Get Total Market Exposure With the 'ITOT' ETF | ETF Trends

Investors can build their portfolios the hard way and choose individual equities that give them a nice mix of stocks that provide general exposure to the major indexes like the S&P 500. Or, they can opt to get total exposure in the simple form of an ETF wrapper like the iShares Core S&P Total U.S. Stock Market ETF (ITOT).

ITOT seeks to track the investment results of the S&P Total Market Index, which is comprised of the common equities included in the S&P 500® and the S&P Completion Index. The fund generally invests at least 90% of its assets in securities of the underlying index and in depositary receipts representing securities of the underlying index.

The fund may invest the remainder of its assets in certain futures, options and swap contracts, cash and cash equivalents, including shares of money market funds advised by BFA or its affiliates, as well as in securities not included in the underlying index.

ITOT gives investors:

  • The Nation’s First ETF Focused on Environmental Services: A fast-growing industry driven by rapid population increases and industrialization, as well as government-mandated waste regulations
  • A Comprehensive Portfolio: Includes companies involved in removal, recycling, remediation, and resource recovery of hazardous and solid waste

The technical chart of ITOT shows the markets are indeed riding high on news of a forthcoming COVID vaccine. Momentum is strong as the fund is above its 50- and 200-day moving average.

ITOT Chart

Is There Steam Left in Vaccine Rally?

The latest pre-Thanksgiving rally gave investors an early Christmas gift. The question now is whether there’s any steam left as investors continue to digest news on a COVID-19 vaccine.

At some point, actual implementation of a vaccine will need to occur. In the meantime, investors can hope to keep riding the wave of optimism.

Per a Markets Insider report, “Moncef Slaoui, the head of the White House’s Operation Warp Speed, said on Sunday some Americans would be able to receive vaccinations as soon as December 11, meaning that there could be a 70% immunization rate across the US by May.”

“A nascent rotation from technology stocks to value sectors in equity markets and an ongoing rally in industrial metals and oil suggest these asset classes are focused on the reflationary possibilities of a vaccine rollout, said Stephen Innes, chief global market strategist at Axi,” the article continued.

“An emerging risk for investors is an untimely withdrawal of support for the US’ real economy, just as social-mobility restrictions undermine activity for the second time this year,” said Innes.

For more news and information, visit the Equity ETF Channel.