BlackRock Bring First U.S. Equity Exposure with 3%-Capped Weighted ETF to Europe

BlackRock announces the launch of the iShares S&P 500 3% Capped UCITS ETF (SP3C), providing investors balanced exposure to the 500 largest U.S. companies with greater issuer and sector diversification.

As the first 3%-capped weighted ETF in Europe, SP3C tracks the investment results of the S&P 500 3% Capped Index, which is composed of the S&P 500 companies such that no company has a weight over 3% of the index as of each quarterly rebalancing. Excess weights are re-distributed to the remaining holdings based on their respective market capitalisation to mirror the fundamental characteristics of a market-cap weighted index.

Manuela Sperandeo, Head of Europe & Middle East iShares Product at BlackRock said, “SP3C introduces a timely innovation to help European investors customise their core U.S. equity exposure. Combining the benefits of greater stock and sector diversification, SP3C aims to equip investors with a simple toolkit to navigate today’s equity market.”

SP3C accompanies the iShares S&P 500 Top 20 UCITS ETF and the iShares Nasdaq 100 Top 30 UCITS ETF and iShares Nasdaq 100 ex-Top 30 UCITS ETF launched this year. With the addition of these funds, BlackRock is providing investors with the tools they need to take a more granular approach to how they allocate to U.S. equities, especially given the concentration of the U.S. within global equity indices.

These products give investors options to access performance across US companies and sectors in a differentiated manner and to express their own market views.