BlackRock launches iShares US ‘pure revenue’ ETF

Aug 11th, 2017 | By | Category: Equities

BlackRock has launched the iShares Russell 1000 Pure US Revenue ETF (Nasdaq: AMCA), providing exposure to US large- and mid-cap equities which derive the vast majority of their revenue from within the United States. AMCA may provide an efficient means for investors to place a bet on the continuing strength of the US economy.

BlackRock launches iShares US ‘pure revenue’ ETF

The Russell 1000 Pure Domestic Exposure Index tracks the performance of stocks from within the Russell 1000 Index that derive at least 90% of their revenue from within the US.

The fund tracks the Russell 1000 Pure Domestic Exposure Index, consisting of those companies within the Russell 1000 Index that source at least 90% of their total revenue from the US. Eligible stocks are weighted by market capitalization with single holding and industry weighting caps of 5% and 33% respectively. As of the end of July the index had 428 constituents.

Compared to the Russell 1000, the index is massively underweight technology stocks (approximately 3% vs 22%) but overweight financials (24% vs 14%), consumer discretionary (16% vs 12%) and utilities (10% vs 3%).

The Russell 1000 Pure Domestic Exposure Index has lagged its parent index significantly year-to-date and over the past year with returns of 6.4% and 10.8% respectively, compared to 11.4% and 16.0% for the Russell 1000 Index over the same time periods (data as of 31 July 2017).

AMCA has a total expense ratio (TER) of 0.15%.

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