The iShares Advantaged U.S. High Yield Bond Index Fund (CAD-Hedged) (the “Fund”) seeks to provide a return based on the price and performance, before fees and expenses, of the Barclays Capital U.S. High-Yield Very Liquid Index (“the Index”). The Fund obtains a tax-efficient exposure to the constituent securities of the index through entering into a forward agreement with a Canadian Chartered Bank.
The ETF provides suitable investors of different sizes with the opportunity to gain exposure to a well diversified U.S. high yield bond portfolio, on a Canadian dollar hedged basis.
Management Expense Ratio is the total percentage of fund assets used for administrative, management, marketing, and all other expenses.
P/E Ratio is a harmonic weighted average and is equal to a security’s market capitalization divided by its after-tax earnings over the most recent 12-month period.
The weighted average credit quality of the bonds held in the portfolio.
The weighted average of coupons on the bonds held in the portfolio.
The total return by an investor who buys the portfolio today at the market price, assuming that the all the bonds will be held until maturity, and that all coupon and principal payments will be made on schedule. Yield to maturity is actually an estimation of future return, as the rates at which coupon payments are assumed to be the current market rates.
When a bond is callable, puttable, exchangeable, or has other features, the yield to worst is the lowest yield of yield to maturity, yield to call, yield to put, and others.
The weighted average maturity of the bonds held in the portfolio.
Duration is measure of sensitivity of bond prices to changes in interest rates assuming small parallel shifts in the interest rates. For example a portfolio with duration of 2 years, when interest rates go up 1% the portfolio value should fall 2%. As maturity increases, duration increases and the bond’s price becomes more sensitive to interest rate changes.
A measure of how the duration of a bond changes as the interest rates changes do not occur evenly along the interest rate curve or non-parallel shifts in the interest rate curve. (measure of the curvature or 2nd derivative of how the price of a bond varies with interest rate).
(*) Approximate annualized distribution yield based on last distribution and most recent NAV. Information may change without notice. Actual results may vary. Distribution per unit is subject to change on the ex-distribution date.