iShares launches two new currency hedged ETFs on the ASX

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iShares has launched two new exchange traded funds (ETFs) on the Australian Securities Exchange (ASX).

The new funds are local hedged versions of iShares most popular international ETFs, iShares Core S&P 500 ETF (IVV) and iShares Global 100 ETF (IOO).  The new funds increase the number of iShares ETFs available on the ASX to 28, with assets under management of $5.73bn (as at 23 January 2015).

Jon Howie, Head of BlackRock’s iShares business in Australia said:

“ETFs providing international exposures are popular with investors due to their portfolio diversification benefits. And for investors who are concerned about currency risk, hedged ETFs are increasingly in demand.

In recent years the Australian dollar has displayed equity-like volatility against the US dollar, adding another layer of risk to our clients’ investment decisions.

In a global context of diverging monetary policies and economic conditions, these new currency hedged funds, IHVV and IHOO, give Australian investors an easy and cost effective way to control the impact of currency movements on their international exposures.”

Details of the two new hedged iShares ETFs are:

Fund Name

Ticker

Objective

Management cost % pa

iShares S&P 500 AUD Hedged ETF IHVV
  • · Aims to track the investment results of the S&P 500® Hedged Australian Dollar Index, before fees and expenses (including the cost of hedging).
  • · Investing in a capitalisation-weighted index representing stocks from a broad range of industries chosen for market size, liquidity and industry group representation.

0.13

iShares Global 100 AUD Hedged ETF IHOO
  • · Aims to track the investment results of the S&P Global 100™ Hedged Australian Dollar, before fees and expenses (including the cost of hedging).
  • · Investing in an index composed of 100 large-capitalisation global equities. These companies are expected to be highly liquid and represent some of the largest multinational businesses in the world. The Underlying Index is a subset of the S&P Global 1200™ and contains 100 common stocks, screened for sector representation, liquidity and size.

0.46

 

The iShares Australian currency hedged ETFs are constructed by combining the respective unhedged iShares ETF with applicable currency forward contracts.

“With the Australian sharemarket representing just 3 per cent of global markets, it means 97 per cent of the investment opportunity is outside Australia. iShares international ETFs help investors access these global opportunities and provide instant, diversified exposures with just one trade on the ASX,” Mr Howie said.

“The addition of these hedged ETFs, IHOO and IHVV, allows investors to access international investment opportunities, without the added concern of currency risk.”

About iShares

iShares is a global leader in exchange-traded funds (ETFs), with more than a decade of expertise and commitment to individual and institutional investors of all sizes.   With over 700 funds globally across multiple asset classes and strategies and more than $1 trillion in assets under management as of December 31 2014, iShares helps clients around the world build the core of their portfolios, meet specific investment goals and implement market views. iShares funds are powered by the expert portfolio and risk management of BlackRock, trusted to manage more money than any other investment firm.

About BlackRock

BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. At December 31 2014, BlackRock’s AUM was US$4.652 trillion. BlackRock helps clients meet their goals and overcome challenges with a range of products that include separate accounts, mutual funds, iShares® (exchange-traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions®. Headquartered in New York City, as of December 31, 2014, the firm had approximately 12,200 employees in more than 30 countries and a major presence in key global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit the Company’s website at www.blackrock.com.au

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