iShares Fallen Angels High Yield Corp Bond UCITS ETF EUR HedgedIndex, costs, backtest, listings and taxation

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The Fund aims to achieve a return on your investment through a combination of capital growth and income on the Fund’sassets, which reflects the return of the Bloomberg Global Corporate ex EM Fallen Angels 3% Issuer Capped Index (Index). The Fund is passively managed, and aims to invest in the fixed income (FI) securities (such as bonds) that make up the Index and comply with its credit rating requirements. If the credit rating of a FI security is downgraded or upgraded such that it is no longer eligible for inclusion in the Index, the Fund may continue to hold it until it ceases to form part of the Index and it is practicable to sell it. The Index measures the performance of fixed and floating rate, sub-investment grade bonds, issued by corporate issuers in developed markets and denominated in certain currencies. The bonds will, at the time of inclusion in the Index, have a rating of between BB+ and B(inclusive), or equivalent in accordance with the index provider's methodology for assigning ratings. The bonds included in the Index will be bonds that at one point in their trading history were investment grade and have since been downgraded to sub-investment grade according to the methodology used by the Index provider. The bonds must have a minimum time to maturity of 1 year. The Index is marketvalue weighted with an issuer cap of 3%. 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 (with matching risk profile) 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). 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 off-set the costs of the Fund.

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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 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. Further information about the Fund can be obtained from the latest annual report and half-yearly reports of the iShares IV 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 distributing shares (i.e. income will be paid on the shares quarterly). 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 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.

WNGE 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.

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

What tracking difference is and how we compute it →

Countries

Dividends

• XTBzero (up to €100,000 monthly volume, unreachable for a retail plan); fractions available in plans

• Directazero within the savings plan (buys)
• Directazero on single buys from 2,500 €, agreement until 31 December 2026
• Moneyfarmzero within the savings plan (buys), agreement until 31 March 2027
• Moneyfarmzero on single buys from 1,000 €, agreement until 31 March 2027
• XTBzero (up to €100,000 monthly volume, unreachable for a retail plan); fractions available in plans