BlackRock Launches Industry's First S&P 500 ex Top 100 ETF for More Precise U.S. Large-cap Exposure
MWN-AI** Summary
BlackRock recently launched the iShares S&P 500 ex Top 100 ETF (NYSE: XOEF), marking a significant advancement in its product offerings for investors seeking precise U.S. large-cap equity exposure. This innovative ETF focuses on large-cap stocks within the S&P 500, explicitly excluding those within the top 100, allowing investors to target segments of the largest U.S. companies with enhanced diversification.
With the noticeable concentration of wealth in mega-cap stocks, investors have faced challenges in managing their portfolios effectively. XOEF is designed to address this issue by providing a strategic way for investors, such as financial advisors and portfolio managers, to adjust their exposure to these dominant players while still participating in the broader U.S. equity market. According to Jay Jacobs, BlackRock's U.S. Head of Equity ETFs, this product allows investors to navigate the complexities of the current market environment with greater precision and intentionality.
The ETF complements existing offerings like the iShares S&P 100 ETF (OEF) and is part of BlackRock's broader iShares Build ETF toolkit, which includes a variety of funds aimed at providing distinct ways to manage equity exposure. The XOEF has an expense ratio of 0.20%, similar to other ETFs in its segment, including the iShares S&P 100 and iShares Nasdaq Top 30 Stocks ETFs.
BlackRock currently manages over $22 billion in its iShares Build ETFs, responding to the increasing demand for targeted investment products. This launch underscores BlackRock's commitment to innovation and its mission to facilitate financial well-being for a diverse range of investors. For more detailed insights, investors are encouraged to review the fund's prospectus to understand its investment objectives and risks fully.
MWN-AI** Analysis
BlackRock's recent launch of the S&P 500 ex Top 100 ETF (NYSE: XOEF) provides a strategic option for investors looking to achieve more precise large-cap exposure in the U.S. equity market. This product allows investors to navigate the complexities of a market increasingly dominated by mega-cap stocks—an environment that has heightened risks of concentration and volatility in portfolios.
The XOEF ETF specifically targets large-cap companies in the S&P 500 while excluding the largest 100, thereby offering a diversified alternative that mitigates the risk often associated with concentration in a few dominant players. Given that the top 20 stocks represent nearly half of the S&P 500's total market capitalization—according to recent data—this ETF enables investors to manage their exposure effectively.
Investors, including model builders and financial advisors, can leverage XOEF alongside existing products like the iShares S&P 100 ETF (OEF) to tailor their strategies. By combining ETFs that focus on distinct segments of large-cap stocks, portfolio managers can enhance diversification, potentially improving risk-adjusted returns.
With a net expense ratio of just 0.20%, XOEF remains competitively priced for cost-conscious investors. As BlackRock manages over $22 billion in assets across its iShares Build ETFs, there is a clear demand for these tailored investment vehicles.
In the current market environment, characterized by rising interest rates and inflationary pressures, maintaining portfolio balance is crucial. As such, investors should consider adding XOEF to their portfolios to reduce concentration risk and better position themselves for a more volatile market landscape. Overall, BlackRock's new ETF stands as a robust tool for those seeking nuanced exposure to U.S. large-cap equities without the weight of the mega-cap stocks.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Complements the iShares S&P 100 ETF (OEF) to adjust exposure to S&P 500 companies
Today, BlackRock launched the iShares S&P 500 ex Top 100 ETF ( NYSE:XOEF ) , expanding its iShares Build ETF toolkit, which enables investors to manage their U.S. equity exposure with precise building blocks. XOEF seeks to track the investment results of an index composed of the large-cap U.S. equities within the S&P 500 Index, excluding those in the S&P 100 Index.
The ETF offers investors a new way to target segments of the largest U.S. companies within the S&P 500 Index and to diversify their portfolios. Over the past two decades, the rise of mega-cap stocks has significantly reshaped the U.S. equity landscape, leading to indices with increasingly concentrated weightings in the largest names and greater dispersion within U.S. equity large-cap performance. 1
“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 is designed to complement existing mega-cap exposures, such as the iShares S&P 100 ETF (OEF), by offering targeted access to the remaining large-cap segment of the S&P 500 Index. This differentiated approach enables investors, including model builders and financial advisors, to take more selective positions and helps enhance diversification in portfolios.
BlackRock manages over $22 billion in assets across the iShares Build ETFs, reflecting growing investor demand for precision building blocks to manage equity exposure. 2
iShares Build ETF Line-up
Fund Name | Ticker | Net Expense Ratio |
iShares S&P 500 ex Top 100 ETF | 0.20% | |
iShares S&P 100 ETF | 0.20% | |
iShares Top 20 U.S. Stocks ETF | 0.20% | |
iShares Nasdaq Top 30 Stocks ETF | 0.20% | |
iShares Nasdaq-100 ex Top 30 ETF | 0.20% | |
iShares S&P 500 3% Capped ETF | 0.09% | Gross: 0.15% 3 | |
iShares MSCI USA Equal Weighted ETF | 0.09% |
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 1,500+ 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.
Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses which may be obtained by visiting www.iShares.com or www.blackrock.com . Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal.
Funds that concentrate investments in specific industries, sectors, markets or asset classes may underperform or be more volatile than other industries, sectors, markets or asset classes and the general securities market.
Diversification and asset allocation may not protect against market risk or loss of principal.
This information should not be relied upon as research, investment advice, or a recommendation regarding any products, strategies, or any security in particular. This material is strictly for illustrative, educational, or informational purposes and is subject to change.
The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by S&P Dow Jones Indices LLC, nor does this company make any representation regarding the advisability of investing in the Funds. BlackRock is not affiliated with S&P Dow Jones Indices LLC.
© 2025 BlackRock, Inc. or its affiliates. All Rights Reserved. BLACKROCK and iSHARES are trademarks of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
| _________________________ |
| 1 Morningstar, as of June 30, 2025. The top 20 stocks accounted for ~47% of the S&P 500. |
| 2 BlackRock, as of July 3, 2025. |
| 3 BlackRock Fund Advisors, the investment adviser to the Fund and an affiliate of BlackRock Investments, LLC, has contractually agreed to waive a portion of its management fees through April 03, 2026. Please see the Fund’s prospectus for additional details. |
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Media Contact
Joanna Yau
Joanna.yau@blackrock.com
646-856-7274
FAQ**
How does the introduction of the iShares S&P 500 ex Top 100 ETF (XOEF) complement existing products like the iShares S&P 500 3% Capped ETF (TOPC) in terms of managing mega-cap exposure in investor portfolios?
What are the main advantages for investors in using the iShares S&P 500 3% Capped ETF (TOPC) in conjunction with the new iShares S&P 500 ex Top 100 ETF (XOEF)?
Given that both the iShares S&P 500 ex Top 100 ETF (XOEF) and the iShares S&P 500 Capped ETF (TOPC) have a low expense ratio of 0.20%, how do you evaluate their cost-effectiveness for long-term investment strategies?
In what scenarios might investors prefer to use the iShares S&P 500 3% Capped ETF (TOPC) over the new iShares S&P 500 ex Top 100 ETF (XOEF) for portfolio diversification?
4. How do the expense ratios of the iShares S&P 500 ex Top 100 ETF (XOEF) and the iShares Top 20 U.S. Stocks ETF (TOPT) compare, and what impact could this have on long-term investment performance?
**MWN-AI FAQ is based on asking OpenAI questions about iShares Nasdaq-100 ex Top 30 ETF (NASDAQ: QNXT).
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