iShares MSCI USA Momentum Factor ETF (0I86)

Overview

The provided description outlines an investment fund that is designed to track the performance of an underlying index, which is based on stocks showing higher momentum characteristics compared to those in the traditional market capitalization-weighted MSCI USA Index. This approach suggests an investment strategy focused on capitalizing on the momentum of certain stocks, reflecting an active management style aimed at outperforming the general market through the selection of securities that exhibit stronger performance trends. The fund commits to investing at least 80% of its assets in the securities that are part of its underlying index or in investments that mirror the economic characteristics of those securities, indicating a significant adherence to its investment thesis while allowing for a degree of flexibility in portfolio management.

Products and Services

• Component Securities Investment -

  The fund invests primarily in the securities that constitute its underlying index. This is a core service offering, leveraging the economic characteristics of these securities to aim for returns that are reflective of the underlying index's performance. The emphasis on investing a large portion of its assets in these securities aligns with the fund's strategy to mirror the momentum-based performance of its chosen index.

• Momentum-based Strategy -

  A distinctive characteristic of the fund's investment approach is the focus on stocks exhibiting higher momentum compared to those in the MSCI USA Index. This involves selecting stocks that have shown a tendency to increase in price more significantly than others within the parent index. It's a strategy aimed at investors seeking to capitalize on trends, with the fund's performance heavily dependent on the ability to accurately identify and invest in high-momentum stocks.