HEFA Profile
The iShares Currency Hedged MSCI EAFE ETF is an exchange-traded fund designed to provide investors with exposure to large- and mid-cap equity securities across Europe, Australasia, and the Far East, while managing currency risk. Under normal market conditions, the fund invests at least 80% of its assets in securities that are constituents of the MSCI EAFE Index or in investments with similar economic characteristics. This approach includes direct investments as well as indirect investments through underlying funds.
The MSCI EAFE Index, which the fund seeks to track, comprises a diversified range of large- and mid-cap equities from developed markets outside of North America. This index represents a broad spectrum of industries and sectors across three major regions: Europe, Australasia, and the Far East. By tracking this index, the fund aims to offer investors exposure to high-quality companies that are significant players in their respective regions.
To address the impact of currency fluctuations, the fund employs a currency-hedging strategy. This strategy is designed to neutralize the effects of changes in exchange rates between the U.S. dollar and the component currencies of the index. The fund achieves this by using forward currency contracts and other financial instruments to mitigate currency risk, thereby allowing investors to focus on the equity exposure without the added volatility from currency movements.
The iShares Currency Hedged MSCI EAFE ETF's investment strategy is geared towards providing a comprehensive international equity exposure while managing the associated currency risks. By investing in a wide range of large- and mid-cap companies across developed markets in Europe, Australasia, and the Far East, and employing a currency-hedging approach, the fund offers a balanced and strategic option for investors seeking global equity diversification with reduced currency exposure.
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