iShares VII PLC - iShares Europe Defence UCITS ETF EUR (Acc)

The Share Class is a share class of a Fund which aims to achieve a total return, through a combination of capital growth and income on the Fund’s assets, which reflects the return of the STOXX Europe Targeted Defence Index, the Fund’s benchmark index (“Index”). The Share Class, via the Fund, is passively managed and aims to invest so far as possible and practicable in the equity securities (e.g. shares) that make up the Index. The Index is a free-float adjusted market capitalisation weighted index that comprises European equity securities of companies included in the STOXX Europe AC All Cap Index (the "Parent Index") which receive revenue from business activities relating to military equipment and services. To be eligible for inclusion in the Index companies must (i) have a 3 month median daily traded volume (MDTV) greater than or equal to €1 million (EUR) (ii) have a free float market capitalisation greater than or equal to €200 million (EUR) and (iii) meet the inclusion criteria defined by their revenue exposure to military equipment and services as determined by the index provider. Free float-adjusted market capitalisation is the share price of a company multiplied by the number of shares readily available in the market. The Index selects companies from the Parent Index determined to derive a minimum percentage of revenue from "Military Equipment and Services" as described in the prospectus for the Fund. The companies are further assigned to one of three tiers (High Revenue Tier, Medium Revenue Tier or Low Revenue Tier) depending on how much of their revenue comes from Military Equipment and Services. The index provider will seek to allocate a minimum proportion of the Index to each of the three revenue tiers while seeking to weight the Index to achieve a higher exposure to those companies in the High and Medium revenue tiers (based on thresholds set out in the index methodology). The Index seeks to exclude companies classified as non-compliant with the United Nations Global Compact (UNGC) Principles and excludes issuers deemed by the index provider to be involved in controversial weapons. Companies will also be excluded if data in respect of involvement in controversial weapons or compliance with UNGC Principles is unavailable. The Index rebalances on an annual basis. In addition, on a monthly basis, current constituents of the Index are screened for their involvement in UNGC and controversial weapons, and companies which are no longer eligible will be removed from the Index. The Fund intends to replicate the Index by holding equity securities, which make up the Index, in similar proportions to it. The Investment Manager may use financial derivative instruments (“FDIs”) (i.e. investments the prices of which are based on one or more underlying assets) to help achieve the Fund’s investment objective. FDIs may be used for direct investment purposes. The Fund may also engage in short-term secured lending of its investments to certain eligible third parties to generate additional income to off-set the costs of the Fund. Recommendation: This Fund is suitable for medium to long term investment, though the Fund may also be suitable for shorter term exposure to the Index. Your shares will be accumulating shares (i.e. income will be included in their value). Your shares will be denominated in Euro, the Fund's base currency. The shares are listed on one or more stock exchanges and may be traded in currencies other than their base currency. The performance of your shares may be affected by this currency difference. In normal circumstances, only authorised participants (e.g. select financial institutions) may deal in shares (or interests in shares) directly with the Fund. Other investors can deal in shares (or interests in shares) daily through an intermediary on stock exchange (s) on which the shares are traded. Indicative net asset value is published on relevant stock exchanges websites. For more information on the Fund, Share Class, risks and charges, please see the Fund's prospectus, available on the product pages at www.blackrock.com