iShares Top 20 U.S. Stocks ETF (TOPT)
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XMEX 
TOPT: A Lesser-Known S&P Top 20 ETF With A Strong Upside Potential
iShares Top 20 U.S. Stocks ETF offers exposure to the 20 greatest S&P 500 companies, with a low expense ratio and moderate risk. The top 20 S&P 500 companies contributed 60% to the index's returns over the last five years, making TOPT an attractive investment. The recent market selloff presents a buying opportunity in TOPT, supported by robust earnings growth and attractive valuations in key sectors.
TOPT: Unnecessary ETF That Charges You For Reduced Diversification
The TOPT ETF focuses exclusively on the top-20 U.S. companies by market cap, but it doesn't seem to offer much tangible benefit. The strategy used by this fund could result in regrettable removals of large-cap stocks that undergo short-term dips. TOPT's heavy weighting in a few stocks and sectors increases risk, and investors can easily replicate its strategy without the added costs.
Got Diversification? Access The 20 Biggest U.S. Stocks
The U.S. stock market has performed very well overall in the past five years. But nearly 38% of individual stocks are down in the same timeframe, with an average decline of 53.8%. Diversification is a key tool investors may use to manage the risk of owning the “wrong” stocks in a rising market. The iShares Top 20 U.S. Stocks ETF gives investors access to 20 of the biggest companies in the U.S. in a low-cost, tax-efficient wrapper, taking the guesswork out of picking individual stocks.
