What this ETF is trying to do

The ISHARES TOP 20 U.S. STOCKS ETF (TOPT) is designed to focus on a small group of large American companies. Instead of buying hundreds of different stocks, this ETF concentrates its investments in the top 20 companies in the U.S. market.

What the numbers show

The data shows that TOPT has experienced growth in its share price over the last year.

• Price Return: This measures only the change in the share price. The one-year price return was approximately 15.30%. The year-to-date (YTD) price return is approximately 13.67%.

• Total Return: This measures the share-price change plus any distributions paid out. The one-year total return was approximately 15.75%, and the YTD total return is approximately 14.00%.

To visualize the price change, an investor could look at the estimated price from roughly one year ago, which was $30.79, compared to the current price of $35.50.

Top Holdings

The ETF holds a total of 24 companies, though the list below shows the largest ones. Please note that holdings can change over time.

• NVIDIA CORP (16.95%)

• APPLE INC (14.25%)

• MICROSOFT CORP (11.51%)

• META PLATFORMS INC CLASS A (4.84%)

• BROADCOM INC (4.42%)

• MICRON TECHNOLOGY INC (4.36%)

• AMAZON.COM INC (4.35%)

• TESLA INC (4.07%)

• ADVANCED MICRO DEVICES INC (4.02%)

• BERKSHIRE HATHAWAY INC CLASS B (3.57%)

Income and distribution explanation

TOPT provides some income through distributions. The distribution yield is approximately 0.35%. This number describes the cash paid out relative to the ETF's price.

The fund usually pays distributions on a quarterly basis, with 4 payments recorded over the last 12 months. While some investors look for regular cash payments, it is important to remember that a distribution yield is not the same as total return.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

However, looking at price-based evidence, the fund has an erosion score of 100, which is labeled as "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag.

Pros

• Strong Price Growth: The ETF has shown positive price returns over the last year and year-to-date.

• Low Erosion Risk: Based on the supplied erosion score, there is no detected price erosion.

Cons

• Concentration: Because it only holds 20 stocks, the performance of the ETF is heavily tied to those specific companies.

• Lower Yield: The distribution yield is relatively low at 0.35%.

Beginner takeaway

TOPT is a concentrated ETF that tracks large U.S. companies. It has recently shown both share-price growth and total returns. While it provides some quarterly income, its main recent movement has been in its share price rather than through high distributions.