The iShares J. P. Morgan $ EM Bond EUR Hedged UCITS ETF is an exchange traded fund (ETF) that aims to track the performance of the J.P.Morgan EMBI Global Core Index hedged to Euro as closely as possible. The ETF invests in physical index securities and builds in currency hedging with the aim of reducing the impact of exchange rate fluctuations between the base currency of the Fund and the currency of the constituent securities in the Index.
The J.P.Morgan EMBI Global Core Index hedged to Euro offers exposure to US Dollar denominated sovereign and quasi-sovereign bonds from Emerging Markets countries. Only bonds with a minimum remaining time to maturity of 2 years at inclusion and a minimum amount outstanding of billion are included in the index. The index also incorporates a monthly hedge, using a one month forward foreign-exchange contract to reduce exposure to the impact of currency fluctuations between the Euro and the US Dollar.