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