IVVM Profile
The iShares Large Cap Moderate Buffer ETF is designed to offer investors a strategic blend of equity exposure with built-in risk management. Under normal market conditions, the fund invests at least 80% of its net assets in large-capitalization equity securities or similar financial instruments. This approach targets companies with substantial market capitalizations, typically those that are well-established and have demonstrated stability and growth potential.
The fund employs a unique options-based strategy aimed at balancing potential returns with risk mitigation. It seeks to deliver exposure to the share price performance of its underlying ETF, capping the potential upside to a predetermined level. Concurrently, the strategy includes downside protection designed to shield against the first 5% of losses incurred by the underlying ETF. This dual focus on limiting downside risk and managing volatility is intended to provide a more stable investment experience over each calendar quarter, or Hedge Period.
The fund's approach is structured to reduce volatility and manage risk while maintaining significant exposure to large-cap equity markets. By utilizing options, the fund seeks to offer investors a level of protection against moderate declines, making it a suitable choice for those seeking a balanced risk-return profile. The options strategy is calibrated to align with the fund's objectives of both capturing upside potential and safeguarding against initial losses.
Managed by BlackRock, the iShares Large Cap Moderate Buffer ETF reflects a sophisticated investment strategy designed to cater to investors who are looking for a combination of growth potential and downside protection. The fund’s non-diversified nature and focus on large-cap equities, along with its strategic use of options, make it a distinctive choice for those seeking to manage risk while benefiting from exposure to major equity markets.
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