BLCV Profile
BlackRock ETF Trust - BlackRock Large Cap Value ETF is designed to offer investors exposure to large-cap equity securities that are considered undervalued relative to their intrinsic worth. The fund’s primary investment strategy involves allocating at least 80% of its net assets, along with any borrowings for investment purposes, into large-cap stocks and derivatives with similar economic characteristics. This approach emphasizes equity securities of large companies that exhibit value characteristics, as assessed by BlackRock Fund Advisors (BFA).
The fund focuses on identifying and investing in large-cap companies whose market prices are perceived to be below their intrinsic value. BFA employs a value investing strategy, seeking out stocks that are trading at a discount relative to their fundamental worth. This strategy aims to capitalize on potential price corrections and long-term appreciation, driven by the belief that these undervalued stocks offer higher returns compared to their market prices.
In addition to investing in large-cap equity securities, the fund may also use derivatives to gain exposure to similar economic characteristics. These derivatives are employed to manage risk or enhance the fund's ability to achieve its investment objectives. The use of derivatives allows for greater flexibility and precision in aligning the fund's performance with its value-oriented investment strategy.
The BlackRock Large Cap Value ETF is classified as non-diversified, meaning that it concentrates its investments in a narrower range of securities within the large-cap value sector. This concentration provides targeted exposure to companies that meet specific valuation criteria but may result in higher volatility compared to more broadly diversified funds. Investors seeking to benefit from value opportunities within large-cap stocks can utilize this ETF to gain focused exposure to potential long-term growth in undervalued equity markets.
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