How closely correlated is the performance of iShares € Inflation Linked Bond with the underlying index?
iShares funds are designed to replicate the underlying index. When there are changes made to the index, the investment manager (Barclays Global Investors) will adjust the weightings of the underlying shares in the relevant fund. Any temporary discrepancies between the index and the composition of the fund will cause a short-term performance difference between iShares and the underlying index but the investment manager always seeks to minimize this. In addition, it will not always be possible for iShares to fully replicate and maintain exactly the composition and weighting of the relevant index as the rules governing what iShares funds can hold may differ from what the index can hold. As indices do not take into account management fees or commissions paid when buying and selling shares, the funds will be impacted by these charges where the index will not. However, efficient portfolio management and revenue from lending the underlying securities can sometimes help offset some of the effe
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