BlackRock Debuts S 500 Top 20 ETF in Europe
In This Article:
BlackRock has expanded its U.S. equity toolkit into Europe 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 U.S. 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.
BlackRock Expands iShares SP20 ETF to Europe
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, 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 European arrival follows the regional launch of the iShares Russell 2000 Swap UCITS ETF (RU2K) and iShares Nasdaq 100 Swap UCITS ETF (N100) last month. BlackRock has also made significant moves in the U.S. by recently unveiling a suite of four new iShares iBonds ladder ETFs, which offer exposure to Treasury bonds, Treasury Inflation-Protected Securities, corporate bonds, and high-yield bonds.
It also comes as other issuers expand routes for access amid a dominant year for U.S. equities, with JP Morgan Asset Management debuting the JPMorgan Equity Premium Income Active UCITS ETF (JEPI) and the JPMorgan Nasdaq Equity Premium Income Active UCITS ETF (JEPQ) last week.
This article was originally published on our sister site, etfstream.com.