BlackRock has expanded its US equity toolkit with an ETF capturing the largest companies within the S&P 500 index.
The iShares S&P 500 Top 20 UCITS ETF (SP20) will list on the London Stock Exchange with a total expense ratio (TER) of 0.20%.
SP20 tracks the S&P 500 Top 20 index comprised of the largest constituents of the S&P 500 index, providing more granular exposure to the largest US equities.
BlackRock noted the top 20 constituents have contributed more than 68% of the popular index’s return over the past three years.
SP20’s benchmark has outperformed the S&P 500 by 1.8% per year on a net total return basis over the past decade.
The top 20 index’s top constituent claims a considerable 15.6% weighting, while 76.6% is allocated to the top 10 holdings.
SP20’s sector make-up is equally concentrated, with 47.8% being awarded to the information technology sector.
Brett Pybus (pictured), head of iShares EMEA product strategy, commented: “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.”
SP20’s arrival follows the launch of the iShares Russell 2000 Swap UCITS ETF (RU2K) and iShares Nasdaq 100 Swap UCITS ETF (N100) last month.
It also comes as other issuers expand routes for access amid a dominant year for US equities, with JP Morgan Asset Management debuting the JPMorgan US Equity Premium Income Active UCITS ETF (JEPI) and the JPMorgan Nasdaq Equity Premium Income Active UCITS ETF (JEPQ) last week.
