CCRV | iShares Commodity Curve Carry Strategy ETF

CCRV ISSUER

The CCRV issuer, which is the BlackRock-advised Funds, seeks to track the performance of the ICE BofA Commodity Enhanced Carry Total Return Index, focusing on 10 commodity futures contracts representing globally significant commodities. These contracts are selected based on their degree of backwardation or contango, with an emphasis on positive carry. The Fund primarily utilizes total return swaps to achieve its investment objective, avoiding physical commodities. By maintaining exposure to futures contracts with favorable market conditions, the Fund aims to capitalize on positive roll returns. To manage risk and costs, the Fund adopts a representative sampling indexing strategy and invests in Fixed-Income Investments alongside Commodity Investments. The latter, facilitated through a Cayman Islands subsidiary, helps the Fund gain exposure to commodities while adhering to regulatory guidelines. The Fund's compliance with the Internal Revenue Code and CFTC regulations underscores its commitment to transparent and compliant investment practices. Despite the Fund's focus on commodities, its indexing approach aligns with BlackRock's philosophy of minimizing active management risks while striving for competitive performance

CCRV DIVIDEND

The CCRV dividend policy is structured to deliver returns to investors through a combination of income and capital appreciation. Leveraging the investment strategy aimed at tracking the ICE BofA Commodity Enhanced Carry Total Return Index, the dividend distribution is influenced by the performance of the underlying commodities futures contracts. Positive carry, achieved by emphasizing contracts with favorable market conditions such as backwardation, contributes to the fund's ability to generate income. Additionally, the Fund's investment in Fixed-Income Instruments alongside Commodity Investments provides stability and potential dividend yield. The dividend payout reflects the Fund's commitment to maximizing returns for investors while adhering to regulatory requirements and maintaining a diversified portfolio.

CCRV TRACKING

The CCRV tracking mechanism is designed to closely mirror the performance of the ICE BofA Commodity Enhanced Carry Total Return Index, which serves as the benchmark for the Fund's investment objectives. Through the use of total return swaps and representative sampling indexing strategy, the Fund aims to replicate the movements of the underlying commodities futures contracts within the index. By strategically selecting contracts with the highest positive carry and lowest contango, the Fund seeks to optimize its tracking performance. Regular rebalancing of the portfolio ensures alignment with the composition and weightings of the underlying index components. The Fund's tracking methodology underscores its commitment to providing investors with a transparent and efficient means of accessing commodity market returns while minimizing tracking error and maximizing investor returns.

CCRV CORRELATION

The CCRV correlation strategy is focused on maintaining a strong alignment with the ICE BofA Commodity Enhanced Carry Total Return Index, aiming to closely track its performance over time. Through rigorous analysis and selection of commodities futures contracts with high positive carry and low contango, the Fund endeavors to achieve a high correlation with the underlying index. Additionally, the Fund's use of total return swaps and representative sampling indexing strategy further contributes to enhancing correlation by closely replicating the movements of the index components. By closely monitoring and adjusting the portfolio composition as necessary, the Fund seeks to minimize deviations from the index's performance, thereby maximizing correlation. This correlation strategy reflects the Fund's commitment to providing investors with consistent and predictable returns that closely mirror the performance of the targeted commodity market benchmark.

CCRV SECTOR

The CCRV sector approach is tailored to provide exposure to a diversified range of commodities sectors represented in the ICE BofA Commodity Enhanced Carry Total Return Index. By investing in a selection of 10 commodity futures contracts covering physical agricultural, energy, precious metals, and industrial metals commodities, the Fund ensures broad sector representation. The selection process prioritizes contracts with the highest positive carry and lowest contango, emphasizing favorable market conditions for each sector. Through total return swaps and a representative sampling indexing strategy, the Fund aims to capture the performance of these sectors while managing risk and maximizing returns. This sector-focused approach underscores the Fund's commitment to offering investors exposure to various commodity sectors within a single investment vehicle, thereby providing diversification benefits and potential for long-term growth.

CCRV EXPOSURE

The CCRV exposure strategy is centered on providing investors with comprehensive exposure to the commodities market while managing risk and maximizing returns. Through its investment in total return swaps on the ICE BofA Commodity Enhanced Carry Total Return Index, the Fund gains exposure to a diversified basket of commodities futures contracts. By prioritizing contracts with favorable market conditions, such as high positive carry and low contango, the Fund seeks to optimize exposure to the underlying commodities. Additionally, the Fund utilizes a representative sampling indexing strategy to further enhance exposure, ensuring that the portfolio reflects the composition and weightings of the underlying index components. With a focus on transparency and efficiency, the Fund's exposure strategy aims to provide investors with the opportunity to participate in the potential growth of the commodities market while mitigating risk through diversification and prudent investment practices.