iShares Build ETFs designed to optimize U.S. equity exposure.
The increasing influence of mega-cap stocks in the U.S. capital market signals the critical need for investors to review their equity exposure to pursue their portfolio goals.
BlackRock launched the industry’s first 3% capped weighted ETF in the U.S. – the iShares S&P 500 3% Capped ETF (NYSE:TOPC) – providing investors balanced exposure to the 500 largest U.S. companies with greater issuer and sector diversification.
“TOPC introduces a timely innovation to help investors build their core U.S. equity exposure,” said Elise Terry, Head of U.S. iShares at BlackRock. “Combining the potential benefits of greater sector diversification and comparable exposure to the broad market index, TOPC is another testament to our dedication to equipping investors with a simple toolkit to navigate today’s equity markets.”
The shape of the U.S. equity market has evolved dramatically compared to decades past. In 2000, the entire U.S. stock market was valued at $15 trillion.
Fast forward to today, the largest seven companies alone are worth more than $15 trillion2, which means that mega-cap stocks may have an outsized impact on broad market performance and volatility, calling for a considered approach to equity exposure.
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TOPC seeks to track the investment results of the S&P 500 3% Capped Index, which is composed of the S&P 500 companies capped such that no company has a weight over 3% of the Index as of each quarterly rebalancing. Excess weights are re-distributed to the remaining holdings based on their respective market capitalization to mirror the fundamental characteristics of a market-cap weighted index.
TOPC adds another affordable choice to the iShares Build ETFs – an equity toolkit that provides investors with portfolio building blocks to help manage U.S. market-cap exposure with the convenience and flexibility of an ETF. BlackRock manages more than $18 billion in assets across iShares Build ETFs3
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1 Source: S&P Global.
2 Source: FactSet, 12/31/2024.
3 Source: BlackRock, as of 4/2/2025.
4 BFA, the investment adviser to the Fund, has contractually agreed to waive a portion of its management fee such that the Fund’s total annual fund operating expenses after fee waiver will not exceed 0.09% through April 3, 2026.
About BlackRock
BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate | Twitter: @blackrock | LinkedIn: www.linkedin.com/company/blackrock
About iShares
iShares unlocks opportunity across markets to meet the evolving needs of investors. With more than twenty years of experience, a global line-up of 1500+ exchange traded funds (ETFs) and $4.3 trillion in assets under management as of March 31, 2025, iShares continues to drive progress for the financial industry. iShares funds are powered by the expert portfolio and risk management of BlackRock.
Source – BlackRock
