iShares MSCI USA Value Factor ETF (VLUE)

Overview

The fund described is an investment entity that primarily targets securities listed within the MSCI USA Index, a benchmark indicative of U.S. large- and mid-capitalization stocks. It pledges at least 80% of its assets to the securities that constitute the underlying index, ensuring exposure to a diverse portfolio reflective of the broader market movements within the United States. Additionally, up to 20% of the fund's assets may be allocated to derivatives such as futures, options, and swap contracts, alongside cash and cash equivalents, to potentially enhance returns or mitigate risk in varying market conditions. This strategic mix aims to replicate or closely follow the performance of its parent index, offering investors an efficient vehicle to gain broad market exposure.

Products and Services

• Component Securities Investment

  The fund invests primarily in the securities that make up the MSCI USA Index, leveraging a market capitalization-weighted strategy. This approach is designed to mirror the performance of U.S. large- and mid-cap stocks, providing investors with a scalable and diversified exposure to the American equity market.

• Derivative Instruments

  To enhance portfolio returns or manage risk, the fund may allocate up to 20% of its assets in derivatives such as futures, options, and swap contracts. These financial instruments are used strategically to hedge against market volatility or to gain from anticipated market movements without directly owning the underlying assets.

• Cash and Cash Equivalents

  Part of the fund's assets may also be held in cash or cash equivalents to manage liquidity needs or take advantage of immediate investment opportunities. This allocation ensures that the fund can promptly respond to market changes, redeem investor shares, or adjust its investment positions as necessary.