JXI Profile
The iShares Global Utilities ETF is designed to offer investors exposure to the global utilities sector by investing in a diversified portfolio of utility companies across various countries. The fund aims to replicate the performance of its underlying index by allocating at least 80% of its assets to the component securities of this index, as well as to investments with economic characteristics similar to these securities. This approach ensures that the fund closely tracks the performance of its benchmark, which represents a broad array of utilities firms worldwide.
The global utilities sector encompasses companies that provide essential services such as electricity, water, and natural gas. These companies are critical infrastructure providers and often exhibit stable revenue streams due to the essential nature of their services. The iShares Global Utilities ETF includes firms involved in electric power generation and distribution, water utilities, natural gas services, and other related sectors. This diversification within the utilities sector allows the fund to capture a broad spectrum of opportunities and risks associated with utility investments.
In addition to direct investments in the securities of the index, the fund may allocate up to 20% of its assets to various financial instruments, including futures, options, and swap contracts. This flexibility allows the ETF to manage liquidity and hedge against market fluctuations, thereby optimizing its investment strategy. Cash and cash equivalents are also used to maintain liquidity and manage short-term needs, ensuring the fund remains adaptable to changing market conditions.
The iShares Global Utilities ETF provides investors with a way to gain exposure to a global portfolio of utility companies while focusing on stable and essential services. By investing in a broad range of utility sectors and using financial instruments for risk management, the fund offers a balanced approach to capturing the performance of the global utilities market. This investment vehicle is suitable for those seeking to diversify their portfolios with stable, income-generating assets in the utility sector.
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