Mega-Cap Stock Bet: TOPT's Unrivaled Balance Sheets Power Market Leadership

The iShares Top 20 U.S. Stocks ETF (TOPT) is an often-overlooked fund that captures market performance by isolating the largest enterprise leaders in the US.

This ETF, which debuted less than two years ago, holds nearly half of the S&P 500 Index's total market capitalization but has underperformed established funds like SPDR S&P 500 Trust ETF (SPY) and Invesco QQQ ETF (QQQ) over the past year.

TOPT strips out mid-caps and smaller S&P 500 constituents to build a highly concentrated portfolio, with the top four companies - Alphabet (GOOG), Alphabet (GOOGL), Nvidia (NVDA), and Apple (AAPL) - comprising 50% of its total portfolio.

The fund's sector allocation is also focused on technology, with communication services and consumer discretionary adding up to three-quarters of its total weight.