HSCZ Profile
The iShares Currency Hedged MSCI EAFE Small-Cap ETF is designed to provide investors with exposure to small-cap equity securities from developed markets outside the U.S. and Canada, while mitigating the impact of currency fluctuations. The fund aims to replicate the performance of the MSCI EAFE Small Cap Index, which includes stocks from Europe, Australasia, and the Far East. By hedging currency risk, the fund seeks to reduce the volatility that can arise from exchange rate movements, thus allowing investors to focus on the performance of the underlying equities.
Under normal market conditions, the iShares Currency Hedged MSCI EAFE Small-Cap ETF will invest at least 80% of its total assets in securities that are components of the index. This includes direct investments in the index's constituent stocks as well as indirect investments through underlying funds. The fund may also invest in instruments with economic characteristics similar to those of the index's components, ensuring that it closely tracks the index's performance while implementing currency hedging strategies.
The MSCI EAFE Small Cap Index represents a diverse array of small-cap companies from developed markets outside North America. These markets include major economies such as the United Kingdom, Germany, Japan, Australia, and others. By focusing on small-cap stocks, the fund aims to capture the growth potential of emerging companies within these regions, which may offer different growth opportunities compared to large-cap counterparts.
Managed by iShares, a leading provider of exchange-traded funds (ETFs), the fund leverages sophisticated currency hedging techniques to manage foreign exchange risk. This approach is designed to minimize the effects of currency fluctuations on the fund's performance, providing investors with a more stable return profile. iShares' expertise in ETF management and currency risk mitigation enhances the fund's ability to deliver performance aligned with its investment objectives while maintaining a focus on small-cap equities in developed international markets.
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