NEW YORK--(BUSINESS WIRE)--
As of January 2, 2015, iShares Interest Rate Hedged High Yield Bond ETF
(HYGH), an active ETF and iShares Asia/Pacific Dividend ETF (DVYA) will
begin participating in the NYSE Arca ETP Program on its listing market,
NYSE Arca.
As described in NYSE Arca Equities Rule 8.800, the NYSE Arca ETP
Incentive Program is designed to incentivize Market Makers to undertake
Lead Market Maker (“LMM”) assignment in exchange-traded products
(“ETPs”) listed on NYSE Arca. As a participant in the NYSE Arca ETP
Incentive Program, BlackRock will continue to pay the applicable NYSE
Arca Listing and Annual fees in addition to an Option Incentive Fee,
which would range from $10,000 to $40,000 per year and will in turn be
paid by NYSE Arca to the LMM assigned to HYGH and DVYA.
While the impact of participation in the NYSE Arca ETP Incentive
Program, which is optional, cannot be fully understood until objective
observations can be made in the context of the NYSE Arca ETP Incentive
Program, potential impacts on the market quality of HYGH and DVYA may
result, including with respect to the average spread and average quoted
size for HYGH and DVYA.
A link to the NYSE Arca ETP Incentive Program rule can be found here.
A link to the SEC’s approval of NYSE Arca’s ETP Incentive Program can be
found here.
Information regarding ETPs participating in the NYSE Arca ETP Incentive
Program, the assigned LMMs and the amount of the Optional Incentive Fee
for each ETP, including for HYGH and DVYA, can be found at here.
Questions regarding the NYSE Arca ETP Incentive Program should be
directed to etf@nyx.com.
Questions regarding the participation of HYGH and DVYA in the NYSE Arca
ETP Incentive Program should be directed to USiSharesCapitalMarkets@blackrock.com.
About BlackRock
BlackRock is a leader in investment management, risk management and
advisory services for institutional and retail clients worldwide. At
September 30, 2014, BlackRock’s AUM was $4.525 trillion. BlackRock helps
clients meet their goals and overcome challenges with a range of
products that include separate accounts, mutual funds, iShares®
(exchange-traded funds), and other pooled investment vehicles. BlackRock
also offers risk management, advisory and enterprise investment system
services to a broad base of institutional investors through BlackRock
Solutions®. Headquartered in New York City, as of
September 30, 2014, the firm had approximately 12,100 employees in more
than 30 countries and a major presence in key global markets, including
North and South America, Europe, Asia, Australia and the Middle East and
Africa. For additional information, please visit the Company’s website
at www.blackrock.com
| Twitter: @blackrock_news
| Blog: www.blackrockblog.com
| LinkedIn: www.linkedin.com/company/blackrock
About iShares
iShares is a global leader in exchange-traded funds (ETFs), with more
than a decade of expertise and commitment to individual and
institutional investors of all sizes. With over 700 funds globally
across multiple asset classes and strategies and more than $1 trillion
in assets under management as of September 30, 2014, iShares helps
clients around the world build the core of their portfolios, meet
specific investment goals and implement market views. iShares funds are
powered by the expert portfolio and risk management of BlackRock,
trusted to manage more money than any other investment firm1.
1. Based on $4.525T in AUM as of 9/30/14.
Carefully consider the Funds' investment objectives, risk factors,
and charges and expenses before investing. This and other information
can be found in the Funds' prospectuses or, if available, the summary
prospectuses which may be obtained by visiting www.iShares.com
or www.blackrock.com.
Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal.
Fixed income risks include interest-rate and credit risk. Typically,
when interest rates rise, there is a corresponding decline in bond
values. Credit risk refers to the possibility that the bond issuer will
not be able to make principal and interest payments.
Non-investment-grade debt securities (high-yield/junk bonds) may be
subject to greater market fluctuations, risk of default or loss of
income and principal than higher-rated securities.
International investing involves risks, including risks related to
foreign currency, limited liquidity, less government regulation and the
possibility of substantial volatility due to adverse political, economic
or other developments. These risks often are heightened for investments
in emerging/developing markets and in concentrations of single countries.
HYGH is actively managed and does not seek to replicate the performance
of a specified index. The Fund may have a higher portfolio turnover than
funds that seek to replicate the performance of an index. The Fund's use
of derivatives may reduce the Fund's returns and/or increase volatility
and subject the Fund to counterparty risk, which is the risk that the
other party in the transaction will not fulfill its contractual
obligation. The Fund could suffer losses related to its derivative
positions because of a possible lack of liquidity in the secondary
market and as a result of unanticipated market movements, which losses
are potentially unlimited. There can be no assurance that HYGH's hedging
transactions will be effective. Investing in long/short strategies
presents the opportunity for significant losses, including the loss of
your total investment. Such strategies have the potential for heightened
volatility and in general, are not suitable for all investors.
Investment in the Fund is subject to the risk of the underlying Funds.
There is no guarantee that any fund will pay dividends.
The Funds are distributed by BlackRock Investments, LLC (together with
its affiliates, “BlackRock”).
©2014 BlackRock, Inc. All rights reserved. iSHARES, BLACKROCK
and BLACKROCK SOLUTIONS are registered trademarks of BlackRock,
Inc., or its subsidiaries. All other marks are the property of their
respective owners. iS-14270-0115
BlackRock
Diane Henry, 415-670-4567
Diane.Henry@blackrock.com
Source: BlackRock, Inc.