IYY Profile
The iShares Dow Jones U.S. ETF is designed to provide broad exposure to the U.S. equity market by tracking the performance of an index that encompasses a wide array of U.S. companies. The fund invests at least 80% of its assets in the component securities of its underlying index and in investments that have economic characteristics substantially identical to those of the index’s component securities. This strategy ensures that the ETF mirrors the performance of the index, capturing key movements within the U.S. stock market.
The underlying index aims to represent the top 95% of U.S. companies based on float-adjusted market capitalization. This includes a diverse range of sectors and industries, reflecting the overall health and performance of the U.S. economy. The index is constructed to provide a comprehensive snapshot of the market, including large, mid, and small-cap companies, which collectively cover a significant portion of the investable U.S. equity market.
By focusing on float-adjusted market capitalization, the index emphasizes the market value of shares available for trading, thereby offering a more accurate representation of market activity and liquidity. This approach ensures that the index includes companies that are actively traded and have substantial market presence, while excluding those with limited trading volumes or non-tradable shares.
As a result, the iShares Dow Jones U.S. ETF serves as a versatile investment tool for gaining exposure to the broad U.S. equity market. The fund’s strategy allows investors to benefit from the overall market performance while maintaining a diversified portfolio across various sectors and market capitalizations. This broad-based approach is ideal for those seeking to capture the general trends and growth of the U.S. economy through a single investment vehicle.
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