BlackRock has launched an ETF aimed at providing European investors with an opportunity to customise exposure to US large-cap companies. The iShares S&P 500 Top 20 Ucits ETF is designed to allow investors in Europe to focus on the top 20 largest companies in the US stock market.
Highlighting the prominence of mega-cap stocks has surged over the last two decades, the asset management firm cited that in 2000, the US stock market’s total valuation was $15 trillion, whereas today, the top eight companies alone are valued at that same figure. Notably, the largest 20 companies in the S&P 500 Index contributed 68% of the Index’s return over the past three years.
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With an expense ratio of 0.20%, the fund has holdings in the top 20 largest US companies across sectors such as technology, consumer goods, communication, healthcare and financial services sectors.
“Now is the time for investors to rethink their market exposure,” said Brett Pybus, head of iShares Emea product strategy at BlackRock. “With this ETF, European investors are now able to harness the power of growth and innovation within the largest U.S. companies in a targeted way. The performance dispersion within the S&P 500 has created a need for precise exposure to US equities.”
The ETF is designed for a range of investor profiles, including first-time investors, portfolio builders, institutional investors, and financial advisors, offering a flexible approach to market cap exposure in the US. According to the asset management firm, this targeted exposure allows investors to benefit from the growth and stability of established US market leaders while still maintaining control over portfolio composition.
By expanding access to the largest U.S. companies, BlackRock enables European investors to better manage their exposure and capitalize on the growth of some of the world’s most well-known corporations.
