EFAV | iShares MSCI EAFE Min Vol Factor ETF

EFAV ISSUER

The EFAV issuer, which is the BlackRock-advised Funds, aims to replicate the performance of the MSCI EAFE Minimum Volatility (USD) Index, designed by MSCI Inc. The index measures the performance of international equities (excluding the U.S. and Canada) with lower volatility compared to the MSCI EAFE Index. MSCI constructs the Underlying Index using a rules-based methodology, selecting securities from the Parent Index and determining their weightings to optimize for the lowest absolute volatility while adhering to various constraints. The index encompasses developed market countries across Europe, Australasia, the Middle East, and the Far East, consisting of large- and mid-capitalization companies, with a significant presence in financials, industrials, and healthcare sectors. The BlackRock-advised Funds employ an indexing approach, avoiding attempts to outperform the index, focusing instead on minimizing costs and achieving better after-tax performance through low portfolio turnover. Representative sampling indexing strategy is utilized, investing in securities resembling the Underlying Index, with at least 80% of assets dedicated to its component securities. The Fund may engage in securities lending and adheres to an industry concentration policy aligned with the Underlying Index.

EFAV DIVIDEND

The EFAV (iShares Edge MSCI Min Vol EAFE ETF) provides investors with exposure to international equities while prioritizing lower volatility through its tracking of the MSCI EAFE Minimum Volatility (USD) Index. In terms of dividends, the fund's performance is influenced by the dividend distributions of the underlying securities within the index. Since the index includes stocks from developed market countries across Europe, Australasia, the Middle East, and the Far East, the dividend income of EFAV is derived from the dividend payments made by these international companies. The dividend yield of the fund reflects the aggregate dividend yield of the underlying securities, and investors in EFAV can expect to receive periodic dividend payments based on the dividends earned by the portfolio holdings. However, the specific dividend amount and frequency may vary depending on factors such as the dividend policies of individual companies and fluctuations in the overall market conditions.

EFAV TRACKING

The EFAV (iShares Edge MSCI Min Vol EAFE ETF) is designed to track the performance of the MSCI EAFE Minimum Volatility (USD) Index, which is constructed to measure the returns of international equities (excluding the U.S. and Canada) with lower volatility compared to the broader market represented by the MSCI EAFE Index. Managed by BlackRock, the fund employs an indexing strategy, aiming to replicate the index performance rather than actively manage assets. By investing in a diversified portfolio of securities selected to closely resemble the Underlying Index, EFAV seeks to provide investors with exposure to international equities while minimizing volatility and associated risks. Through its tracking methodology and adherence to the index's composition and weightings, EFAV endeavors to deliver investment results closely aligned with the performance of the MSCI EAFE Minimum Volatility (USD) Index before fees and expenses.

EFAV CORRELATION

EFAV SECTOR

The sector allocation of the EFAV (iShares Edge MSCI Min Vol EAFE ETF) reflects the composition of the MSCI EAFE Minimum Volatility (USD) Index, which encompasses developed market countries across Europe, Australasia, the Middle East, and the Far East. As of the latest available data, a significant portion of the index and, by extension, EFAV, is represented by securities from various sectors. While specific allocations may vary over time due to market fluctuations and index rebalancing, as of the last reporting period, the index has shown notable presence in sectors such as financials, industrials, and healthcare. These sectors often form the core components of the index due to their representation within the developed market economies covered by the index. However, it's important to recognize that sector allocations within EFAV may evolve over time, reflecting changes in market conditions and the index methodology. Investors should regularly review the fund's sector allocation to ensure it aligns with their investment objectives and risk tolerance.

EFAV EXPOSURE

The EFAV (iShares Edge MSCI Min Vol EAFE ETF) provides exposure to a diversified portfolio of international equities from developed market countries across Europe, Australasia, the Middle East, and the Far East. The fund aims to replicate the performance of the MSCI EAFE Minimum Volatility (USD) Index, which is designed to measure the returns of international stocks with lower volatility compared to the broader market. As such, EFAV offers investors access to a range of companies across various sectors, including but not limited to financials, industrials, healthcare, consumer staples, and information technology. The fund's exposure to these sectors is determined by the composition of the underlying index, with weightings based on the index methodology. By tracking the index, EFAV seeks to provide investors with exposure to international equities while minimizing volatility, offering a potential risk-mitigated approach to global investing.