HEEM Profile
The iShares Currency Hedged MSCI Emerging Markets ETF is designed to provide investors with exposure to emerging markets equities while mitigating currency risk. Under normal market conditions, the fund invests at least 80% of its assets in securities that are part of its underlying index, along with other investments that have economic characteristics similar to those of the index’s component securities. This approach ensures that the fund’s portfolio closely mirrors the performance of the index, which includes a diverse range of companies from emerging market economies.
The underlying index, developed by MSCI, serves as a benchmark for equity performance in global emerging markets. It tracks the performance of large and mid-cap companies across various emerging market countries. To manage currency risk, the fund employs a currency hedging strategy that mitigates the impact of fluctuations between local emerging market currencies and the U.S. dollar. This hedging process is executed on a monthly basis, providing a consistent approach to neutralizing currency exposure and focusing on the equity performance of the underlying index.
By incorporating a currency hedging mechanism, the fund aims to reduce the potential volatility that can arise from changes in exchange rates. This allows investors to gain exposure to emerging markets' growth potential without being directly impacted by currency fluctuations. The fund’s strategy is particularly relevant for investors looking to diversify their portfolios with international equities while managing the risks associated with currency movements.
Overall, the iShares Currency Hedged MSCI Emerging Markets ETF offers a targeted investment opportunity in emerging markets with a risk management strategy that addresses currency volatility. This makes it a suitable choice for investors seeking to capitalize on growth opportunities in emerging economies while maintaining a focus on minimizing currency-related risks. The fund is part of iShares' broader suite of investment solutions designed to cater to various risk profiles and investment objectives.
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