HAWX Profile
The iShares Currency Hedged MSCI ACWI ex U.S. ETF is designed to provide investors with exposure to a broad array of international equities while mitigating the impact of currency fluctuations. This exchange-traded fund (ETF) typically invests at least 80% of its assets in securities that are components of the MSCI ACWI ex U.S. Index, which includes stocks from developed and emerging markets outside of the United States and Canada. The fund's approach is to capture the performance of global equity markets excluding the U.S., while employing currency hedging strategies to reduce the risk associated with fluctuations in foreign exchange rates.
The MSCI ACWI ex U.S. Index represents a diverse mix of companies across various sectors and regions, encompassing large-, mid-, and small-cap stocks. By tracking this index, the fund aims to deliver a comprehensive global equity exposure, providing investors with a diversified investment opportunity across multiple international markets. The index’s constituents are selected based on their market capitalization and liquidity, ensuring that the fund reflects the broader trends and dynamics of the global equity landscape.
In addition to its equity investments, the fund uses currency hedging techniques to offset potential adverse movements in exchange rates. This is achieved through various financial instruments, including forward currency contracts. By implementing these hedging strategies, the fund seeks to minimize the impact of currency volatility on its returns, allowing investors to focus on the performance of international equities without the added uncertainty of currency risk.
The iShares Currency Hedged MSCI ACWI ex U.S. ETF is managed by BlackRock, a leading global asset manager with extensive experience in international and currency-hedged investment strategies. The fund's dual focus on global equity exposure and currency risk management is designed to provide investors with a streamlined, efficient investment solution for accessing international markets while maintaining a degree of protection against currency-related fluctuations. This makes it an appealing option for those seeking diversified global equity exposure with reduced currency risk.
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