BlackRock debuts ETF to capture S&P 500 minus the mega-caps

[BlackRock San Francisco Office]
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BlackRock (NYSE:BLK [https://seekingalpha.com/symbol/BLK]) launched Wednesday the iShares S&P 500 ex Top 100 ETF (XOEF [https://seekingalpha.com/symbol/XOEF]) to give investors exposure [https://seekingalpha.com/pr/20160374-blackrock-launches-industry-s-first-s-and-p-500-ex-top-100-etf-for-more-precise-u-s-large-cap] to large-cap U.S. stocks within the S&P 500 Index while excluding those in the S&P 100 Index.

The new fund comes as the rise of mega-cap stocks over the last 20 years has led to indices with increasingly concentrated weightings in the largest names and greater dispersion within U.S. equity large-cap performance, the asset manager said.

“Today’s market environment requires investors to be more intentional in managing mega-cap exposure within portfolios,” says Jay Jacobs, U.S. head of Equity ETFs at BlackRock. "XOEF provides investors a new lever for managing mega-cap concentration with greater precision.”

XOEF has a net expense ratio of 0.20%, in line with a slew of other iShares U.S. equity ETFs.

BlackRock's (NYSE:BLK [https://seekingalpha.com/symbol/BLK]) iShares business has a global pipeline of over 1,500 ETFs and $4.3T in assets under management as of March 31, 2025.

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