iShares Diversified Commodity Swap ETF (ISCMF)

Overview

The iShares VI Public Limited Company - iShares Diversified Commodity Swap UCITS ETF is a dynamic exchange-traded fund (ETF) initiated by the renowned BlackRock Asset Management Ireland Limited. Operated under the skilled guidance of BlackRock Advisors (UK) Limited, this ETF is strategically domiciled in Ireland, offering its inception on July 18, 2017. It extends an innovative approach towards investing in the commodity markets, embracing a wide array of commodities including energy, agriculture, precious metals, industrial metals, and livestock through the utilization of derivatives like swaps and futures. The overarching goal of this ETF is to meticulously mirror the performance of the Bloomberg Commodity USD Total Return Index. This is achieved through the sophisticated use of synthetic replication methodology, underscoring its commitment to providing investors with a diversified exposure to commodities.

Products and Services

The iShares VI Public Limited Company - iShares Diversified Commodity Swap UCITS ETF presents a singular product with a multifaceted approach to commodity investment:

• Derivative-Based Commodity Investment:

  This ETF specializes in leveraging derivatives, specifically swaps and futures, as a pivotal part of its investment strategy. This approach facilitates targeted investments across a broad spectrum of commodity sectors including energy, agriculture, industrial metals, precious metals, and livestock. The utilitarian use of derivatives enables the fund to efficiently gain exposure to these commodities without the need for direct investment in physical assets.

• Synthetic Replication of the Bloomberg Commodity Index:

  One of the hallmark strategies of the iShares Diversified Commodity Swap UCITS ETF is its aim to replicate the performance of the Bloomberg Commodity USD Total Return Index. By employing a synthetic replication methodology, the fund seeks to achieve congruence with the index's returns. This strategy not only underscores the ETF's diversified approach to commodity investment but also aims to mitigate risks and enhance potential returns for investors by closely following the benchmark's performance through calculated derivative positions.