The iShares Top 20 U.S. Stocks ETF (TOPT) is designed to capture market performance by isolating the largest enterprise leaders in the U.S. market. That covers nearly half the S&P 500 Index’s ($SPX) total market capitalization. But chances are you probably haven’t heard of this ETF.
Despite being part of the huge iShares lineup, TOPT, which debuted less than two years ago, is puny in size compared to the more established SPDR S&P 500 Trust ETF (SPY) and the Invesco QQQ ETF (QQQ). And while it has underperformed that pair over the past 12 months, TOPT is perhaps the best way an investor could bet on mega-cap stocks. Instead of spreading capital across hundreds of companies, TOPT strips out the mid-caps and smaller S&P 500 constituents to build a highly concentrated portfolio.
