IHI Profile
The iShares U.S. Medical Devices ETF is designed to provide investors with exposure to the performance of the U.S. medical devices sector. The fund focuses on companies involved in the development, manufacturing, and commercialization of medical equipment and related technologies. By investing in this sector, the ETF aims to capture the growth potential and innovations within the medical devices industry, which includes a wide range of products such as diagnostic equipment, surgical instruments, and implantable devices.
To meet its investment objectives, the fund will allocate at least 80% of its assets to the component securities of the underlying index. This index is comprised of publicly traded companies that operate within the medical devices sector, reflecting their performance and market capitalization. The ETF may also invest in securities that are substantially identical to those in the index to ensure that the fund closely tracks its performance. Additionally, the fund has the flexibility to invest up to 20% of its assets in futures, options, and swap contracts, as well as cash and cash equivalents, to manage liquidity and enhance portfolio efficiency.
The underlying index for the fund is specifically curated to represent the U.S. medical devices sector. It includes companies that are engaged in the production and distribution of medical devices and technologies. The index serves as a benchmark for the ETF, guiding its investment strategy and ensuring that the fund’s holdings align with the sector’s performance. By focusing on this index, the fund provides investors with targeted exposure to a sector that is critical to healthcare advancements and patient care.
As a non-diversified fund, the iShares U.S. Medical Devices ETF concentrates its investments within the medical devices sector. This sector-specific focus allows investors to gain concentrated exposure to the industry, but it also comes with the inherent risks associated with sector concentration. The ETF’s investment strategy aims to leverage the growth and innovation within the medical devices field, making it a suitable choice for investors looking to capitalize on developments in healthcare technology.
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