IXN Profile
The iShares Global Tech ETF is a specialized fund that focuses on the global technology sector. It tracks an index that measures the performance of all companies within the S&P Global 1200 Index classified under the Global Industry Classification Standard (GICS) information technology sector. This sector includes a wide range of technology-related industries such as software, hardware, semiconductors, and IT services, providing investors with broad exposure to technology-driven companies around the world.
The fund generally allocates at least 80% of its assets to the component securities of its underlying index and to investments that have economic characteristics substantially identical to those component securities. This approach ensures that the fund closely mirrors the performance of the index, reflecting the collective performance of leading global technology companies. The index itself includes major technology firms from diverse geographic regions, representing a significant portion of the technology sector's market capitalization.
To manage its investment strategy and enhance liquidity, the fund may invest 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. These additional investments help the fund to manage risks and respond to market changes while maintaining its focus on the technology sector. The use of derivatives and cash holdings provides flexibility and can potentially enhance returns or provide protection against market volatility.
As a non-diversified fund, the iShares Global Tech ETF is concentrated in the technology sector, which can lead to higher volatility compared to more diversified funds. Managed by iShares, a leading global provider of exchange-traded funds, this ETF offers investors a targeted way to gain exposure to a sector known for its innovation and rapid growth. By investing in this ETF, investors can participate in the performance of global technology leaders and benefit from advancements and trends driving the future of technology.
|
