TOPC
iShares S&P 500 3% Capped ETF
📎 Investment Objective
The iShares S&P 500 3% Capped ETF seeks to track the performance of the S&P 500 Index, a widely recognized benchmark of large-cap U.S. equities, while limiting the weight of any single stock to no more than 3% of the portfolio.
Overview
ETF tracking iShares S&P 500 3% Capped ETF
Performance
Price Chart
Investment Summary
📎 Investment Objective
The iShares S&P 500 3% Capped ETF seeks to track the performance of the S&P 500 Index, a widely recognized benchmark of large-cap U.S. equities, while limiting the weight of any single stock to no more than 3% of the portfolio.
🎯 Investment Strategy
The ETF employs a passively managed, index-based approach, investing in the same securities that make up the S&P 500 Index in approximately the same proportions, subject to the 3% single-stock cap. This strategy aims to provide investors with broad exposure to the large-cap U.S. equity market.
✨ Key Features
- Tracks the S&P 500 Index, a leading benchmark of large-cap U.S. stocks
- Limits the weight of any single stock to 3% of the portfolio, reducing concentration risk
- Passively managed, index-based approach to provide cost-effective market exposure
- Broad diversification across large-cap U.S. equities
⚠️ Primary Risks
- Market risk: The value of the ETF's holdings may decline due to general market conditions or other factors
- Tracking error risk: The ETF may not perfectly track the performance of the underlying index
- Concentration risk: The 3% single-stock cap may not eliminate all concentration risk
- Liquidity risk: In certain market conditions, it may be difficult to buy or sell shares of the ETF
👤 Best For
The iShares S&P 500 3% Capped ETF may be suitable for investors seeking broad exposure to the large-cap U.S. equity market with reduced single-stock concentration risk. It can be a core holding in a diversified portfolio, particularly for long-term investors with a moderate risk tolerance.