IXC Profile
The iShares Global Energy ETF is an investment vehicle that aims to provide exposure to the global energy sector through a diversified portfolio of energy-related companies. The fund typically allocates at least 80% of its assets to the component securities of its underlying index, which includes companies engaged in the exploration, extraction, production, and distribution of energy resources. This approach allows investors to gain broad exposure to major players in the energy sector, including those involved in oil, natural gas, and renewable energy sources.
The index tracked by the fund encompasses a wide range of global energy companies that are deemed significant to the energy markets by the index provider. This includes firms that operate across various segments of the energy industry, from upstream activities like drilling and exploration to downstream activities such as refining and marketing. The fund’s objective is to reflect the performance of these companies, which are selected based on their impact and relevance within the global energy landscape.
In addition to investing in the component securities of the index, 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 investments are employed to enhance liquidity, manage risk, and provide flexibility in pursuing the fund’s investment objectives. The use of these financial instruments allows the fund to adapt to changing market conditions and maintain its target exposure to the energy sector.
Managed by iShares, a leading provider of exchange-traded funds, the iShares Global Energy ETF is designed for investors seeking targeted exposure to the global energy market. The fund’s non-diversified nature reflects its focus on a specific sector, which may lead to higher volatility compared to more broadly diversified investments. By concentrating on the energy sector, the fund offers investors a specialized opportunity to capitalize on trends and developments within this critical component of the global economy.
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