ETEC Profile
The iShares Breakthrough Environmental Solutions ETF is designed to invest in equity securities of companies pioneering innovative technologies and solutions aimed at addressing climate change. The fund's underlying index tracks the performance of both U.S. and international companies that are engaged in cutting-edge environmental solutions. This includes firms that are developing or utilizing breakthrough technologies to mitigate the impacts of climate change, such as advancements in renewable energy, energy efficiency, and sustainable resource management.
The index selection process, managed by Morningstar or its affiliates, focuses on identifying companies that are at the forefront of environmental innovation. This encompasses a broad range of sectors, including clean energy, water purification, waste management, and green infrastructure. By investing in companies that are making significant strides in these areas, the fund aims to offer exposure to sectors poised for growth due to increasing global emphasis on sustainability and environmental stewardship.
Under normal market conditions, the fund allocates at least 90% of its assets to the securities that constitute the underlying index. This commitment ensures that the ETF remains closely aligned with the index's focus on breakthrough environmental solutions. Additionally, the fund may also hold up to 10% of its assets in securities that are not included in the index, allowing for some flexibility in its investment strategy.
As a non-diversified fund, the iShares Breakthrough Environmental Solutions ETF may concentrate its investments in a smaller number of securities compared to more broadly diversified funds. This concentration allows the ETF to target specific companies that are leaders in environmental innovation. The fund's strategy includes regular rebalancing to reflect changes in the underlying index and maintain its alignment with the evolving landscape of environmental solutions. Through this approach, the ETF seeks to provide investors with a focused opportunity to capitalize on advancements in technology that contribute to addressing global environmental challenges.
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