BlackRock Unveils Plans for Tech-Focused ETF Trio

BlackRock Inc., the world's largest asset manager, has filed separate proposals with the Securities and Exchange Commission for three new exchange-traded funds, each of which will focus on different facets of major equity indexes. 

The iShares Nasdaq Top 30 Stocks ETF aims to track an index of the 30 largest companies in the tech-heavy Nasdaq-100 Index. The iShares Top 20 U.S. Stocks ETF will follow an index of the 20 largest U.S. companies in the S&P 500 index.

The iShares Nasdaq-100 ex Top 30 ETF will track ranked 31st through 100 in the Nasdaq 100.

BlackRock submitted its filing with the SEC on Aug. 7. BlackRock declined to comment on the new ETFs.

BlackRock ETFs and Market Trends

The new offerings respond to recent market trends. Magnificent Seven tech giants, including Tesla, Apple, Meta, Nvidia, Alphabet, Amazon and Microsoft, have dominated market gains.

The proposed ETFs align with growing interest in tech-focused funds. Similar products have had large gains this year. The Roundhill Magnificent Seven ETF (MAGS), which tracks several of the companies in the Magnificent Seven, has over $603 million in assets under management. It is up 27% year-to-date.

However, it has faced recent challenges. The fund is down nearly 14% over the past month following a global sell-off hit U.S. markets last week. This downturn caused all three major indices to sink, affecting tech and consumer discretionary ETFs.

The Invesco S&P 500 Top 50 ETF (XLG), which tracks the 50 largest U.S. companies, and also includes the Magnificent Seven, has returned 17% year-to-date, despite a 7.4% drop in the past month. It has $4.9 billion in AUM. 

This performance highlights both the potential and volatility in the space BlackRock aims to enter with its new offerings.

A number of market observers have raised concerns about the influence of Magnificent Seven stocks and market volatility.