BEMB Profile
The iShares J.P. Morgan Broad USD Emerging Markets Bond ETF is designed to provide investors with exposure to a diversified portfolio of USD-denominated fixed income securities issued by emerging market governments and corporations. The fund seeks to track the performance of the J.P. Morgan Broad USD Emerging Markets Bond Index, a benchmark that includes a wide range of debt securities from emerging markets across various sectors and issuers. This ETF aims to offer investors a comprehensive way to access the emerging markets debt space while managing currency and credit risks.
The fund commits to investing at least 80% of its assets in the component securities of the underlying index, ensuring significant alignment with the index’s performance. Additionally, it allocates at least 90% of its assets to fixed income securities that are included in the index, as identified by BlackRock Fund Advisors (BFA), the fund’s adviser. This approach helps the ETF maintain a close tracking error relative to the index, providing investors with targeted exposure to emerging markets bonds while striving to achieve returns that mirror the index’s performance.
The underlying index comprises a broad spectrum of USD-denominated bonds issued by emerging market entities, including sovereign governments, quasi-governmental organizations, and corporate issuers. The fund’s investment strategy focuses on these fixed income securities to capture the potential yield and capital appreciation available in the emerging markets debt sector. By investing in a diverse array of bonds, the ETF aims to mitigate issuer-specific risks and provide exposure to the growth potential of emerging economies.
As a non-diversified fund, the iShares J.P. Morgan Broad USD Emerging Markets Bond ETF concentrates its investments in the emerging markets bond sector, which can lead to increased exposure to sector-specific and geographic risks. However, this focus allows the fund to provide investors with a precise tool for accessing emerging market debt. The ETF is designed for those seeking to diversify their fixed income portfolios with emerging market exposure while leveraging the broad coverage and depth of the J.P. Morgan Broad USD Emerging Markets Bond Index.
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