RXI Profile
The iShares Global Consumer Discretionary ETF is an exchange-traded fund that aims to provide investors with exposure to the global consumer discretionary sector. The fund primarily invests at least 80% of its total assets in the component securities of its underlying index. Additionally, it may invest in financial instruments with economic characteristics that closely align with the index’s component securities. This investment strategy is designed to replicate the performance of the index, which includes companies engaged in the production of goods and services that are non-essential and sensitive to economic cycles.
The underlying index, managed by S&P Dow Jones Indices LLC, incorporates a capping methodology to control the weight of individual securities within the index. This methodology prevents any single issuer from having an excessively large impact on the index’s performance, thereby maintaining a balanced exposure to various companies within the consumer discretionary sector. The index covers a wide array of industries, including retail, automotive, media, and leisure, reflecting the diverse nature of consumer discretionary spending on a global scale.
Investors in the iShares Global Consumer Discretionary ETF benefit from a broad exposure to the global consumer discretionary market, which encompasses companies across developed and emerging markets. By investing in this ETF, stakeholders can gain access to key players in sectors such as retail, entertainment, and consumer services, which typically experience fluctuations based on economic cycles and consumer confidence. The ETF offers a diversified approach to investing in the consumer discretionary sector, mitigating the risks associated with investing in individual companies or regions.
The fund’s strategic allocation in line with the underlying index’s criteria ensures that it captures the overall performance of the consumer discretionary sector while adhering to the capping rules set by S&P Dow Jones Indices. This approach aims to deliver investment returns that mirror the global trends and dynamics within the consumer discretionary industry, providing investors with a comprehensive and diversified exposure to one of the most dynamic sectors of the global economy.
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