Overview: The iShares JP Morgan EM Bond CHF Hedged UCITS ETF Dist is an exchange-traded fund that aims to replicate the performance of an index composed of US dollar-denominated bonds from emerging market countries. This ETF is designed to provide exposure to the bond markets of developing economies while incorporating a hedge against currency fluctuations, making it particularly suitable for investors in Switzerland or those looking to minimize their exposure to the US dollar.
Benefits: This ETF has several strengths, including the diversification it offers through a selection of bonds from sovereign and corporate issuers in emerging markets. By investing in bonds, it can provide regular income in the form of dividends, while also having the potential to benefit from economic growth in these regions. The CHF hedge also helps to reduce currency risk, which can be an advantage for investors seeking to stabilize their returns in local currency.
Risks: Like any investment in bonds, this ETF carries risks, including credit risk related to the solvency of bond issuers. Additionally, emerging markets can be more volatile than developed markets, which may lead to significant fluctuations in the value of the ETF. Investors should also be aware of interest rate risks, as rising rates can negatively impact the value of bonds.
Investor Profile: This ETF is suitable for investors seeking exposure to emerging bond markets while wishing to limit their currency risk. It may appeal to long-term investors looking to diversify their portfolios with fixed-income assets, as well as those willing to accept a certain level of volatility to potentially achieve higher returns than those of developed market bonds.
Total Annual Returns, Including Dividends
The drawdown measures the decline in price from its historical high. It helps assess the fund's downside risk. The calculation includes dividends.
| Volatility | Max drawdown | Sharpe ratio | |
|---|---|---|---|
| 1 year | |||
| 3 years | |||
| 10 years | |||
| Max |