iShares risk warning
Investing in iShares ETFs can expose you to market and currency risk, and you can lose some, or all of your investment should the value of the underlying securities decrease. iShares ETFs are UCITS funds, meaning that the fund's securities are held within segregated accounts or companies. In the case of the insolvency of the ETF provider (BlackRock) there is no counterparty risk as the fund's assets are separated from BlackRock's assets. iShares ETFs holding cash positions will do so with the custodian or another depository. In the event of the insolvency of this entity, iShares will be treated as a general creditor in relation to cash holdings.
iShares ETFs that carry the word "swap" within their fund name can use total return swaps to replicate the index performance, meaning investors can be exposed to the counterparty risk of the swap provider to a maximum of 10% of the fund's value.
For more details please refer to the prospectus available from the iShares website www.iShares.co.uk