iShares Expanded Tech-Software Sector ETF (ISQ4)

Overview

The company is an investment entity that concentrates its investments primarily in the component securities of its designated index, which focuses on the U.S. software industry along with select companies from the interactive home entertainment and interactive media and services sub-industries both in the U.S. and Canada. The fund is committed to investing at least 80% of its assets in the securities that comprise its underlying index or in investments that closely mimic the economic characteristics of these component securities. This strategy aims to measure and capture the performance of leading companies within the specified sectors. However, it is notable that the fund operates with a non-diversified status, meaning it may invest more heavily in fewer securities, thus potentially subjecting investors to greater risks and volatility compared to diversified funds.

Products and Services

• Component Securities Investment
  

  The fund invests a minimum of 80% of its assets in the securities that form its underlying index. This approach is designed to closely replicate the economic characteristics and performance of these securities, providing investors with exposure to leading companies in the software, interactive home entertainment, and interactive media and services industries across the U.S. and Canada.

• Economic Characteristics Alignment
  

  In addition to direct investments in component securities, the fund also allocates assets to investments that exhibit substantially identical economic characteristics to those of the underlying index's securities. This strategy ensures that the fund's portfolio mirrors the performance and characteristics of its specified sectors, aiming for consistency and alignment with its investment objectives.

• Focus on Software and Interactive Entertainment
  

  The underlying index targets the performance of stocks from the software industry as well as selected companies within the interactive home entertainment and interactive media and services sub-industries. This specialized focus allows the fund to capture growth and innovation within key sectors of the technology and digital entertainment markets in North America.

• Non-Diversified Fund Structure
  

  As a non-diversified fund, this investment vehicle might allocate its assets in larger proportions to a smaller number of securities. While this can lead to higher returns if those securities perform well, it also means the fund is more exposed to the risk of significant losses from the underperformance of any single investment. This structure demands investors to consider their risk tolerance and investment objectives closely.