errors
and additional ad hoc rebalances carried out by the Index Provider or its agents
to the Underlying Index may increase the costs to and the tracking error risk of
the Fund.
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.
Information
Technology Sector Risk. Information technology
companies face intense competition, both domestically and internationally, which
may have an adverse effect on their profit margins. Like other technology
companies, information technology companies may have limited product lines,
markets, financial resources or personnel. The products of information
technology companies may face obsolescence due to rapid technological
developments, frequent new product introduction, unpredictable changes in growth
rates and competition for the services of qualified personnel. Companies in the
information technology sector are heavily dependent on patent and intellectual
property rights. The loss or impairment of these rights may adversely affect the
profitability of these companies. Companies in the information technology sector
are facing increased government and regulatory scrutiny and may be subject to
adverse government or regulatory action. Companies in the
application