Last year was a reminder of the interconnection between politics and markets. Many investors use ETFs for an efficient, flexible way to express a market view on a political event. Increasingly, investors are also using ETF options - both to express views and gauge market sentiment ahead of and during political events. With a full political calendar planned in 2018, consider watching ETF and ETF options activity to provide insight into market sentiment.
2018 geopolitical calendar
| Date | Country/Region | Event | Related iShares ETFs | |
| First quarter | ||||
|---|---|---|---|---|
| 1/23 | Japan | Bank of Japan Meeting* | EWJ† | HEWJ† |
| 1/25 | Eurozone | European Central Bank Meeting* | EZU† | HEZU† |
| 1/28 | Finland | Presidential Election (1st round) | EFNL | |
| 2/11 | Finland | Presidential Election (2nd round, if needed) | EFNL | |
| March | North America | NAFTA Negotiation deadline | EWW† | EWC† |
| 3/4 | Italy | General election (Congress, Prime Minister) | EWI† | HEWI |
| 3/8 | Eurozone | European Central Bank Meeting* | EZU† | HEZU† |
| 3/11 | Colombia | Legislative Election | ICOL | |
| 3/18 | Russia | Presidential Election | ERUS† | |
| 3/21 | USA | Federal Reserve Meeting* | IVV† | |
| Second quarter | ||||
| 4/8 | Japan | End of current term for Bank of Japan Governor Kuroda | EWJ† | HEWJ† |
| 4/26 | Eurozone | European Central Bank Meeting* | EZU† | HEZU† |
| 4/27 | Japan | Bank of Japan Meeting* | EWJ† | HEWJ† |
| 5/27 | Colombia | Presidential Election (1st round) | ICOL | |
| 6/13 | USA | Federal Reserve Meeting* | IVV† | |
| 6/14 | Eurozone | European Central Bank Meeting* | EZU† | HEZU |
| 6/17 | Colombia | Presidential Election (2nd round, if needed) | ICOL† | |
| Third quarter | ||||
| 7/1 | Mexico | General election (President and Congress) | EWW† | HEWW |
| 7/26 | Eurozone | European Central Bank Meeting* | EZU† | HEZU† |
| 7/31 | Japan | Bank of Japan Meeting* | EWJ† | HEWJ† |
| 9/13 | Eurozone | European Central Bank Meeting* | EZU† | HEZU† |
| 9/26 | USA | Federal Reserve Meeting* | IVV† | |
| Fourth quarter | ||||
| October | U.K. | EU deadline for UK-EU agreement on Brexit Deal | EWU† | HEWU† |
| 10/7 | Brazil | General election (President and Congress, 1st round) | EWZ† | EWZS |
| 10/25 | Eurozone | European Central Bank Meeting* | EZU† | HEZU† |
| 10/28 | Brazil | General election (President and Congress, 2nd round) | EWZ† | EWZS |
| 10/31 | Japan | Bank of Japan Meeting* | EWJ† | HEWJ† |
| 11/6 | USA | Legislative elections (midterm) and state governorships | IVV† | |
| 12/13 | Japan | General elections (House of Representatives, Prime Minister) | EWJ† | HEWJ† |
| 12/13 | Eurozone | European Central Bank Meeting* | EZU† | HEZU† |
| 12/19 | USA | Federal Reserve Meeting* | IVV† | |
* The Fed and ECB meetings shown are those accompanied by press conferences. The BoJ events shown are followed by the publication of the central bank’s outlook report.
† Funds with listed options available as of 12/31/17.
Dates reflected are as of 1/5/18 and are subject to change.
Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses, which may be obtained by visiting the iShares Fund and BlackRock Fund prospectus pages. Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal.
International investing involves risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. These risks often are heightened for investments in emerging/ developing markets or in concentrations of single countries.
Frontier markets involve heightened risks related to the same factors and may be subject to a greater risk of loss than investments in more developed and emerging markets.
A fund's use of derivatives may reduce a fund's returns and/or increase volatility and subject the fund to counterparty risk, which is the risk that the other party in the transaction will not fulfill its contractual obligation. A fund could suffer losses related to its derivative positions because of a possible lack of liquidity in the secondary market and as a result of unanticipated market movements, which losses are potentially unlimited. There can be no assurance that any fund's hedging transactions will be effective.
Investment in a fund of funds is subject to the risks and expenses of the underlying funds.
The strategies discussed are strictly for illustrative and educational purposes and are not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. There is no guarantee that any strategies discussed will be effective.
This material represents an assessment of the market environment as of the date indicated; is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any issuer or security in particular.
This document contains general information only and does not take into account an individual's financial circumstances. This information should not be relied upon as a primary basis for an investment decision. Rather, an assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial advisor before making an investment decision.
Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of "Characteristics and Risks of Standardized Options." Copies of this document may be obtained from your broker, from any exchange on which options are traded or by contacting The Options Clearing Corporation, One North Wacker Dr., Suite 500, Chicago, IL 60606 (1-888-678-4667). The document contains information on options issued by The Options Clearing Corporation. The document discusses exchange traded options issued by The Options Clearing Corporation and is intended for educational purposes. No statement in the document should be construed as a recommendation to buy or sell a security or to provide investment advice. If you need further information, please feel free to call the Options Industry Council Helpline. They will be able to provide you with balanced options education and tools to assist you with your iShares options questions and trading. The Options Industry Council Helpline phone number is 1-888-Options (1-888-678-4667) and its website is www.888options.com.
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