The iShares Core S&P Total U.S. Stock Market ETF (NYSE ARCA:ITOT) tracks a comprehensive index that covers virtually the entire U.S. stock market. This index includes all common equities listed on major exchanges such as the New York Stock Exchange (NYSE), NASDAQ, and Cboe, which are among the largest and most widely followed stock exchanges in the world.
The fund's investment strategy is designed to provide broad diversification by investing in a wide range of U.S. stocks. It typically allocates at least 80% of its assets to the component securities of its underlying index, which means it holds a representative sample of the U.S. stock market. This approach allows investors to gain exposure to various sectors, industries, and market capitalizations, spreading risk and increasing potential for long-term growth.
In addition to its equity holdings, the fund may also invest up to 20% of its assets in other financial instruments, such as futures, options, and swap contracts, as well as cash and cash equivalents. This flexibility enables the fund to manage risk, adjust to market conditions, and maintain liquidity.
As a U.S.-domiciled fund, the iShares Core S&P Total U.S. Stock Market ETF is subject to the regulatory framework and oversight of the Securities and Exchange Commission (SEC). Investors can access more information about the fund on the iShares website, which provides detailed information on its investment objectives, strategies, and performance.