IHF Profile
The iShares U.S. Healthcare Providers ETF is designed to track the performance of the U.S. healthcare providers sector within the equity market, as determined by SPDJI. The ETF aims to provide investment results that closely correspond to the performance of the Health Care Providers Index, which includes a range of companies involved in providing healthcare services, including hospitals, nursing facilities, and outpatient care services. The index comprises companies that are primarily engaged in healthcare services, excluding those involved in the pharmaceutical or biotechnology sectors.
The fund commits to investing at least 80% of its assets in the securities that are components of its target index. This strategy ensures that the ETF's portfolio mirrors the composition of the index, capturing its performance. Additionally, the ETF may invest in securities with similar economic characteristics to those in the index to maintain alignment. It also retains the flexibility to allocate up to 20% of its assets in various financial instruments such as futures, options, and swap contracts, as well as in cash and cash equivalents, which helps in managing liquidity and hedging strategies.
The ETF is non-diversified, which means it can hold a significant portion of its assets in a smaller number of securities compared to a diversified fund. This approach can lead to higher risk but also potential for higher returns. The concentration in the healthcare providers sector means the fund is particularly sensitive to factors affecting this segment, including regulatory changes, shifts in healthcare policy, and market dynamics specific to healthcare services.
As part of the iShares family of exchange-traded funds, this ETF benefits from the extensive resources and expertise of BlackRock, the fund's provider. BlackRock's global reach and sophisticated investment management capabilities aim to enhance the fund's performance and risk management. Investors looking for targeted exposure to the U.S. healthcare providers sector might find this ETF a strategic option for their portfolios, aligning with their investment goals and risk tolerance.
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