BlackRock Lists iShares $ EM Bond Active UCITS ETF (USOV) on London Stock Exchange

The sterling-hedged, distributing share class of BlackRock’s actively managed emerging market bond fund makes its debut in London, offering investors targeted exposure with a 0.45% total expense ratio.

Trading under the ticker USOV (ISIN: IE000TCMASP9), the share class is denominated in sterling and provides GBP-hedged exposure, with quarterly income distributions. The fund sits within iShares III plc, is domiciled in Ireland, and carries a total expense ratio (TER) of 0.45%. This listing provides UK investors with a sterling-hedged route into BlackRock’s actively managed emerging market bond strategy, which was first launched in April 2026.

Investment Focus

The underlying fund invests a minimum of 70% of its assets in emerging market government and corporate bonds, which are predominantly denominated in US dollars. Holdings may span investment grade, below investment grade, or unrated securities and can feature fixed or floating interest rates. The strategy integrates an ESG policy and is classified under SFDR Article 8.

Derivatives—including futures, forward contracts, and swaps—may be used for both investment exposure and efficient portfolio management. While the JP Morgan EMBI Global Diversified Index serves as a reference benchmark, the fund is actively managed and does not seek to track it.

Objective and Management

BlackRock describes the fund’s goal as a total return, combining capital growth and income generation. The strategy is managed by a team of three portfolio managers: Michel Aubenas, Ana-Sofia Monck, and Kirill Veretinskii.

USOV Share Class Details

The newly listed GBP-hedged distributing share class is structured as follows:

This is currently the only listing for the GBP-hedged distributing share class. The broader fund also includes a US dollar accumulating share class (ISIN IE000D9S4LT3, ticker ISOV), available on Euronext Amsterdam and SIX Swiss Exchange, and a euro-hedged accumulating share class listed on Euronext Amsterdam under the ticker ISVO.

Why Active Management in EM Debt

BlackRock’s strategy is built on the view that emerging market debt is an asset class where rigorous security selection and active risk management can add more value than passive index replication, given the complexity and comparatively lower liquidity of the market relative to developed market fixed income.

Key Risks

The fund is subject to several risk factors. Interest rate and credit risk are inherent to fixed income investing; the strategy seeks to manage interest rate exposure while retaining full credit exposure. Emerging market issuers typically carry higher credit risk than their developed market counterparts, and the segment is exposed to greater liquidity risk, restrictions on investment or asset transfer, and potential settlement delays. Because the USOV share class is GBP-hedged, it also carries counterparty risk related to the derivatives used for currency hedging. Additionally, the fund’s ESG screening may narrow the investable universe relative to non-screened alternatives, which BlackRock notes could affect performance.

Summary

The London listing broadens access to BlackRock’s actively managed emerging market bond strategy for UK investors seeking sterling-hedged, income-focused exposure. USOV becomes the third share class of the fund, joining the US dollar and euro-hedged accumulating classes already trading in Amsterdam and Zurich.