<p><strong>iShares</strong> are exchange-traded funds (ETFs) managed by BlackRock, a global investment management corporation. They aim to track the performance of specific market indices, offering investors a diversified and low-cost way to gain exposure to various asset classes.</p>

<h2>How It Works</h2>
<p>iShares ETFs work by collecting funds from investors and using them to purchase a basket of securities that mirrors a specific market index. The fund issues shares, which can be bought and sold on stock exchanges, representing a proportion of the fund's total assets. Here's a simplified breakdown:</p>
<ul>
  <li>Investors buy shares in an iShares ETF.</li>
  <li>The fund buys a diversified portfolio of securities that tracks the chosen index.</li>
  <li>Investors' returns are based on the performance of the underlying index, minus the fund's expense ratio.</li>
</ul>

<h2>Why It Matters</h2>
<p>iShares ETFs matter for several reasons:</p>
<ul>
  <li><strong>Diversification:</strong> iShares offer instant diversification, as they invest in a broad range of securities, reducing the risk of relying on a single investment.</li>
  <li><strong>Low Cost:</strong> iShares typically have lower expense ratios than actively managed mutual funds, making them an attractive option for cost-conscious investors.</li>
  <li><strong>Liquidity:</strong> iShares ETFs are traded on stock exchanges, providing investors with the liquidity to buy and sell shares throughout the trading day.</li>
</ul>
<p>For instance, the iShares Core S&P 500 ETF (IVV) provides investors with exposure to the broad U.S. equity market, tracking the performance of the S&P 500 Index. With an expense ratio of just 0.03%, it's a cost-effective way to gain diversified exposure to the U.S. equity market.</p>