IHAK Profile
The iShares Cybersecurity and Tech ETF is designed to provide investors with exposure to the rapidly growing field of cybersecurity and technology. Managed by BlackRock Fund Advisors, the ETF invests primarily in securities that are included in its underlying index. To maintain close alignment with the index, the fund allocates at least 80% of its assets to these component securities or to investments with similar economic characteristics. This strategy ensures that the fund mirrors the performance of its benchmark while targeting key sectors within the technology industry.
The index tracked by the fund includes a diverse range of companies from both developed and emerging markets that are engaged in cybersecurity and related technology sectors. This encompasses firms involved in the development and provision of cybersecurity hardware, software, and services. By focusing on these niche areas, the fund seeks to capitalize on the increasing demand for cybersecurity solutions amid growing concerns over digital security threats and data protection.
In addition to its core investments, the fund may allocate up to 20% of its assets to futures, options, and swap contracts, as well as cash and cash equivalents. These additional instruments provide the fund with flexibility to manage liquidity and hedge against potential risks. The strategic use of derivatives and cash helps in maintaining the desired exposure while also navigating market volatility and optimizing the fund's performance.
The iShares Cybersecurity and Tech ETF is categorized as non-diversified, reflecting its concentrated focus on the cybersecurity and technology sectors. This specialized approach allows investors to gain targeted exposure to a high-growth area of the market, offering potential benefits from technological advancements and increasing investments in cybersecurity infrastructure. By investing in companies at the forefront of these critical fields, the ETF aims to deliver capital appreciation and growth aligned with the evolving demands of the digital age.
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