Blackrock is launching a trio of ETFs geared towards mega caps.
BlackRock (NYSE: BLK) stated on Thursday that it has launched three new listed investment trusts with the aim of helping investors diversifying risk with the largest USA stocks.
The world's largest asset management company said two of the ETFs are designed to offer exposure to the largest companies, while the other ETFs are adjusted to avoid them.
The new ETFs come at a time when investors are concerned about the heavy weighting of mega-cap technology stocks and their significant role in driving the current bullish market, which has seen a 2-year run on Wall Street.
According to BlackRock (BLK), the top 20 companies in the benchmark S&P 500 (SP500) have contributed 68% of the total index returns over the past three years.
Over the past few months, as inflation has moved in the right direction and the Fed has delivered the long-awaited rate cut, investor confidence to move away from mega-cap stocks to other corners of the market has improved, broadening the market's breadth.
"The beauty of these ETFs is that they can be used by investors looking for a more targeted exposure to mega caps, as well as investors who want to expand exposure to well-known companies," said Rachel Aguirre, head of iShares products at BlackRock (BLK) in the United States, in a statement.
The three ETFs are iShares Top 20 United States (USA). Stock ETF (NYSEARCA: TOPT), iShares Nasdaq Top 30 Stocks ETF (nasdaq: QTOP), and iShares Nasdaq-100 ex-Top 30 ETF (nasdaq: QNXT).
For more details on the funds, please refer below.
iShares USA Top 20 Stock ETF (TOPT)
Fund Objective: Invest in the top 20 largest US companies by market capitalization in the S&P 500 index.
Number of holdings: 20.
Top 3 holdings: Apple (AAPL), NVIDIA (NVDA), Microsoft (MSFT).
Expense: 0.20%.
iShares Nasdaq Top 30 Stock etf (QTOP)
Fund objective: Invest in 30 companies with the highest market capitalization in the Nasdaq 100 index.
Number of shares: 30.
Top 3 shareholdings: Apple (AAPL), Nvidia (NVDA), Microsoft (MSFT).
Expense: 0.20%.
iShares Nasdaq-100 Former Top 30 ETF (QNXT)
Fund objective: Invest in large corporations ranked 31st to 100th by market capitalization in the Nasdaq 100 index.
Number of shares: 30.
Top 3 holdings: Micron Technology (MU), Starbucks (SBUX), Gilead Sciences (GILD).
Expense: 0.20%.
BlackRock (BLK) stated that it utilized the venture arm of the University of California as an initial investor in the iShares Nasdaq Top 30 Stocks ETF (QTOP). UC Investments currently manage a portfolio of approximately $180 billion in assets.
These new ETFs were announced just two days after BlackRock (BLK) stated the launch of two new funds focusing on technology growth and artificial intelligence.
The world's largest asset management company said two of the ETFs are designed to offer exposure to the largest companies, while the other ETFs are adjusted to avoid them.
The new ETFs come at a time when investors are concerned about the heavy weighting of mega-cap technology stocks and their significant role in driving the current bullish market, which has seen a 2-year run on Wall Street.
According to BlackRock (BLK), the top 20 companies in the benchmark S&P 500 (SP500) have contributed 68% of the total index returns over the past three years.
Over the past few months, as inflation has moved in the right direction and the Fed has delivered the long-awaited rate cut, investor confidence to move away from mega-cap stocks to other corners of the market has improved, broadening the market's breadth.
"The beauty of these ETFs is that they can be used by investors looking for a more targeted exposure to mega caps, as well as investors who want to expand exposure to well-known companies," said Rachel Aguirre, head of iShares products at BlackRock (BLK) in the United States, in a statement.
The three ETFs are iShares Top 20 United States (USA). Stock ETF (NYSEARCA: TOPT), iShares Nasdaq Top 30 Stocks ETF (nasdaq: QTOP), and iShares Nasdaq-100 ex-Top 30 ETF (nasdaq: QNXT).
For more details on the funds, please refer below.
iShares USA Top 20 Stock ETF (TOPT)
Fund Objective: Invest in the top 20 largest US companies by market capitalization in the S&P 500 index.
Number of holdings: 20.
Top 3 holdings: Apple (AAPL), NVIDIA (NVDA), Microsoft (MSFT).
Expense: 0.20%.
iShares Nasdaq Top 30 Stock etf (QTOP)
Fund objective: Invest in 30 companies with the highest market capitalization in the Nasdaq 100 index.
Number of shares: 30.
Top 3 shareholdings: Apple (AAPL), Nvidia (NVDA), Microsoft (MSFT).
Expense: 0.20%.
iShares Nasdaq-100 Former Top 30 ETF (QNXT)
Fund objective: Invest in large corporations ranked 31st to 100th by market capitalization in the Nasdaq 100 index.
Number of shares: 30.
Top 3 holdings: Micron Technology (MU), Starbucks (SBUX), Gilead Sciences (GILD).
Expense: 0.20%.
BlackRock (BLK) stated that it utilized the venture arm of the University of California as an initial investor in the iShares Nasdaq Top 30 Stocks ETF (QTOP). UC Investments currently manage a portfolio of approximately $180 billion in assets.
These new ETFs were announced just two days after BlackRock (BLK) stated the launch of two new funds focusing on technology growth and artificial intelligence.
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