BlackRock Caps Mega-Stocks at 3% with New ETF
From Yahoo Finance: 2025-04-16 17:00:00
BlackRock, Inc launched the iShares S&P 500 3% Capped ETF (TOPC) to address concerns about mega-cap stock dominance in the US equity market. The fund aims for balanced exposure to S&P 500 companies, preventing any single stock from overpowering performance.
TOPC tracks the S&P 500 3% Capped Index, capping individual company weights at 3% during quarterly rebalancing. The fund’s expense ratio is set at 0.15%, but a fee waiver reduces it to 0.09% through April 2026.
The new ETF reduces technology giant exposure compared to traditional S&P 500 ETFs, with information technology exposure dropping from 32% to 23%. It also decreases mega-cap concentration, creating a more balanced sector allocation, particularly in financial services.
TOPC is part of BlackRock’s “iShares Build” lineup, offering portfolio building blocks for managing US market-cap exposure. The fund launched with $5 million in assets and 500 holdings as of April 15, according to iShares.