BlackRock’s iShares is trying to attract investors looking to diversify beyond the so-called “Big Seven.”
The firm launched the iShares Top 20 US Stocks ETF (TOPT) this month. Not only does it have the Big Seven—— apple, Amazon, Yuan, letter, Microsoft, NVIDIA and Tesla. It consists of the 20 largest U.S. stocks by market capitalization.
“iShares established the ETF to provide investors with a toolkit of simple solutions that allow them to capture the growth of some of the largest companies in the U.S. stock market today, but to do so on a broader, broader scale. BlackRock’s Rachel Aguirre told CNBC’s “ETF Edge” on Monday.
Aguirre, the company’s head of U.S. iShares product, noted that the ETF’s mission is to provide a simple and easy way to take advantage of innovation in large-cap stocks — “whether it’s in a technology-focused space.” Nasdaq space, or more broadly, within the S&P (500) Index.
Aguirre said the ETF provides a way for investors concerned about the concentration of the seven largest stocks in the S&P 500.
On Thursday, the Big Seven fell more than 3.5% as a whole, losing about $615 billion in market value. This is equivalent to JPMorgan Chase.
However, the “Seven Heroes” are still up about 43% year to date, while S&P 500 Index increased by about 20%
“It’s important for customers and investors to remember that there are divisions on this topic. Many investors believe that big companies will get bigger (and) winners will continue to win,” Aguirre said. “There’s another side to this argument. Many investors believe it’s actually a very concerning time to continue to invest in … large-cap companies because of their high valuations.”
The iShares Top 20 US Stocks ETF has fallen 2% since its launch on October 23.
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