IJS Profile
The iShares S&P Small-Cap 600 Value ETF is designed to track the performance of the small-cap value segment within the U.S. equity market. This fund focuses on investing in small-cap companies that are identified as undervalued relative to their intrinsic value, with an emphasis on those with lower price-to-earnings ratios and higher dividend yields. By targeting these value-oriented small-cap stocks, the ETF seeks to offer investors exposure to potential growth opportunities and income generation in this segment.
The ETF invests at least 80% of its assets in the securities that comprise its benchmark index, which represents the small-cap value sector of the S&P SmallCap 600 Index. This index includes companies with smaller market capitalizations that exhibit value characteristics. The fund also maintains investment in securities that have economic characteristics substantially similar to those of the index’s component securities, ensuring alignment with the performance of the underlying index.
In addition to direct investments in index components, the fund may allocate up to 20% of its assets to various financial derivatives, such as futures, options, and swap contracts. This strategic flexibility allows the fund to engage in risk management practices, enhance returns, and adjust exposures as necessary. The fund may also hold cash and cash equivalents, which provides liquidity for operational needs and potential investment opportunities.
The iShares S&P Small-Cap 600 Value ETF offers investors a targeted approach to small-cap value investing by focusing on undervalued stocks within the smaller end of the market. Managed by iShares, a leader in ETF management, this fund is designed to deliver cost-effective and efficient exposure to the small-cap value sector, providing a valuable tool for investors seeking to diversify their portfolios with small-cap value investments.
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