iShares U.S. Treasury Bond (AUD Hedged) ETF (IUSG)

Overview

The described company operates as an investment fund that primarily focuses on replicating the performance of its underlying index. It commits at least 80% of its assets to securities that are components of the index it follows, demonstrating a concentrated investment approach. The remaining assets, up to 20%, can be allocated towards derivatives (such as futures, options, and swap contracts), as well as cash and cash equivalents, providing the fund with flexibility to hedge against market volatility or pursue additional investment strategies as opportunities arise. Notably, the fund is non-diversified, which means it may invest more heavily in fewer sectors or securities, potentially increasing its risk and reward profile compared to diversified funds.

Products and Services

The fund offers a distinct set of investment products and services designed to meet the needs of its investors while adhering to its specified investment strategy. These include:

• Component Securities Investments - The bulk of the fund's investments are in the component securities of its underlying index. This approach aims to mirror the performance of the index, making it suitable for investors seeking exposure to the specific sectors or companies the index represents.
• Futures, Options, and Swap Contracts - Up to 20% of the fund’s assets can be invested in derivatives such as futures, options, and swap contracts. These financial instruments can be used for hedging purposes to manage risk or to take speculative positions on the direction of the market or individual securities, offering potential for additional returns.
• Cash and Cash Equivalents - The fund has the flexibility to hold a portion of its assets in cash or cash equivalents. This not only provides liquidity, ensuring that the fund can meet redemption requests from investors, but also offers a buffer against market volatility, protecting the fund’s value during downturns.