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(as revised January 7, 2021) |
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2020 Prospectus |
• | iShares MSCI Hong Kong ETF | EWH | NYSE ARCA |
(ongoing expenses that you pay each year as a percentage of the value of your investments) | ||||||
Management Fees |
Distribution and Service (12b-1) Fees |
Other Expenses 1 |
Total Annual Fund Operating Expenses | |||
1 |
The amount rounded to 0.00%. |
1 Year |
3 Years |
5 Years |
10 Years | |||
$ |
$ |
$ |
$ |
1 |
One Year |
Five Years |
Ten Years | |||
(Inception Date: |
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Return Before Taxes | |||||
Return After Taxes on Distributions 1 |
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Return After Taxes on Distributions and Sale of Fund Shares 1 |
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MSCI Hong Kong Index (Index returns do not reflect deductions for fees, expenses, or taxes) 2 |
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MSCI Hong Kong 25/50 Index (Index returns do not reflect deductions for fees, expenses, or taxes) 2 |
1 |
2 |
■ | General Impact. This outbreak has resulted in travel restrictions, closed international borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, prolonged quarantines, cancellations, supply chain disruptions, lower consumer demand, temporary closures of stores, restaurants and other commercial establishments, layoffs, defaults and other significant economic impacts, as well as general concern and uncertainty. |
■ | Market Volatility. The outbreak has also resulted in extreme volatility, severe losses, and disruptions in markets which can adversely impact the Fund and its investments, including impairing hedging activity to the extent a Fund engages in such activity, as expected correlations between related markets or instruments may no longer apply. In addition, to the extent the Fund invests in short-term instruments that have negative yields, the Fund’s value may be impaired as a result. Certain issuers of equity securities have cancelled or announced the suspension of dividends. The outbreak has, and may continue to, negatively affect the credit ratings of some fixed income securities and their issuers. |
■ | Market Closures. Certain local markets have been or may be subject to closures, and there can be no assurance that trading will continue in any local markets in which the Fund may invest, when any resumption of trading will occur or, once such markets resume trading, whether they will face further closures. Any suspension of |
trading in markets in which the Fund invests will have an impact on the Fund and its investments and will impact the Fund’s ability to purchase or sell securities in such markets. | |
■ | Operational Risk. The outbreak could also impair the information technology and other operational systems upon which the Fund’s service providers, including BFA, rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform critical tasks relating to the Fund, for example, due to the service providers’ employees performing tasks in alternate locations than under normal operating conditions or the illness of certain employees of the Fund’s service providers. |
■ | Governmental Interventions. Governmental and quasi-governmental authorities and regulators throughout the world have responded to the outbreak and the resulting economic disruptions with a variety of fiscal and monetary policy changes, including direct capital infusions into companies and other issuers, new monetary policy tools, and lower interest rates. An unexpected or sudden reversal of these policies, or the ineffectiveness of such policies, is likely to increase market volatility, which could adversely affect the Fund’s investments. |
■ | Pre-Existing Conditions. Public health crises caused by the outbreak may exacerbate other pre-existing political, social and economic risks in certain countries or globally. |
■ | A lack of market liquidity and market efficiency; |
■ | Greater securities price volatility; |
■ | Exchange rate fluctuations and exchange controls; |
■ | Less availability of public information about issuers; |
■ | Limitations on foreign ownership of securities; |
■ | Imposition of withholding or other taxes; |
■ | Imposition of restrictions on the expatriation of the funds or other assets of the Fund; |
■ | Higher transaction and custody costs and delays in settlement procedures; |
■ | Difficulties in enforcing contractual obligations; |
■ | Lower levels of regulation of the securities markets; |
■ | Weaker accounting, disclosure and reporting requirements; and |
■ | Legal principles relating to corporate governance, directors’ fiduciary duties and liabilities and stockholders’ rights in markets in which the Fund invests may differ from and/or may not be as extensive or protective as those that apply in the U.S. |
■ | Political and Social Risk. Hong Kong reverted to Chinese sovereignty on July 1, 1997 as a Special Administrative Region of the People's Republic of China under the principle of “one country, two systems.” Although China is obligated, under the Sino-British Joint Declaration it signed in 1984, to maintain the current capitalist economic and social system of Hong Kong through June 30, 2047, the continuation of economic and social freedoms enjoyed in Hong Kong is dependent on the government of China. Since 1997, there have been tensions between the Chinese government and many people in Hong Kong who perceive China as tightening its control over Hong Kong’s semi-autonomous liberal political, economic, legal, and social framework. Recent protests and unrest have increased tensions even further. Due to the interconnected nature of the Hong Kong and Chinese economies, this instability in Hong Kong may cause uncertainty in the Hong Kong and Chinese markets. |
■ | Economic Risk. The economy of Hong Kong is closely tied to the economy of China. The Chinese economy has grown rapidly during the past several years and there is no assurance that this growth rate will be maintained. China may experience substantial rates of inflation or economic recessions, causing a negative effect on |
the economy and securities market. Delays in enterprise restructuring, slow development of well-functioning financial markets and widespread corruption have also hindered performance of the Chinese economy, and China continues to receive substantial pressure from trading partners to liberalize official currency exchange rates. |
iShares MSCI Hong Kong ETF | |||||||||
Year Ended 08/31/20 |
Year Ended 08/31/19 |
Year Ended 08/31/18 |
Year Ended 08/31/17 |
Year Ended 08/31/16 | |||||
Net asset value, beginning of year |
$23.00 | $24.18 | $24.69 | $21.08 | $19.42 | ||||
Net investment income (a) |
0.54 | 0.62 | 0.71 | 0.68 | 0.54 | ||||
Net realized and unrealized gain (loss) (b) |
(0.01) | (1.08) | (0.12) | 3.54 | 1.72 | ||||
Net increase (decrease) from investment operations | 0.53 | (0.46) | 0.59 | 4.22 | 2.26 | ||||
Distributions (c) |
|||||||||
From net investment income | (0.62) | (0.72) | (1.10) | (0.61) | (0.60) | ||||
Total distributions | (0.62) | (0.72) | (1.10) | (0.61) | (0.60) | ||||
Net asset value, end of year |
$22.91 | $23.00 | $24.18 | $24.69 | $21.08 | ||||
Total Return |
|||||||||
Based on net asset value | 2.46% | (2.00)% | 2.33% | 20.38% | 11.94% | ||||
Ratios to Average Net Assets |
|||||||||
Total expenses | 0.51% | 0.49% | 0.48% | 0.49% | 0.48% | ||||
Net investment income | 2.37% | 2.52% | 2.83% | 3.08% | 2.73% | ||||
Supplemental Data |
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Net assets, end of year (000) | $1,328,281 | $1,424,663 | $2,729,621 | $1,855,447 | $1,596,576 | ||||
Portfolio turnover rate (d) |
16% | 12% | 7% | 8% | 9% | ||||
(a) Based on average shares outstanding. | |||||||||
(b) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. | |||||||||
(c) Distributions for annual periods determined in accordance with U.S. federal income tax regulations. | |||||||||
(d) Portfolio turnover rate excludes in-kind transactions. |
Call: | 1-800-iShares or 1-800-474-2737 (toll free) Monday through Friday, 8:30 a.m. to 6:30 p.m. (Eastern time) |
Email: | iSharesETFs@blackrock.com |
Write: | c/o BlackRock Investments, LLC 1 University Square Drive, Princeton, NJ 08540 |