(as revised January 5, 2022) | |
2021 Prospectus |
• | iShares
Currency Hedged MSCI Emerging Markets ETF | HEEM | CBOE
BZX |
Types of Accounts | Number | Total Assets | ||
Registered
Investment Companies |
N/A | N/A | ||
Other
Pooled Investment Vehicles |
N/A | N/A | ||
Other
Accounts |
N/A | N/A |
Types of Accounts | Number of Other Accounts with Performance Fees Managed by Portfolio Manager |
Aggregate of Total Assets | ||
Registered
Investment Companies |
N/A | N/A | ||
Other
Pooled Investment Vehicles |
N/A | N/A | ||
Other
Accounts |
N/A | N/A | ||
|
S-1 |
|
1 |
|
2 |
|
27 |
|
32 |
|
32 |
|
33 |
|
36 |
|
46 |
|
47 |
|
48 |
|
48 |
Ticker: HEEM | Stock Exchange: Cboe BZX |
(ongoing expenses that you pay each year as a percentage of the value of your investments) | ||||||||||||
Management Fees |
Distribution
and Service (12b-1) Fees |
Other Expenses 1 |
Acquired
Fund Fees and Expenses |
Total
Annual Fund Operating Expenses |
Fee Waiver | Total
Annual Fund Operating Expenses After Fee Waiver | ||||||
( |
1 |
1 Year | 3 Years | 5 Years | 10 Years | |||
$ |
$ |
$ |
$ |
1 |
One Year | Five Years | Since
Fund Inception | |||
(Inception
Date: |
|||||
Return Before Taxes | |||||
Return After Taxes on Distributions2 | |||||
Return After Taxes on Distributions and Sale of Fund Shares2 | |||||
MSCI Emerging Markets 100% Hedged to USD Index (Index returns do not reflect deductions for fees, expenses or taxes) |
2 |
■ | General Impact. This outbreak has resulted in travel restrictions, closed international borders, enhanced health screenings at ports of entry and elsewhere, disruption of, and delays in, healthcare service preparation and delivery, prolonged quarantines, cancellations, supply chain disruptions, lower consumer demand, temporary and permanent closures of stores, restaurants and other commercial establishments, layoffs, defaults and other significant economic impacts, as well as general concern and uncertainty. |
■ | Market Volatility. The outbreak has also resulted in extreme volatility, severe losses, and disruptions in markets which can adversely impact the Fund and its investments, including impairing hedging activity to the extent a Fund engages in such activity, as expected correlations between related markets or instruments may no longer apply. In addition, to the extent the Fund invests in short-term instruments that have negative yields, the Fund’s value may be impaired as a result. Certain issuers of equity securities have cancelled or announced the suspension of dividends. The outbreak has, and may continue to, negatively affect the credit ratings of some fixed-income securities and their issuers. |
■ | Market Closures. Certain local markets have been or may be subject to closures, and there can be no assurance that trading will continue in any local markets in which the Fund may invest, when any resumption of trading will occur or, once such markets resume trading, whether they will face further 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. | |
■ | Operational Risk. The outbreak could also impair the information technology and other operational systems upon which the Fund’s service providers, including BFA, rely, and could otherwise disrupt the ability of employees of the Fund's service providers to perform critical tasks relating to the Fund, for example, due to the service providers’ employees performing tasks in alternate locations than under normal operating conditions or the illness of certain employees of the Fund's service providers. |
■ | Governmental Interventions. Governmental and quasi-governmental authorities and regulators throughout the world have responded to the outbreak and the 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 lower interest rates. An unexpected or sudden reversal of these policies, or the ineffectiveness of such policies, is likely to increase market volatility, which could adversely affect the Fund’s investments. |
■ | Pre-Existing Conditions. Public health crises caused by the 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. |
■ | Government intervention in issuers' operations or structure; |
■ | A lack of market liquidity and market efficiency; |
■ | Greater securities price volatility; |
■ | Exchange rate fluctuations and exchange controls; |
■ | Less availability of public information about issuers; |
■ | Limitations on foreign ownership of securities; |
■ | Imposition of withholding or other taxes; |
■ | Imposition of restrictions on the expatriation of the funds or other assets of the Fund; |
■ | Higher transaction and custody costs and delays in settlement procedures; |
■ | Difficulties in enforcing contractual obligations; |
■ | Lower levels of regulation of the securities markets; |
■ | Weaker accounting, disclosure and reporting requirements and the risk of being delisted from U.S. exchanges; and |
■ | Legal principles relating to corporate governance, directors’ fiduciary duties and |
■ | The risk of delays in settling portfolio transactions and the risk of loss arising out of the system of share registration and custody used in Russia; |
■ | Risks in connection with the maintenance of the Fund’s portfolio securities and cash with foreign sub-custodians and securities depositories, including the risk that appropriate sub-custody arrangements will not be available to the Fund; |
■ | The risk that the Fund’s ownership rights in portfolio securities could be lost through fraud or negligence because ownership in shares of Russian companies is recorded by the companies themselves and by registrars, rather than by a central registration system; |
■ | The risk that the Fund may not be able to pursue claims on behalf of its shareholders because of the system of share registration and custody, and because Russian banking institutions and registrars are not guaranteed by the Russian government; and |
■ | The risk that various responses by other nation-states to alleged Russian cyber activity will impact Russia’s economy and Russian issuers of securities in which the Fund invests. |
iShares Currency Hedged MSCI Emerging Markets ETF | |||||||||
Year
Ended 08/31/21 |
Year
Ended 08/31/20 |
Year
Ended 08/31/19 |
Year
Ended 08/31/18 |
Year
Ended 08/31/17 | |||||
Net asset value, beginning of year | $27.41 | $24.38 | $25.70 | $25.57 | $21.72 | ||||
Net investment income(a) | 0.44 | 0.71 | 0.55 | 0.60 | 0.36 | ||||
Net realized and unrealized gain (loss)(b) | 3.92 | 3.03 | (1.27) | 0.12 | 3.83 | ||||
Net increase (decrease) from investment operations | 4.36 | 3.74 | (0.72) | 0.72 | 4.19 | ||||
Distributions(c) | |||||||||
From net investment income | (0.46) | (0.71) | (0.60) | (0.59) | (0.34) | ||||
Total distributions | (0.46) | (0.71) | (0.60) | (0.59) | (0.34) | ||||
Net asset value, end of year | $31.31 | $27.41 | $24.38 | $25.70 | $25.57 | ||||
Total Return(d) | |||||||||
Based on net asset value | 15.96% | 15.49% | (2.72)% | 2.77% | 19.55% | ||||
Ratios to Average Net Assets | |||||||||
Total expenses(e) | 0.78% | 0.78% | 0.78% | 0.78% | 0.78% | ||||
Total expenses after fees waived(e) | 0.00%(f) | 0.00%(f) | 0.00% | 0.00% | 0.00% | ||||
Net investment income | 1.41% | 2.84% | 2.22% | 2.25% | 1.56% | ||||
Supplemental Data | |||||||||
Net assets, end of year (000) | $203,180 | $183,626 | $180,376 | $344,328 | $393,757 | ||||
Portfolio turnover rate(g)(h) | 6% | 9% | 7% | 7% | 4% | ||||
(a) Based on average shares outstanding. | |||||||||
(b) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. | |||||||||
(c) Distributions for annual periods determined in accordance with U.S. federal income tax regulations. | |||||||||
(d) Where applicable, assumes the reinvestment of distributions. | |||||||||
(e) The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested (“acquired fund fees and expenses”). This ratio does not include these acquired fund fees and expenses. | |||||||||
(f) Rounds to less than 0.01%. | |||||||||
(g) Portfolio turnover rate excludes in-kind transactions. | |||||||||
(h) Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested. See the underlying fund's financial highlights for its respective portfolio turnover rates. |
Call: | 1-800-iShares
or 1-800-474-2737 (toll free) Monday through Friday, 8:30 a.m. to 6:30 p.m. (Eastern time) |
Email: | [email protected] |
Write: | c/o
BlackRock Investments, LLC 1 University Square Drive, Princeton, NJ 08540 |