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Should iShares Top 20 U.S. Stocks ETF (TOPT) Be on Your Investing Radar?
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Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the iShares Top 20 U.S. Stocks ETF (TOPT - Free Report) is a passively managed exchange traded fund launched on October 23, 2024.
The fund is sponsored by Blackrock. It has amassed assets over $655.60 million, making it one of the average sized ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Further, growth stocks have a higher level of volatility associated with them. Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.2%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.35%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector -- about 46.1% of the portfolio. Telecom and Financials round out the top three.
Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 16.12% of total assets, followed by Apple Inc (AAPL) and Alphabet Inc Class A (GOOGL).
The top 10 holdings account for about 70.09% of total assets under management.
Performance and Risk
TOPT seeks to match the performance of the S&P 500 TOP 20 SELECT INDEX before fees and expenses. The S&P 500 Top 20 Select Index composes of the 20 largest U.S. companies by market capitalization within the S&P 500 Index.
The ETF has added roughly 9.28% so far this year and it's up approximately 32.49% in the last one year (as of 05/28/2026). In the past 52-week period, it has traded between $25.87 and $34.42.
The ETF has a beta of 1.09 and standard deviation of 19.56% for the trailing three-year period. With about 25 holdings, it has more concentrated exposure than peers.
Alternatives
iShares Top 20 U.S. Stocks ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, TOPT is an outstanding option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Growth Index Fund ETF Shares (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth Index Fund ETF Shares has $227.21 billion in assets, Invesco QQQ has $484.53 billion. VUG has an expense ratio of 0.03% and QQQ charges 0.18%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should iShares Top 20 U.S. Stocks ETF (TOPT) Be on Your Investing Radar?
Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the iShares Top 20 U.S. Stocks ETF (TOPT - Free Report) is a passively managed exchange traded fund launched on October 23, 2024.
The fund is sponsored by Blackrock. It has amassed assets over $655.60 million, making it one of the average sized ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Further, growth stocks have a higher level of volatility associated with them. Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.2%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.35%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector -- about 46.1% of the portfolio. Telecom and Financials round out the top three.
Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 16.12% of total assets, followed by Apple Inc (AAPL) and Alphabet Inc Class A (GOOGL).
The top 10 holdings account for about 70.09% of total assets under management.
Performance and Risk
TOPT seeks to match the performance of the S&P 500 TOP 20 SELECT INDEX before fees and expenses. The S&P 500 Top 20 Select Index composes of the 20 largest U.S. companies by market capitalization within the S&P 500 Index.
The ETF has added roughly 9.28% so far this year and it's up approximately 32.49% in the last one year (as of 05/28/2026). In the past 52-week period, it has traded between $25.87 and $34.42.
The ETF has a beta of 1.09 and standard deviation of 19.56% for the trailing three-year period. With about 25 holdings, it has more concentrated exposure than peers.
Alternatives
iShares Top 20 U.S. Stocks ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, TOPT is an outstanding option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Growth Index Fund ETF Shares (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth Index Fund ETF Shares has $227.21 billion in assets, Invesco QQQ has $484.53 billion. VUG has an expense ratio of 0.03% and QQQ charges 0.18%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.