| Investment Objective: |
The iShares Euro Investment Grade Corporate Bond USD Hedged ETF seeks to track the investment results of an index composed of Euro-denominated investment-grade bonds that mitigates exposure to fluctuations between the value of the Euro and the U.S. dollar. The Fund seeks to track the investment results of the Bloomberg Euro-Aggregate: Corporates Total Return Index Hedged USD (the "Underlying Index"), which measures the performance of fixed- rate, investment-grade Euro-denominated securities issued by corporations. The Underlying Index includes bonds from both developed and emerging market issuers. The Underlying Index is market capitalization-weighted. Components of the Underlying Index include fixed-income securities and foreign currency forward contracts (both deliverable and non-deliverable) designed to hedge the Euro's fluctuations against the U.S. dollar. The notional exposure to foreign currency forward contracts (both deliverable and non-deliverable) generally will be a short position that hedges the currency risk of the fixed- income portfolio. The Underlying Index sells forward the total value of the Euro at a one-month forward rate to hedge against fluctuations in the relative value of the Euro in relation to the U.S. dollar. |
