The iShares Top 20 U.S. Stocks ETF (TOPT) has caught the attention of investors due to its performance in comparison to the broader SPDR S&P 500 Trust ETF (SPY). The top 20 holdings of TOPT have been driving returns in the market. TOPT has outperformed SPY over multiple time frames so far.

By focusing on the top 20 holdings, investors can track why TOPT is moving as it is. The simplicity and edge in knowing exactly what you own with TOPT is a rare advantage for traders in the current market environment. The top holdings of TOPT have taken it higher on a percentage basis compared to SPY.

TOPT offers options trading, providing a variety of possibilities for traders and investors. An option strategy like a protective put purchase can help mitigate risk in the current market conditions. Despite low trading volume, TOPT’s underlying stocks are liquid, allowing for reasonable spreads in trading.

Investing in TOPT opens up a diverse set of applications, from tracking stocks to hedging against market risks. This highly concentrated portfolio of top U.S. stocks offers a unique approach for investors looking to diversify their portfolios beyond the S&P 500.

Read more at Yahoo Finance: If You Really Want to Diversify, Skip the S&P 500 and Trade TOPT Instead