectly through its investment in money market funds managed by BFA or its affiliates, through June 30, 2027. The contractual agreements may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund. The Total Annual Fund Operating Expenses and Other Expenses do not correlate to the ratios of expenses to average net assets given in the Fund’s most recent Annual Financial Statements and Additional Information, which do not include Acquired Fund Fees and Expenses. As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 30, BFA has contractually agreed to waive and/or reimburse fees or expenses in order to limit Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses) to 0.50% of average daily net assets through June 30, 2027. The contractual agreement may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund.