COMT | iShares U.S. ETF Trust iShares GSCI Commodity Dynamic Roll Strategy ETF

COMT ISSUER

The COMT issuer, managed by BlackRock-advised Funds, aims to track the S&P GSCI Dynamic Roll (USD) Total Return Index, which includes a diversified portfolio of commodities futures contracts such as aluminum, Brent crude oil, cocoa, coffee, and various others. The fund utilizes a combination of exchange-traded commodity futures contracts, options, and swaps to gain exposure to commodity markets while also managing cash balances through a strategy involving short-term, investment-grade fixed-income securities. Employing a representative sampling indexing strategy, the fund seeks to mirror the performance of its underlying index while minimizing risks associated with active management. To comply with tax regulations, the fund invests a portion of its assets in a subsidiary focused solely on commodity-linked investments. With its concentration policy, the fund may hold a significant portion of its assets in equity securities of commodity-related companies and derivatives, particularly in the energy sector, ensuring a targeted exposure to commodities within regulatory limits.

COMT DIVIDEND

The COMT dividend is an essential aspect of the investment strategy employed by the BlackRock-advised Funds. As an investor in the COMT ETF, individuals may benefit from periodic dividend distributions. These dividends are derived from the income generated by the fund's investments in a diversified portfolio of commodity-linked investments, including futures contracts, options, and swaps, as well as fixed-income securities. The dividend distribution reflects the performance of the underlying assets held within the ETF, providing investors with potential income alongside capital appreciation. Additionally, the dividend payments may vary depending on market conditions, the performance of the underlying commodities, and the overall strategy of the fund manager. Overall, the COMT dividend serves as a source of income for investors seeking exposure to the commodities market through a diversified and professionally managed investment vehicle.

COMT TRACKING

The tracking of the COMT ETF, managed by BlackRock-advised Funds, is integral to its investment objective of mirroring the performance of the S&P GSCI Dynamic Roll (USD) Total Return Index. Through a combination of exchange-traded commodity futures contracts, options, swaps, and fixed-income securities, the fund seeks to closely replicate the returns of its underlying index. Utilizing a representative sampling indexing strategy, the fund invests in a diversified portfolio of securities and instruments that collectively mimic the investment profile of the index. By doing so, the fund aims to minimize tracking error and ensure that its performance closely tracks that of the underlying index over time. The tracking process involves periodic rebalancing and adjustments to maintain alignment with the index composition and weightings. Overall, the diligent tracking mechanism employed by the COMT ETF allows investors to gain exposure to commodity markets with transparency and consistency, reflecting the fund's commitment to delivering returns in line with its benchmark index.

COMT CORRELATION

The correlation of the COMT ETF, advised by BlackRock, is crucial for investors seeking to understand its relationship with various market factors and asset classes. Given its focus on commodities, the ETF's correlation may fluctuate in response to changes in commodity prices, global economic conditions, and inflationary pressures. Typically, COMT exhibits a positive correlation with commodity prices, as its performance is directly impacted by movements in underlying commodity futures contracts such as crude oil, metals, agricultural products, and others. However, its correlation with traditional asset classes like stocks and bonds may vary depending on market dynamics and investor sentiment. Investors often use COMT as a diversification tool to reduce correlation with equity and fixed-income investments, especially during periods of market volatility or inflationary concerns. Understanding the correlation of COMT with different asset classes is essential for constructing well-balanced investment portfolios and managing overall risk exposure effectively.

COMT SECTOR

The sector exposure of the COMT ETF, managed by BlackRock, is primarily concentrated in commodities and related industries. COMT offers investors exposure to a diverse array of sectors within the commodities market, including energy, agriculture, metals, and more. This broad sector allocation allows investors to participate in the performance of various commodity markets, each driven by unique supply and demand dynamics. Within the energy sector, investments may encompass crude oil, natural gas, and refined products, while agricultural commodities may include grains, softs, and livestock. Additionally, the ETF may hold positions in metals such as gold, silver, copper, and others. By providing exposure to multiple sectors within the commodities market, COMT aims to capture potential growth opportunities while diversifying risk across different industries and commodities. Overall, the sector allocation of COMT reflects its objective of offering comprehensive exposure to the commodities market landscape.

COMT EXPOSURE

The exposure provided by the COMT ETF, managed by BlackRock, offers investors a unique opportunity to gain comprehensive exposure to the commodities market. Through a combination of exchange-traded commodity futures contracts, options, swaps, and fixed-income securities, the fund seeks to capture the performance of a diversified portfolio of commodities. Investors can access exposure to a wide range of commodities, including energy, agriculture, metals, and more, thereby diversifying their investment portfolios and potentially mitigating risk. Additionally, the ETF's exposure extends beyond physical commodities to include derivative instruments, providing flexibility and liquidity in accessing commodity markets. By offering broad exposure to various sectors within the commodities market, COMT enables investors to capitalize on potential growth opportunities while managing risk effectively. Overall, the exposure provided by COMT reflects its commitment to delivering comprehensive access to the commodities asset class within a single investment vehicle.