iShares JP Morgan Advanced $ 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 assets, which reflects the return of the J.P. Morgan Screened, Tilted and Re-weighted EMBI Global Diversified 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 the fixed income (“FI”) securities (such as bonds) that make up the Index. The Index measures the performance of a sub-set of US Dollar denominated, fixed and/or floating rate emerging market bonds, issued by sovereign and quasi sovereign entities, which the index provider has determined are part of the J.P. Morgan EMBI Global Diversified Index (the “Parent Index”) and that meet the index provider’s socially responsible investing (“SRI”) and environmental, social and governance (“ESG”) requirements, based on a series of exclusionary screens and ratings based criteria applied as part of the Index's methodology. The Index may consist of both investment grade and non-investment grade bonds, including bonds that are in default. To be eligible for inclusion in the Index, the bonds must comply with the minimum amount outstanding and maturity requirements of the Index. The Index is comprised only of those countries that meet the index provider’s criteria for an emerging market and each country is capped at 10%. The Fund’s investments will, at the time of purchase, comply with the SRI and/or ESG rating requirements of the Index. Where securities no longer meet such requirements, the Fund may continue to hold them until they cease to form part of the Index and it is practicable to sell them. Further details regarding the Index (including its constituents) are available on the index provider’s website at http:// www.jpmorgan.com/pages/jpmorgan/investbk/solutions/research/indices/composition. 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. 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. The price of FI securities may be affected by changing interest rates which in turn may affect the value of your investment. FI securities prices move inversely to interest rates. Therefore, the market value of FI securities may decrease as interest rates increase. The credit rating of an issuing entity will generally affect the yield that can be earned on FI 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?”).

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The depositary of the Fund is The Bank of New York Mellon SA/NV, Dublin Branch. Further information about the Fund can be obtained from the latest annual report and half-yearly reports of the iShares II 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). 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. 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.

SLMG 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, EMSA, where fund and index share the same currency: its TD is the right measure of the management, which is the same. Go to the EMSA page →

What tracking difference is and how we compute it →

Countries

• 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