iShares Latin America 40 ETF (ILFD)

Overview

The fund focuses on investing primarily in the component securities of its underlying index, allocating at least 80% of its assets to these securities and other investments that closely mirror the economic characteristics of the component securities of the S&P Latin America 40TM. This underlying index consists of selected stocks trading on the stock exchanges of five Latin American countries, aiming to capture the investment outcomes of this region. The approach is singular in its concentration, as the fund maintains a non-diversified status, putting a significant portion of its assets into a relatively small number of investments to achieve its objectives.

Products and Services

Within its strategy, the fund offers the following key investment focus:

• Component Securities Investment: The primary product of the fund involves investing a minimum of 80% of its assets in the securities that form the underlying index. This approach is designed to ensure that the fund’s investment performance closely aligns with the performance of the S&P Latin America 40TM Index.
• Investment in Economic Equivalents: Beyond direct investment in the index securities, the fund also seeks investments that have economic characteristics substantially identical to those of the securities in the underlying index. This includes various financial instruments and derivatives that mimic the performance of the index components, offering investors exposure to the same economic outcomes.
• Focus on Latin American Equities: The fund targets its investments towards equities trading on the exchanges of five Latin American countries. This regional focus allows investors to gain exposure to the growth potential and investment opportunities within the Latin American market, diversifying their investment portfolio geographically within the scope of the fund’s non-diversified framework.