iShares Broad Global Govt Bond UCITS ETF USD HedgedIndex, costs, backtest, listings and taxation

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The Fund aims to achieve a return on your investment, taking into account both capital and income returns, which reflects the return of the Bloomberg Global Aggregate Treasuries Index (“Index”). The Share Class, via the Fund, is passively managed and aims to invest so far as possible and practicable in fixed income securities issued or guaranteed by governments.

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The Index aims to measure the performance of fixed rate, local currency, investment grade government bonds representing debt issued or guaranteed by developed and emerging market countries within the treasury sector of the Bloomberg Global Aggregate Index (“Parent Index”). Only bonds that meet the index provider's criteria for time to maturity and amount outstanding are included in the Benchmark Index. Such bonds will, at the time of inclusion in the Benchmark Index, be rated at least investment grade by rating agencies such as Moody's, Standard and Poor's and Fitch or an equivalent rating from another agency. The Fund may trade China bonds via Bond Connect. The index is market capitalisation weighted and rebalances on a monthly basis. Market capitalisation is the market value of the outstanding bond issuance. The Fund uses optimising techniques to achieve a similar return to its index. These techniques may include the strategic selection of certain securities that make up the Index or other securities which provide similar performance to certain constituent securities. These may also include the use of financial derivative instruments (FDIs) (i.e. investments the prices of which are based on one or more underlying assets). FDI may be used for direct investment purposes The Fund may also engage in short-term secured lending of its investments to certain eligible third parties to generate additional income. The relationship between the return on your investment, how it is impacted and the period for which you hold your investment is considered below (see “How long should I hold it and can I take my money out early?”).

The depositary of the Fund is State Street Custodial Services (Ireland) Limited.

The price of fixed income securities may be affected by changing interest rates which in turn may affect the value of your investment. Fixed income securities prices move inversely to interest rates. Therefore, the market value of fixed income securities may decrease as interest rates increase. The credit rating of an issuing entity will generally affect the yield that can be earned on fixed income securities; the better the credit rating the smaller the yield. The shares are listed and traded on various stock exchanges. In normal circumstances, only authorised participants may buy and sell shares directly with the Fund. Investors who are not authorised participants (e.g. select financial institutions) can generally only buy or sell the shares on the secondary market (e.g. via a broker on a stock exchange) at the then prevailing market price. The value of the shares are related to the value of the underlying assets of the Fund, less costs (see “What are the costs?” below). The prevailing market price at which the shares trade on the secondary market may deviate from the value of the Shares. Indicative net asset value is published on relevant stock exchanges websites. Further information about the Fund can be obtained from the latest annual report and half-yearly reports of the iShares III plc. These documents are available free of charge in English and certain other languages. These can be found, along with other (practical) information, including prices of units, on the iShares website at: www.ishares.com or by calling +49 89427295800 or from your broker or financial adviser.

Your shares will be accumulating shares (i.e. income will be included in their value). Your shares will be denominated in US Dollar, the Fund's base currency. Your shares will be hedged with the aim of reducing the effect of exchange rate fluctuations between the denominated currency of the shares and the Fund’s underlying portfolio currencies or the Fund’s base currency. FDIs, including FX forward contracts, will be used for currency hedging purposes. The hedging strategy may not completely eliminate currency risk and, therefore, may affect the performance of your shares. Please see the prospectus for further details. The shares are listed and traded on various stock exchanges. In normal circumstances, only authorised participants may buy and sell shares directly with the Fund. Investors who are not authorised participants (e.g. select financial institutions) can generally only buy or sell the shares on the secondary market (e.g. via a broker on a stock exchange) at the then prevailing market price. The value of the shares are related to the value of the underlying assets of the Fund, less costs (see “What are the costs?” below). The prevailing market price at which the shares trade on the secondary market may deviate from the value of the Shares. Indicative net asset value is published on relevant stock exchanges websites.

Intended retail investor:The Fund is intended for retail investors with the ability to bear losses up to the amount invested in the Fund (see “How long should I hold it and can I take my money out early?”).

Insurance benefits:The Fund does not offer any insurance benefits.

this share class is hedged to USD; the index the issuer places next to it in its documents is the unhedged, foreign-currency version. Subtracting one from the other does not measure replication quality: it measures the exchange rate. In a year when the currency moves 5%, “the TD” would come out near 5 points — a plausible-looking number, with decimals, and wrong.

Other sites publish that number. We would rather show one figure less than one figure wrong: the TD will return here the day we have the USD-hedged index series, which the issuer does not publish today.

Still want to know how well this fund tracks its index? Look at the unhedged sister class, IGBD, where fund and index share the same currency: its TD is the right measure of the management, which is the same. Go to the IGBD page →

What tracking difference is and how we compute it →

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