iShares, Inc. - iShares Euro High Yield Corporate Bond USD Hedged ETF

Frequently Asked Questions About EUHY

What does EUHY invest in?

iShares, Inc. - iShares Euro High Yield Corporate Bond USD Hedged ETF is an exchange traded fund launched by BlackRock, Inc. It is co-managed by BlackRock Fund Advisors and BlackRock International Limited. The fund invests in fixed income markets of global region. It invests directly and through derivatives in Euro-denominated high yield corporate bonds. The fund invests in securities with maturity of at least one year. It uses derivatives such as swaps, options and futures to create its portfolio. The fund seeks to track the performance of the Bloomberg Pan-European High Yield (Euro) TR Index Hedged USD, by using representative sampling technique. iShares, Inc. - iShares Euro High Yield Corporate Bond USD Hedged ETF was formed on April 3, 2012 and is domiciled in the United States.

What is the expense ratio of EUHY?

iShares, Inc. - iShares Euro High Yield Corporate Bond USD Hedged ETF (EUHY) charges an expense ratio of 0.35%. This is the annual fee deducted from fund assets to cover management and operations.

What is EUHY's distribution yield?

EUHY's trailing-twelve-month yield is 6.16%, calculated from the sum of distributions over the past year divided by the current price.

How does EUHY's covered-call strategy work?

EUHY sells call options against the stocks (or index) it holds, collecting premium income that gets passed through to shareholders as distributions. The strategy generates above-market income in flat or rising markets but caps upside — when the underlying rallies past the strike, the gains above the strike go to the option buyer, not the fund.

What is the duration of EUHY?

Effective duration measures EUHY's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. EUHY's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of EUHY?

EUHY's credit quality breakdown — the share of holdings rated AAA through CCC and below — is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.