AOA | iShares Core Aggressive Allocation ETF

AOA ISSUER

The BlackRock-advised Funds, operating under the AOA issuer, is structured as a fund of funds, primarily investing in Underlying Funds mirroring various asset classes such as U.S. and non-U.S. equity, aggregate bond markets, and U.S. Treasury bonds. Its primary benchmark, the S&P Target Risk Aggressive Index, reflects an allocation model emphasizing equity exposure for long-term capital growth, with small fixed-income allocations for portfolio efficiency. As of July 31, 2023, the Fund predominantly invested in equity and bond-based Underlying Funds alongside money market instruments, including notable holdings like iShares Core International Aggregate Bond ETF and iShares Core S&P 500 ETF. Employing an indexing strategy, the Fund aims to replicate the performance of its benchmark, focusing on representative sampling to match the investment profile while minimizing costs and risks associated with active management. The Fund's concentration policy aligns with the industry concentration of its benchmark, ensuring diversification within its investment scope.

AOA DIVIDEND

The AOA dividend policy is designed to provide investors with a regular income stream through the distribution of dividends earned from the underlying assets of the fund. As a fund of funds, AOA invests in a diverse range of assets, including equities, bonds, and money market instruments, which generate income in the form of dividends, interest payments, or other distributions. The dividend payouts are typically reflective of the performance of the underlying funds held by AOA, with dividends being distributed to shareholders periodically, usually on a quarterly basis. Investors seeking a steady income stream may find AOA's dividend policy attractive, as it offers the potential for regular income while maintaining exposure to a diversified portfolio of assets.

AOA TRACKING

The AOA tracking mechanism is integral to its investment strategy, as the fund aims to closely follow the performance of its benchmark index, the S&P Target Risk Aggressive Index. AOA achieves this tracking through a disciplined approach to portfolio management, primarily utilizing an indexing strategy that seeks to replicate the composition and performance of its benchmark. This strategy involves investing in a representative sample of securities that collectively mirrors the characteristics of the underlying index, including asset allocation, sector weightings, and risk profile. By closely monitoring and adjusting its holdings to align with changes in the benchmark, AOA endeavors to minimize tracking error and maintain consistent performance relative to its target index over time. Additionally, AOA's tracking process includes regular rebalancing and adjustments to ensure that the fund remains in line with its investment objective of providing investors with exposure to a diversified portfolio of assets while tracking the performance of the underlying index.

AOA CORRELATION

The correlation strategy employed by AOA is crucial for managing risk and optimizing portfolio diversification. AOA seeks to construct a portfolio that minimizes correlation among its underlying assets while maximizing overall returns. By investing in a variety of asset classes such as equities, bonds, and money market instruments, AOA aims to achieve a balanced correlation structure. This approach helps mitigate the impact of adverse movements in any single asset class on the overall portfolio performance. Additionally, AOA continuously assesses correlations between different assets and adjusts its holdings accordingly to maintain an optimal level of diversification. By carefully managing correlation, AOA aims to enhance portfolio stability and potentially improve risk-adjusted returns for investors over the long term.

AOA SECTOR

The sector allocation strategy of AOA plays a vital role in its overall investment approach, aiming to capture opportunities across various industries while managing sector-specific risks. AOA diversifies its portfolio by investing in sectors that exhibit promising growth potential while also considering factors such as market trends, economic conditions, and sector-specific fundamentals. By spreading investments across different sectors such as technology, financials, healthcare, and consumer discretionary, AOA seeks to mitigate the impact of sector-specific volatility on portfolio performance. Additionally, AOA regularly monitors sector trends and adjusts its allocations to capitalize on emerging opportunities or mitigate risks associated with sector rotations. Through strategic sector allocation, AOA aims to enhance portfolio resilience and potentially generate favorable long-term returns for investors.

AOA EXPOSURE

AOA's exposure strategy is carefully crafted to provide investors with diversified access to a wide range of asset classes, allowing for optimal risk management and potential for returns. AOA achieves this by investing in a variety of underlying funds that span different geographic regions, asset types, and market sectors. Through its exposure strategy, AOA aims to capture opportunities for growth while also mitigating the impact of adverse market conditions on the overall portfolio. By maintaining exposure to a diverse array of assets, including equities, bonds, and money market instruments, AOA seeks to balance risk and reward, offering investors the potential for long-term capital appreciation while managing downside volatility. Additionally, AOA regularly evaluates market dynamics and adjusts its exposure to different asset classes based on changing market conditions and investment opportunities, ensuring that the portfolio remains well-positioned to achieve its investment objectives over time.