iShares US Large & Mid Cap Buffer 10% December UCITS ETF USD (Acc)

Issuer: iShares

Asset Class: Equity

TER: 50

Trading Currency: GBP

Pays Income: False

Listing Date: 06 Jan 2026

Ticker: TEND

ISIN: IE000Z5YU8X3

This actively managed fund is designed for investors seeking participation in the U.S. equity market with a layer of downside protection. The fund's primary objective is to deliver a defined outcome based on the performance of a reference asset tracking U.S. large-cap stocks. Specifically, it aims to shield investors from the first 10% of losses incurred by the reference asset during a specified one-year period, known as the 'outcome period.' This built-in buffer provides a measure of certainty in moderately declining markets, appealing to those with a lower tolerance for risk or who wish to mitigate potential drawdowns in their portfolio.

In exchange for this downside protection, the fund's potential upside is capped at a predetermined level. This 'cap' is established at the beginning of each annual outcome period and represents the maximum potential return the fund can achieve, even if the reference asset performs better. The strategy is implemented through a portfolio of Flexible Exchange (FLEX) Options. This structure creates a defined return profile within a specific range: investors participate in gains up to the cap and are protected from initial losses down to the buffer limit, but remain exposed to any losses that exceed the 10% buffer. The fund's outcome period resets annually, at which point a new cap and buffer are established for the subsequent year.

This investment is particularly suitable for individuals who are generally more conservative but still want exposure to the growth potential of U.S. large- and mid-cap stocks. It offers a way to temper portfolio volatility without completely exiting the equity market. Investors should be aware that the defined outcomes are predicated on holding the shares for the entire one-year outcome period. Buying or selling shares mid-period may result in a different investment outcome than the stated buffer and cap, as the share price will fluctuate with the underlying market.