The iShares Transportation Average ETF (IYT) is designed to track the performance of the transportation sector in the U.S. equity market. To achieve this, the fund typically invests at least 80% of its assets in the same securities that make up its underlying index, or in investments that closely mimic those securities.
The underlying index, managed by S&P Dow Jones Indices LLC, provides a snapshot of the transportation sector's performance. This includes companies involved in various aspects of transportation, such as airlines, railroads, trucking, and logistics.
As a non-diversified fund, IYT may focus its investments on a smaller number of securities, which can result in higher stakes in individual companies. This approach allows the fund to closely track the performance of the transportation sector, but it may also increase risk.
The fund is managed by BlackRock, a leading global investment manager, and is listed on the BATS exchange under the ticker symbol IYT. For more information, investors can visit the iShares website at http://www.ishares.com.
The fund is domiciled in the United States, which means it is subject to U.S. regulations and laws. This can provide a level of transparency and investor protection for those invested in the fund.