MXI Profile
The iShares Global Materials ETF is designed to track the performance of companies within the global materials sector, as identified by S&P Dow Jones Indices (SPDJI). This index encompasses firms involved in the extraction and processing of raw materials, including but not limited to metals, minerals, chemicals, and forestry products. The ETF aims to capture the performance of these companies, which are considered pivotal to the global economy due to their role in providing essential raw materials for a range of industries.
Under normal market conditions, the fund invests at least 80% of its assets in the securities that constitute its benchmark index, as well as in investments with economic characteristics closely matching those of the index components. This strategy ensures that the fund's performance closely mirrors that of the index, providing investors with targeted exposure to the materials sector. The fund’s portfolio typically includes a diverse range of companies from various sub-sectors within materials, reflecting the broad scope of the industry.
In addition to its core investments, the iShares Global Materials ETF has the flexibility to allocate up to 20% of its assets in certain financial instruments such as futures, options, and swap contracts. This allocation may also include cash and cash equivalents. Such investments can help manage liquidity, hedge risks, and potentially enhance returns by gaining exposure to the materials sector through derivatives and other financial instruments.
The fund’s approach allows it to adapt to changing market conditions and sector dynamics while maintaining a strong focus on companies that play a critical role in the global materials market. By investing in this ETF, investors gain access to a diversified portfolio of materials companies, providing a means to participate in the economic cycles and growth prospects associated with the materials sector on a global scale.
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