IDU
iShares U.S. Utilities ETF
📎 Investment Objective
The iShares U.S. Utilities ETF (IDU) seeks to track the investment results of an index composed of U.S. equities in the utilities sector.
Overview
ETF tracking iShares U.S. Utilities ETF
Performance
Price Chart
Investment Summary
📎 Investment Objective
The iShares U.S. Utilities ETF (IDU) seeks to track the investment results of an index composed of U.S. equities in the utilities sector.
🎯 Investment Strategy
The fund invests in a representative sample of securities included in the Dow Jones U.S. Utilities Index, which measures the performance of the utilities sector of the U.S. equity market. The fund attempts to replicate the index by investing in the same securities in the same proportions.
✨ Key Features
- Provides exposure to the U.S. utilities sector, which includes companies involved in the generation, transmission, and distribution of electricity, gas, water, and other utility services.
- Diversified portfolio of utilities stocks, with the largest holdings typically including major electric, gas, and water utility companies.
- Low expense ratio of 0.00%, making it a cost-effective way to gain exposure to the utilities sector.
- Passively managed to track the performance of the underlying index
⚠️ Primary Risks
- Sector concentration risk, as the fund is focused solely on the utilities sector and may be more volatile than a more diversified fund.
- Regulatory risk, as utilities companies are subject to extensive government regulation that can impact their operations and profitability.
- Interest rate risk, as utilities stocks may be sensitive to changes in interest rates.
- Market risk, as the value of the fund's holdings can fluctuate with overall market conditions.
👤 Best For
The iShares U.S. Utilities ETF may be suitable for investors seeking exposure to the utilities sector as part of a diversified portfolio. It may be particularly appealing to investors with a relatively low risk tolerance who are looking for a cost-effective way to gain exposure to this defensive sector.
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