iShares $ EM Bond UCITS ETF EUR HedgedIndex, costs, backtest, listings and taxation

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The Share Class is a share class of a Fund which aims to achieve a return on your investment, through a combination of capital growth and income on the Fund’s’ investments, which reflects the return of the Bloomberg EM USD Sovereign and Quasi Sovereign Country Capped Index, the Fund’s benchmark 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 (such as bonds) that make up the Index. The Index is an emerging markets debt benchmark that includes fixed and floating-rate US dollar-denominated debt issued from sovereign and quasi-sovereign emerging markets issuers. Quasi-sovereign issuers are defined as any non-sovereign government-related issuer, inclusive of both government-related agency and local authority debt. Only FI securities which (i) have maturities greater than one year; (ii) have a minimum issue size of US$500 million, and (iii) which are issued by sovereign, agency (government owned, government guaranteed and government sponsored entities) and local authority issuers are included in the Index. The Index applies a country cap for any country weights exceeding 10% of the market value of the Bloomberg Emerging Market USD Aggregate Index (the Parent Index), with the excess market value over the 10% cap being redistributed pro-rata to all other countries in the index in proportion to their respective market value weights. The Index rebalances on a monthly basis. Between index rebalances, the Index constituent weightings will fluctuate due to price performance. The Fund uses optimising techniques to achieve a similar return to its Index. These may include the strategic selection of certain securities that make up the Index or other FI securities which provide similar performance to certain constituent securities. The investment manager may use financial derivative instruments (“FDIs”) (i.e. investments the prices of which are based on one or more underlying assets) to help achieve the Fund’s investment objective. FDIs 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 to offset the costs of the Fund. Recommendation: This Fund is suitable for medium to long term investment, though the Fund may also be suitable for shorter term exposure to the Index.

Keep reading the KID section ▾

Your shares will be accumulating shares (i.e. income will be included in their value). The Fund’s base currency is US Dollar. Shares for this Share Class are denominated in Euro. The performance of your shares may be affected by this currency difference. 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 on one or more stock exchanges and may be traded in currencies other than their base currency. The performance of your shares may be affected by this currency difference. In normal circumstances, only authorised participants (e.g. select financial institutions) may deal in shares (or interests in shares) directly with the Fund. Other investors can deal in shares (or interests in shares) daily through an intermediary on stock exchange (s) on which the shares are traded. Indicative net asset value is published on relevant stock exchanges websites.

CEMX is hedged to EUR; 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 EUR-hedged index series, which the issuer does not publish today.

What tracking difference is and how we compute it →

Countries

ETFs declaring the same index