BlackRock’s iShares begun trading of 2 new Interest Rate Hedged Bond ETFs, the iShares Interest Rate Hedged 10+ Year Credit Bond ETF (NYSE Arca: CLYH) and the iShares Interest Rate Hedged Emerging Markets Bond ETF (NYSE Arca: EMBH) on Thursday, July 23, 2015.
1.
FUND INFORMATION:
| Symbol: CLYH | Exchange: NYSE Arca |
| Name: iShares Interest Rate Hedged 10+ Year Credit Bond ETF | Net Expense Ratio: 0.30% |
FUND OBJECTIVE:
The iShares Interest Rate Hedged 10+ Year Credit Bond ETF seeks to mitigate the interest rate risk of a portfolio composed of investment-grade U.S. corporate bonds and U.S. dollar denominated bonds, including those of non-U.S. corporations and governments, with remaining maturities greater than 10 years.
The Fund seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of its net assets in investment-grade U.S. corporate bonds and U.S. dollar denominated bonds, including those of non-U.S. corporations and governments, with remaining maturities greater than 10 years, in one or more underlying funds that principally invest in investment-grade bonds and in U.S.Treasury securities (or cash equivalents). As of its inception date, the Fund intends to initially invest a substantial portion of its assets in one underlying fund, the Underlying Fund. The Fund will attempt to mitigate the interest rate risk of the underlying securities and/or the Underlying Fund (as determined by BFA) primarily through the use of short positions in both U.S. Treasury futures contracts and interest rate swaps. The bonds in which the Fund and/or the Underlying Fund invest may include investmentgrade bonds and generally have at least 10 years until maturity at the time of investment. The Fund may also invest in other interest rate futures contracts, including but not limited to, Eurodollar and Federal Funds futures. The Fund’s short positions are not intended to mitigate credit risk or other factors influencing the price of investmentgrade corporate bonds, which may have a greater impact than interest rates.
The Fund is an actively managed ETF that does not seek to replicate the performance of a specified index. The Fund may also invest in other ETFs (including other iShares funds), U.S. government securities, options and swap contracts, short-term paper, cash and cash equivalents, including shares of money market funds advised by BFA or its affiliates.
Top Holdings:
| ISHARES 10+ YEAR CREDIT BOND ETF (CLY) | 94.75% |
| CASH COLLATERAL USD (XJPM) | 5.26% |
| DERIV USD BALANCE WITH R73215 CME | 2.99% |
| BLK CSH FND TREASURY SL AGENCY (BLKFDS) | 1.87% |
| SWP: USD 0.964000 24-JUL-2017 | -0.01% |
| SWP: USD 1.809000 24-JUL-2020 | -0.10% |
| SWP: USD 2.426500 24-JUL-2025 | -0.63% |
| USD CASH | -1.89% |
| SWP: USD 2.868000 24-JUL-2045 | -2.25% |
Useful Links:
CLYH Home Page
Category: Bonds> Diversified Bonds> Global Diversified Bonds
2.
FUND INFORMATION:
| Symbol: EMBH | Exchange: NYSE Arca |
| Name: iShares Interest Rate Hedged Emerging Markets Bond ETF | Net Expense Ratio: 0.50% |
FUND OBJECTIVE:
The iShares Interest Rate Hedged Emerging Markets Bond ETF seeks to mitigate the interest rate risk of a portfolio composed of U.S. dollar-denominated, emerging market bonds.
The Fund seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of its net assets in U.S. dollar-denominated emerging market bonds, in one or more underlying funds that principally invest in emerging market bonds, and in U.S. Treasury securities (or cash equivalents). As of its inception date, the Fund intends to initially invest a substantial portion of its assets in one underlying fund, the Underlying Fund. The Fund will attempt to mitigate the interest rate risk of the underlying securities and/or the Underlying Fund (as determined by BFA) primarily through the use of short positions in both U.S. Treasury futures contracts and interest rate swaps. The bonds in which the Fund and/or the Underlying Fund invest may include both investment-grade and non-investment-grade bonds and generally have at least 2 years until maturity at the time of investment. The Fund may also invest in other interest rate futures contracts, including but not limited to, Eurodollar and Federal Funds futures. The Fund’s short positions are not intended to mitigate credit risk or other factors influencing the price of emerging market bonds, which may have a greater impact than interest rates.
The Fund is an actively managed ETF that does not seek to replicate the performance of a specified index. The Fund may also invest in other ETFs (including other iShares funds), U.S. government securities, options and swap contracts, short-term paper, cash and cash equivalents, including shares of money market funds advised by BFA or its affiliates. The Fund may have a higher portfolio turnover than funds that seek to replicate the performance of an index. The Fund may lend securities representing up to one-third of the value of the Fund’s total assets (including the value of any collateral received).
Top Holdings:
| ISHARES JPMORGAN USD EMERGING MARK (EMB) | 95.60% |
| CASH COLLATERAL USD (XJPM) | 2.85% |
| BLK CSH FND TREASURY SL AGENCY (BLKFDS) | 2.55% |
| DERIV USD BALANCE WITH R73215 CME | 1.50% |
| SWP: USD 0.964000 24-JUL-2017 | -0.01% |
| SWP: USD 1.809000 24-JUL-2020 | -0.38% |
| SWP: USD 2.868000 24-JUL-2045 | -0.42% |
| SWP: USD 2.426500 24-JUL-2025 | -0.68% |
| USD CASH | -1.01% |
Useful Links:
EMBH Home Page
Category: Bonds> Goverment Bonds> International Treasury> Emerging Markets Treasury