The increasing prominence of mega-cap stocks in recent years underscores the critical need for investors to modernize the way they capture growth of some of the world’s most well-known companies. Today, BlackRock announced the launch of three new ETFs to empower investors with simple solutions to express more granular views on the largest companies listed in the U.S.
The new ETFs are part of the iShares Build ETFs – a new toolkit to provide investors with portfolio building blocks to customize their U.S. market cap exposure with the convenience and flexibility of an ETF. The iShares Top 20 U.S. Stocks ETF (NYSE:TOPT), iShares Nasdaq Top 30 Stocks ETF (Nasdaq:QTOP), and iShares Nasdaq-100 ex-Top 30 ETF (Nasdaq:QNXT) – join established ETFs, iShares MSCI USA Equal Weighted ETF (EUSA) and iShares S&P 100 ETF (OEF), to broaden easy access to manage U.S. equity exposure.
“The iShares Build ETFs help investors harness the power of growth and innovation within the largest U.S. companies in a precise way,” said Rachel Aguirre, U.S. Head of iShares Products at BlackRock. “Now is the time for investors to rethink their market exposure and how they can aim to capitalize on the growth potential of these companies.”
“The beauty of these ETFs is that they can be used by investors looking for more targeted exposure to mega caps or those looking to broaden their exposure to large, well-known companies,” added Rachel Aguirre.
The U.S. capital market has undergone significant transformation in the past two decades, but there are limited new solutions to help investors better manage their market cap exposure. In 2000, the entire U.S. stock market was valued at $15 trillion. Fast forward to today, the largest eight companies alone are worth $15 trillion. More importantly, the top 20 largest companies in the S&P 500 Index have contributed more than two-thirds (68%) of the Index’s return over the past three years, demonstrating their ability to drive outsized stock market returns.1
The ability to easily access or customize U.S. market cap exposure in an ETF is pertinent to various investor types – including first-time investors, model builders, institutional investors, and especially financial advisors, as their portfolios are meaningfully underweight mega-cap stocks.2
“iShares Build ETFs extend BlackRock’s effort to democratize easy access to investment opportunities,” said Jagdeep Singh Bachher, the University of California’s Chief Investment Officer. “At the University of California, we believe in empowering individual investors, particularly young investors, with straight-forward tools to gain exposure to innovative companies that are poised to grow. That’s why we are pleased to be an early investor in QTOP, which allows investors big and small to easily add growth companies to their portfolios.”
Fund Name | Ticker | Expense
| Holdings |
iShares Top 20 U.S. Stocks ETF | 0.20% | Top 20 largest U.S. companies in the S&P 500 across sectors such as technology, consumer goods, communication, healthcare and financial services sectors | |
iShares Nasdaq Top 30 Stocks ETF | 0.20% | 30 of the largest and most innovative non-financial companies including mega cap stocks in the technology sector | |
iShares Nasdaq-100 ex Top 30 ETF | 0.20% | One-ticker solution to the next potential industry leaders across sectors such as technology, healthcare, consumer goods, and industrial sectors |
About BlackRock
BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate | Twitter: @blackrock | LinkedIn: www.linkedin.com/company/blackrock
About iShares
iShares unlocks opportunity across markets to meet the evolving needs of investors. With more than twenty years of experience, a global line-up of 1,400+ exchange traded funds (ETFs) and $4.2 trillion in assets under management as of September 30, 2024, iShares continues to drive progress for the financial industry. iShares funds are powered by the expert portfolio and risk management of BlackRock.
Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses which may be obtained by visiting www.iShares.com or www.blackrock.com. Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal.
Funds that concentrate investments in specific industries, sectors, markets or asset classes may underperform or be more volatile than other industries, sectors, markets or asset classes and the general securities market.
Index performance is for illustrative purposes only. Index performance does not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results. Index performance does not represent actual Fund performance. For actual fund performance, please visit www.iShares.com or www.blackrock.com.
This information should not be relied upon as research, investment advice, or a recommendation regarding any products, strategies, or any security in particular. This material is strictly for illustrative, educational, or informational purposes and is subject to change.
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1 FactSet, as of 9/20/2024. Past performance is no guarantee of future results.
2 BlackRock, as of 8/31/2024. Based on a BlackRock study of 23,000 model portfolios. Morningstar, BlackRock, Aladdin as of 7/31/24. For illustrative purposes only. Analysis based on 22,983 portfolios. These attributes are calculated for each portfolio as a weighted average of the underlying holdings. The portfolio-level metrics are then averaged in each risk profile cohort to arrive at the numbers presented. Allocations are calculated using only models that contain at least one product from that category. “Broad Equity Benchmark” is represented by a hypothetical blended benchmark of 75% S&P 1500 TR index and 25% MSCI ACWI ex USA IMI NR index.
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