BlackRock has launched the iShares S&P 500 Top 20 UCITS exchange-traded fund to ‘expand granular access to US companies.’
The ETF will offer exposure to the 20 largest S&P 500 stocks, in what the firm said is an effort to provide European investors with a tool to better manage their market-cap exposure.
The ongoing fee is 0.2% and the ticker is SP20.
BlackRock said options available in this area have not kept up with how the market has developed, noting that in 2000 the entire US stockmarket was valued at $15trn, whereas now this is the value of the top eight companies only.
See also: BlackRock Sustainable American Income Trust changes name ahead of SDR
More importantly in the firm’s view, the top 20 largest companies in the S&P 500 have contributed more than two-thirds (68%) of the index’s return over the past three years.
BlackRock added the ability to easily access or customise US market-cap exposure in an ETF is required by various types of investor, including first-time investors, portfolio builders, institutional investors, and financial advisers.
See also: Invesco launches defence, cybersecurity and AI ETFs
Brett Pybus, head of iShares EMEA product strategy, said: “Now is the time for investors to rethink their market exposure.
“With this ETF, European investors are now able harness the power of growth and innovation within the largest US companies in a targeted way. The performance dispersion within the S&P 500 has created a need for precise exposure to US equities.”
This article was first seen in our sister publication, PA Adviser
