BKF | iShares MSCI BIC ETF

BKF ISSUER

The BlackRock-advised Funds (BKF issuer) seeks to track the investment performance of the MSCI BIC Index, which encompasses the equity markets of Brazil, India, and China (BIC). This index, comprising approximately 917 constituents as of August 31, 2023, predominantly features stocks traded on major exchanges like B3, National Stock Exchange of India, Shanghai Stock Exchange, Shenzhen Stock Exchange, and the Stock Exchange of Hong Kong. The index emphasizes large- and mid-cap companies, with a notable representation from the consumer discretionary and financial sectors. BKF adopts an indexing approach, forgoing attempts to outperform the underlying index, focusing instead on replicating its performance while minimizing costs and risks associated with active management. Through representative sampling, BKF invests in a subset of securities mirroring the index's characteristics. The fund aims to invest at least 80% of its assets in index components or similar instruments, with the flexibility to allocate up to 20% to derivatives, cash, and securities outside the index to aid tracking. Additionally, the fund may engage in securities lending and adheres to industry concentration and diversification policies aligned with the composition of the underlying index

BKF DIVIDEND

The BlackRock-advised Funds (BKF issuer) distributes dividends to its investors in accordance with its investment strategy and the performance of the underlying assets. As an exchange-traded fund (ETF) seeking to track the MSCI BIC Index, BKF's dividend payments are influenced by the dividends received from the constituent stocks within the index. Companies included in the index that pay dividends contribute to BKF's dividend yield. BKF aims to pass on these dividends to its shareholders, providing them with a source of income in addition to potential capital appreciation. The frequency and amount of dividends distributed by BKF may vary depending on market conditions, the dividend policies of the underlying companies, and the fund's expenses. Investors can typically expect BKF to distribute dividends on a periodic basis, offering them the opportunity to participate in the income generated by the BIC equity markets.

BKF TRACKING

The tracking performance of the BlackRock-advised Funds (BKF issuer) is closely tied to its objective of mirroring the investment results of the MSCI BIC Index. BKF employs a rigorous tracking methodology aimed at replicating the index's performance as accurately as possible. Through its indexing approach and representative sampling strategy, BKF invests in a diversified portfolio of securities that collectively mirrors the characteristics of the underlying index. The fund allocates a substantial portion of its assets to holdings that are components of the MSCI BIC Index, while also utilizing derivatives and other instruments to help achieve precise tracking. Regular monitoring and adjustments are made to ensure that BKF's performance closely aligns with that of the underlying index, minimizing tracking error and providing investors with a reliable tool to gain exposure to the Brazilian, Indian, and Chinese equity markets.

BKF CORRELATION

The correlation of the BlackRock-advised Funds (BKF issuer) with its underlying index, the MSCI BIC Index, is a key metric that investors consider when evaluating the fund's performance. BKF aims to maintain a high correlation with the index, meaning that its returns typically move in tandem with those of the index. A high correlation suggests that BKF effectively tracks the performance of the underlying index, providing investors with exposure to the Brazilian, Indian, and Chinese equity markets. However, fluctuations in correlation may occur due to various factors such as market volatility, changes in the composition of the index, or differences in the fund's implementation strategy. Nonetheless, BKF's objective remains to minimize tracking error and maintain a strong correlation with the MSCI BIC Index, offering investors a reliable vehicle to participate in the growth potential of these emerging market economies

BKF SECTOR

The sector allocation of the BlackRock-advised Funds (BKF issuer) is influenced by the composition of its underlying index, the MSCI BIC Index, which encompasses the equity markets of Brazil, India, and China. As of its latest disclosure, the index consists primarily of companies from sectors such as consumer discretionary and financials, reflecting the economic landscape of these emerging market economies. BKF's sector allocation aims to closely mirror that of the underlying index, providing investors with exposure to the key sectors driving growth and development in Brazil, India, and China. However, fluctuations in sector allocation may occur over time due to changes in market conditions, company performance, or adjustments made to the index methodology. Nonetheless, BKF's sector allocation strategy remains aligned with its objective of tracking the performance of the MSCI BIC Index, allowing investors to access a diversified portfolio of companies across various sectors in these dynamic emerging markets.

BKF EXPOSURE

The exposure provided by the BlackRock-advised Funds (BKF issuer) offers investors an opportunity to participate in the economic growth and market dynamics of Brazil, India, and China (BIC). As an exchange-traded fund (ETF) designed to track the performance of the MSCI BIC Index, BKF provides exposure to a diverse range of companies listed on major exchanges in these emerging market economies. Investors gain exposure to sectors such as consumer discretionary and financials, which play pivotal roles in driving the economic development of BIC countries. BKF's exposure is structured to closely replicate the composition and performance of the underlying index, providing investors with a convenient and efficient way to access the potential growth opportunities offered by these dynamic markets. By investing in BKF, investors can diversify their portfolios and capitalize on the long-term growth prospects of Brazil, India, and China.