BlackRock’s iShares has launched a new exchange-traded fund (ETF) called the iShares Top 20 U.S. Stocks ETF (TOPT) to appeal to investors looking to diversify beyond the so-called “Magnificent Seven” stocks. The ETF, which debuted this month, is made up of the 20 largest U.S. stocks by market capitalization, offering a broader and more diversified investment option.
Rachel Aguirre, BlackRock’s head of U.S. iShares product, stated that the ETF aims to provide investors with an easy and accessible way to tap into the innovation of mega-cap companies, whether in the tech-heavy Nasdaq space or within the S&P 500.
The Magnificent Seven, which includes Apple, Amazon, Meta, Alphabet, Microsoft, Nvidia, and Tesla, has faced some volatility, sliding more than 3.5% as a group on Thursday and losing around $615 billion in market cap. Despite this, the group is still up about 43% year-to-date, while the S&P 500 is up around 20%.
Aguirre noted that there are split views on investing in mega-cap companies, with some investors believing that the big will get bigger and winners will continue to win, while others are concerned about their high valuations. The iShares Top 20 U.S. Stocks ETF is down 2% since its launch on October 23.
[source](https://www.cnbc.com/2024/10/31/megacap-tech-gets-new-blackrock-etf.html)
