When we think about the US stock market, massive indices like the Nasdaq 100, S&P 500, and the Russell 2000 often come to mind. These are great if you’re seeking a broad, diverse ETF. But today, we’re focusing on a more targeted option: the iShares Top 20 U.S. Stocks ETF, which zeroes in on the 20 largest listed US companies.
Having made its debut only last month, this ETF sports a total expense ratio of a modest 0.2%. As you’d expect, it’s packed with tech companies and will distribute dividends quarterly, which will likely appeal to many investors.
iShares Top 20 U.S. Stocks ETF
Now, you might be wondering why this ETF stands out. Well, it’s perfect if you want to concentrate on the absolute giants of the industry, steering clear of the smaller stocks that typically populate broader indices. Plus, it’s a great choice if you’re looking for significant tech exposure alongside a smattering of other sectors.
For those of you who prefer an ETF that’s heavily focused on tech, you might want to check out the 1nvest ETF5IT*.
ETF Details:
- Name: iShares Top 20 U.S. Stocks ETF
- NYSE Code: TOPT
- Issuer: iShares
- Launch Date: 23 October 2024
- Expense Ratio: 0.2%
- Tax-Free Savings Eligibility: No
- Market Cap: US$59.7 million
- Dividend Yield: Not Applicable, but distributed quarterly
At Just One Lap, we are big proponents of passive investing through ETFs. Our weekly blog dives into local market ETFs, examining the factors you need to consider when picking the right one. If you’ve ever been curious about what sets one ETF apart from another, this is the place to find out. We outline the indices each ETF tracks, suggest the types of portfolios that could benefit from holding them, and discuss how various costs might impact your investments.
