ISCB Profile
The iShares Morningstar Small-Cap ETF is designed to offer investors targeted exposure to small-capitalization stocks that exhibit both growth and value characteristics. Managed by BlackRock, Inc., the fund invests at least 80% of its assets in securities that are part of its underlying index, or in investments with similar economic attributes. This approach ensures that the ETF closely tracks the performance of the index it aims to replicate.
The underlying index, provided by Morningstar, Inc., focuses on small-cap companies that demonstrate a blend of growth and value traits. The index is constructed using Morningstars proprietary methodology, which identifies stocks that exhibit robust growth potential and attractive valuation metrics. By capturing these dual characteristics, the index aims to represent a broad spectrum of small-cap companies that offer both promising growth prospects and sound value opportunities.
The iShares Morningstar Small-Cap ETF targets stocks from smaller companies, typically characterized by lower market capitalizations compared to large-cap and mid-cap stocks. These small-cap companies are often in the early stages of growth, potentially offering higher returns but also presenting increased volatility and risk. The fund's dual focus on growth and value allows investors to benefit from companies with strong potential for capital appreciation while also emphasizing attractive valuations.
Overall, the iShares Morningstar Small-Cap ETF leverages BlackRocks expertise and Morningstars rigorous index methodology to provide a sophisticated investment vehicle for those interested in small-cap equities. By combining growth and value characteristics, the fund aims to deliver balanced exposure to emerging opportunities within the small-cap segment, catering to investors seeking to diversify their portfolios with high-potential, smaller companies.
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