Infectious
Illness Risk. A widespread outbreak of an
infectious illness, such as the COVID-19 pandemic, may adversely affect the
economies of many nations and the global economy and may impact individual
issuers and capital markets in ways that cannot be foreseen.
An
infectious illness outbreak may result in travel restrictions, closed
international borders, disruption of healthcare services, prolonged quarantines,
cancellations, supply chain disruptions, lower consumer demand, temporary and
permanent closures of businesses, layoffs, defaults and other significant
economic, social and political impacts, as well as general concern and
uncertainty.
An
infectious illness outbreak may result in extreme volatility, severe losses,
credit deterioration of issuers, and disruptions in markets, which could
adversely impact the Fund and its investments, including impairing any hedging
activity.
Certain
local markets may be subject to closures. Any suspension of trading in markets
in which the Fund invests will have an impact on the Fund and its investments
and will impact the Fund’s ability to purchase or sell securities in such
markets. Market or economic disruptions could result in elevated tracking
error and increased premiums or discounts to the Fund's NAV. Additionally, an
outbreak could impair the operations of the Fund’s service providers, including
BFA, which could adversely impact the Fund.
Governmental
and quasi-governmental authorities and regulators throughout the world may
respond to an outbreak and any resulting economic disruptions with a variety of
fiscal and monetary policy changes, including direct capital infusions into
companies and other issuers, new monetary policy tools, and changes in interest
rates. A reversal of these policies, or the ineffectiveness of such policies, is
likely to increase market volatility, which could adversely affect the Fund’s
investments.
An
outbreak may exacerbate other pre-existing political, social and economic risks
in certain countries or globally, which could adversely affect the Fund and its
investments and could result in increased premiums or discounts to the Fund's
NAV.
Despite
the development of vaccines, the duration of the COVID-19 pandemic and its
effects cannot be predicted with certainty.
Issuer
Risk. The performance of the Fund depends on
the performance of individual securities to which the Fund has exposure. Any
issuer of these securities may perform poorly, causing the value of its
securities to decline. Poor performance may be caused by poor management
decisions, competitive pressures, changes in technology, expiration of patent
protection, disruptions in supply, labor problems or shortages, corporate
restructurings, fraudulent disclosures, credit deterioration of the issuer or
other factors. Issuers may, in times of distress or at their own discretion,
decide to reduce or eliminate dividends, which may also cause their stock prices
to decline. An issuer may also be subject to risks associated with the
countries, states and regions in which the issuer resides, invests, sells
products, or otherwise conducts operations.
Large
Shareholder and Large-Scale Redemption Risk.
Certain shareholders, including an Authorized Participant, a third-party
investor, the Fund’s adviser or an affiliate of the Fund’s adviser, a market
maker, or another entity, may from time to time own or manage a substantial
amount of Fund shares or may invest in the Fund and hold their investment for a
limited period of time. These shareholders may also pledge