BlackRock, Inc. (NYSE:BLK) has expanded its suite of iShares Currency
Hedged ETFs. iShares Currency Hedged MSCI Emerging Markets ETF (HEEM)
began trading today while iShares Currency Hedged MSCI EMU ETF (HEZU)
began trading in July. The new funds join three additional iShares funds
that launched in February 2014. The current suite includes:
-
iShares Currency Hedged MSCI EAFE ETF (HEFA)
-
iShares Currency Hedged MSCI Germany ETF (HEWG)
-
iShares Currency Hedged MSCI Japan ETF (HEWJ)
-
iShares Currency Hedged MSCI EMU ETF (HEZU)
-
iShares Currency Hedged MSCI Emerging Markets ETF (HEEM)
Many investors seek growth and diversification by investing
internationally. iShares Currency Hedged ETFs are designed to reduce the
impact of currency fluctuations on returns while investing in
international equities. By investing in their related unhedged, parent
iShares ETFs (EFA, EWG, EWJ, EZU and EEM) and implementing foreign
currency forward contracts, iShares Currency Hedged ETFs provide an easy
and cost-effective way to mitigate unwanted currency risk.
Daniel Gamba, Head of iShares Americas Institutional Business at
BlackRock, commented:
“Recent events in the global economy signal an opportunity for currency
hedged iShares. Central banks are diverging in monetary policies, with
the ECB becoming more accommodative – weakening the Euro – while in the
U.S. a looming increase in rates strengthens the dollar. iShares
Currency Hedged ETFs offer an efficient and cost-effective solution in a
single transaction, so investors don’t have to manage complex currency
hedging strategies.”
iShares Currency Hedged ETFs benefit from the deep liquidity of the
underlying iShares ETFs in which they invest. Institutional
investors have been able express their market views while accessing
the liquidity of the underlying, unhedged iShares ETFs.
About BlackRock
BlackRock is a leader in investment management, risk management and
advisory services for institutional and retail clients worldwide. At
June 30, 2014, BlackRock’s AUM was $4.594 trillion. BlackRock helps
clients meet their goals and overcome challenges with a range of
products that include separate accounts, mutual funds, iShares®
(exchange-traded funds), and other pooled investment vehicles. BlackRock
also offers risk management, advisory and enterprise investment system
services to a broad base of institutional investors through BlackRock
Solutions®. Headquartered in New York City, as of June
30, 2014, the firm had approximately 11,600 employees in more than 30
countries and a major presence in key global markets, including North
and South America, Europe, Asia, Australia and the Middle East and
Africa. For additional information, please visit the Company’s website
at www.blackrock.com
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About iShares
iShares is a global product leader in exchange traded funds with over
600 funds globally across equities, fixed income and commodities, which
trade on 20 exchanges worldwide. The iShares Funds are bought and sold
like common stocks on securities exchanges. The iShares Funds are
attractive to many individual and institutional investors and financial
intermediaries because of their relative low cost, tax efficiency and
trading flexibility. Investors can purchase and sell shares through any
brokerage firm, financial advisor, or online broker, and hold the funds
in any type of brokerage account. The iShares customer base consists of
the institutional segment of pension plans and fund managers, as well as
the retail segment of financial advisors and high net worth individuals.
Carefully consider the iShares Funds’ investment objectives, risk
factors, and charges and expenses before investing. This and other
information can be found in the Funds’ prospectuses, which may be
obtained by calling 1-800-iShares (1-800-474-2737) or by visiting www.iShares.com.
Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal. International
investments may involve risk of capital loss from unfavorable
fluctuation in currency values, from differences in generally accepted
accounting principles or from economic or political instability in other
nations. Securities focusing on a single country may be subject to
higher volatility.
If and when a fund invests in forward foreign currency contracts or uses
other investments to hedge against currency risks, it will be subject to
special risks, including counterparty risk, which is the risk that the
other party in the transaction will not fulfill its contractual
obligation. Increased volatility will generally reduce the effectiveness
of a fund’s currency hedging strategy. While hedging can reduce or
eliminate losses, it can also reduce or eliminate gains. The iShares
Currency Hedge ETF’s hedging strategy will not necessarily eliminate the
funds’ exposure to the component currencies and there can be no
assurance that a fund’s hedging transactions will be effective.
Transactions in shares of the iShares Funds will result in brokerage
commissions and will generate tax consequences. iShares Funds are
obliged to distribute portfolio gains to shareholders. Shares of the
iShares Funds may be sold throughout the day on the exchange through any
brokerage account. However, shares may only be redeemed directly from a
Fund by Authorized Participants, in very large creation/redemption
units. Diversification may not protect against market risk or loss of
principal.
The iShares Funds are distributed by BlackRock Investments, LLC
(together with its affiliates, “BlackRock”). ©2014 BlackRock. All rights
reserved. iSHARES and BLACKROCK are registered trademarks
of BlackRock. All other marks are the property of their respective
owners. iS-13567-0914
Disclaimer
The Fund is not sponsored, endorsed, sold or promoted by MSCI or any
affiliate of MSCI. Neither MSCI nor any other party makes any
representation or warranty, express or implied, to the owners of the
shares of the Fund or any member of the public regarding advisability of
investing in funds generally or in the Fund particularly or the ability
of the Underlying Index to track general stock market performance. MSCI
is the licensor of certain trademarks, service marks and trade names of
MSCI and of the Underlying Index which is determined, composed and
calculated by MSCI without regard to the Company, BFA or its affiliates
or the Fund. MSCI has no obligation to take the needs of the BFA or its
affiliates or the owners of the shares of the Fund into consideration in
determining, composing or calculating the Underlying Index. MSCI is not
responsible for and has not participated in the determination of the
timing of, prices at, or quantities of the Fund to be issued or in the
determination or calculation of the equation by which the Fund is
redeemable for cash. Neither MSCI nor any other party has any obligation
or liability to owners of the shares of the Fund in connection with the
administration, marketing or trading of the Fund.
ALTHOUGH MSCI SHALL OBTAIN INFORMATION FOR INCLUSION IN OR FOR USE IN
THE CALCULATION OF THE INDEXES FROM SOURCES WHICH MSCI CONSIDERS
RELIABLE, NEITHER MSCI NOR ANY OTHER PARTY GUARANTEES THE ACCURACY
AND/OR THE COMPLETENESS OF THE INDEXES OR ANY DATA INCLUDED THEREIN.
NEITHER MSCI NOR ANY OTHER PARTY MAKES ANY WARRANTY, EXPRESS OR IMPLIED,
AS TO RESULTS TO BE OBTAINED BY LICENSEE, LICENSEE'S CUSTOMERS AND
COUNTERPARTIES, OWNERS OF THE SHARES OF THE FUND, OR ANY OTHER PERSON OR
ENTITY FROM THE USE OF THE INDEXES OR ANY DATA INCLUDED THEREIN IN
CONNECTION WITH THE RIGHTS LICENSED BY MSCI FOR USE HEREIN OR FOR ANY
OTHER USE. NEITHER MSCI NOR ANY OTHER PARTY MAKES ANY EXPRESS OR IMPLIED
WARRANTIES, AND MSCI HEREBY EXPRESSLY DISCLAIMS ALL WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE
INDEXES OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE
FOREGOING, IN NO EVENT SHALL MSCI OR ANY OTHER PARTY HAVE ANY LIABILITY
FOR DIRECT, INDIRECT, SPECIAL, PUNITIVE, CONSEQUENTIAL OR ANY OTHER
DAMAGES (INCLUDING LOST PROFITS) EVEN IF NOTIFIED OF THE POSSIBILITY OF
SUCH DAMAGES.
©2014 BlackRock. All rights reserved. iSHARES, BLACKROCK, and BLACKROCK
SOLUTIONS are registered and unregistered trademarks of BlackRock.
All other marks are those of their respective owners.
Copyright Business Wire 2014