SIZE Profile
The iShares MSCI USA Size Factor ETF is designed to provide investors with targeted exposure to U.S. equities that exhibit certain size characteristics, focusing on companies that reflect a specific size factor relative to the broader market. The fund aims to achieve this by investing at least 80% of its assets in the securities that make up the underlying index. This index is derived from the MSCI USA Index, a widely recognized benchmark that tracks the performance of large and mid-cap U.S. companies.
The underlying index incorporates a size factor strategy, which emphasizes stocks of particular sizes based on market capitalization. By investing in this index, the ETF seeks to capture the performance of U.S. companies that exhibit size characteristics identified by the MSCI USA Size Factor Index methodology. This methodology involves selecting companies from the broader MSCI USA Index based on criteria that define the size factor, aiming to provide investors with enhanced exposure to firms that fit specific size-related criteria.
In addition to its primary investments in the index's component securities, the fund may allocate up to 20% of its assets to a range of additional financial instruments. These include futures, options, and swap contracts, which are used to manage exposure and enhance tracking accuracy. The fund may also invest in cash, cash equivalents, and securities not included in the underlying index, provided they assist in achieving the fund’s investment objective and tracking the performance of the index.
By focusing on the size factor within the U.S. equity market, the iShares MSCI USA Size Factor ETF aims to offer investors a nuanced exposure to companies that meet specific size-related criteria. This investment approach allows for a strategic focus on particular market segments, leveraging the size factor to potentially enhance returns relative to the broader market. The fund's flexible investment strategy, including its use of derivative instruments and cash management, is designed to align with its objective of closely tracking the underlying index while adapting to market conditions.
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