“Globalization has profoundly altered the exposure of U.S. companies to offshore revenues and that is apparent in the performance of U.S. equity portfolios. In turn, iShares AMCA aims to provide investors with greater control to overweight the stocks of U.S. companies that are less dependent on overseas returns and more insulated from overseas risk,” Martin Small, Head of U.S. iShares at BlackRock, said in a note.
AMCA’s sector weights include financials 24.1%, consumer discretionary 15.4%, utilities 10.5%, health care 10.4%, real estate 9.1%, telecom 7.3%, consumer staples 6.4%, industrials 6.3%, energy 5.4%, information technology 3.0% and materials 1.8%. In contrast, the benchmark Russell 1000 Index includes a hefty weight toward technology 22%.
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The new ETF’s top holdings include AT&T (NYSE: T) 3.7%, Bank of America (NYSE: BAC) 3.4% and Wells Fargo (NYSE: WFC) 3.3%. In comparison, the benchmark Russell 1000’s top holdings include Apple (NasdaqGS: AAPL), Microsoft (NasdaqGS: MSFT) and Facebook (NasdaqGS: FB).
Over the past few years, a number of technology focused mega-cap multinational U.S. companies have risen, like Apple, Google (NasdaqGS: GOOG) and Facebook, which have a large global footprint. Consequently, the welfare of the global economy plays a much larger role for these multinational companies.
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