iShares Currency Hedged MSCI Eurozone ETF

iShares Currency Hedged MSCI Eurozone ETF (HEZU) owns large and mid-sized companies in 10 eurozone countries, including Germany, France and the Netherlands. It is a fund of funds: it holds the iShares MSCI Eurozone ETF and adds currency contracts that offset swings between the euro and the US dollar. That means its returns follow European stock prices more than the exchange rate. Total yearly expenses are 0.53% after a fee waiver.

• Over the year to Oct 27, 2026, HEZU returned +13.6%, 1st of 8 among similar funds.
• Its 5-year annualized return was +12.0% and its 10-year +11.7%.
• In the 2020 COVID crash it fell 38.8% and regained its old high 9.8 months after the low.
• Its worst full calendar year was 2018 (-10.3%); its best was 2019 (+29.4%).
• The deepest fall in its price history was 38.8% (Feb 19, 2020 to Mar 16, 2020), recovered by Jan 8, 2021.

As of Aug 31, 2026, the fund held 1 securities; the ten largest made up 100.93% of assets.

• Over the three months to Aug 31, 2026, investors added a net $34.6M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +5.02%, -0.67%, +0.67%.

HEZU, from BlackRock's iShares, aims to track the MSCI EMU 100% Hedged to USD Index. The index holds large and mid-sized companies in 10 countries that use the euro, including Germany, France, Italy and Spain (as of August 31, 2025). HEZU is a fund of funds: instead of buying those stocks directly, it holds the iShares MSCI Eurozone ETF. That ETF made up about 101% of net assets as of August 31, 2026, alongside six currency contracts.

The currency hedge uses forward contracts (agreements to exchange currencies at a set rate on a future date). The fund effectively agrees to sell euros one month ahead, equal to the value of its euro holdings, and resets this hedge monthly. Some contracts may settle in cash in US dollars. When the euro falls against the dollar, HEZU is designed to beat an equivalent unhedged investment, and to lag when the euro rises. The hedge may not perfectly offset currency moves.

BlackRock uses representative sampling, holding securities that resemble the index rather than necessarily every member. The fund generally keeps at least 80% of assets in index components, counting those held through the underlying fund, and may put up to 20% in futures, options, swaps, cash and other securities. It may also lend securities worth up to one-third of total assets.

• HEZU charges 0.53% a year, versus an average of 0.86% for the similar funds below (1st of 8, cheapest first).
• Of that, 0.62% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.59% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $54 in the first year and $1,063 over 10 years (assuming a 5% annual return).

It adds eurozone stocks to a US-focused portfolio while removing most of the effect of the euro-dollar exchange rate.

HEZU could give a portfolio exposure to European companies, without the extra ups and downs of the euro. It is still a stock fund, and it has fallen hard at times. It launched in July 2014, so it has no record from the 2008 crisis. In the 2020 COVID crash it lost 38.8% between February 19 and March 16, 2020, and took about 9.8 months to recover. In the 2022 bear market it fell 22.7% and recovered in about 4.1 months. Its worst calendar year was 2018, at about −10%. Anyone who had to cash out shares near those lows would have locked in the losses. The trailing yield was 2.63% as of October 27, 2026. Payments come twice a year, so the income arrives in lumps. In the SEC's $10,000 example, costs total $54 after one year and $1,063 after 10 years. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.

Matched by other buffer (defined-outcome) funds, largest first.