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iShares TOPT targets mega-cap performance in a concentrated portfolio
TOPT holds just the 20 largest S&P 500 constituents, and its top four companies account for about half of the ETF’s total portfolio weight.
Yahoo Finance highlights the iShares Top 20 U.S. Stocks ETF (TOPT), which is built to track market performance by focusing on the largest enterprise leaders in the U.S. market. The design concentrates exposure by isolating the top S&P 500 constituents, covering nearly half of the index’s total market capitalization.
According to the outlet, TOPT debuted less than two years ago and remains small relative to larger, more established peers such as the SPDR S&P 500 Trust ETF (SPY) and the Invesco QQQ ETF (QQQ). The article also notes that TOPT has underperformed that pair over the past 12 months.
The piece describes TOPT as resetting its holdings to the top 20 by S&P 500 weight at each quarterly index reconstitution period. It points out that even among mega caps, the ETF’s top four companies make up about 50% of its portfolio weight.
Valuation and sector concentration are central to the story, with Yahoo Finance citing a trailing 12-month earnings multiple of 34x for TOPT. The article also says the ETF is heavily tilted toward technology and that Communication Services plus Consumer Discretionary total roughly three-quarters of the portfolio weight.
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