From CNBC: 2024-10-31 19:13:43

BlackRock’s iShares introduced the iShares Top 20 U.S. Stocks ETF (TOPT) to attract investors looking to diversify beyond the Magnificent Seven, including Apple, Amazon, and Microsoft. The ETF holds the 20 largest U.S. stocks by market capitalization, offering a more diversified approach to capturing growth in the market.

Rachel Aguirre, head of U.S. iShares product at BlackRock, stated that the TOPT ETF provides a simple solution for investors to tap into the innovation of megacap companies in a broader and more diversified manner. It aims to address concerns about the concentration of the Magnificent Seven stocks in the S&P 500.

The Magnificent Seven stocks experienced a 3.5% decline, losing approximately $615 billion in market cap, equivalent to the size of JPMorgan Chase. Despite this, the group is still up 43% year-to-date, while the S&P 500 has risen around 20%.

Aguirre highlighted the differing views among investors regarding investing in mega-cap companies, with some believing in their continued success and others expressing concerns over their high valuations. The iShares Top 20 U.S. Stocks ETF has seen a 2% decrease since its launch on October 23.

Read more: Megacap tech gets new BlackRock ETF