iShares S&P 100 ETF

OEF

Market cap $28.5B

I reiterate a hold rating on iShares S&P 100 ETF (OEF) due to waning momentum and valuation concerns. OEF's valuation is elevated, with a 23.8x P/E and a PEG of 2.3x, while earnings growth has slowed. Technical signals suggest weakening momentum, with key support at $327 and potential downside to $305–$310 if broken.

Small Cap stocks have failed to add alpha for many years. And the odds are more stacked against them than ever.

When you own the 100 largest companies in America, you're betting on a simple idea: big gets bigger.

Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the iShares S&P 100 ETF (OEF), a passively managed exchange traded fund launched on October 23, 2000.

It's all about large-cap growth again this year for investors. And investors are now looking beyond just S&P 500 index funds to cash in.

The popularity of ETFs continues to surge this year. And investors definitely have a type they prefer.

Inflation rose in August, but jobless claims rose, too, shaping Fed rate cut odds and boosting the appeal of large-cap blend ETFs like ITOT, EDOW and IVV.

Mega and large cap stocks continue to outperform, driven by robust earnings growth, especially in tech, financials, and healthcare sectors. OEF provides diversified access to the 100 largest S&P 500 companies, balancing mega cap upside with lower risk than more concentrated ETFs. OEF has consistently outperformed the S&P 500 over multiple timeframes, with strong price momentum, healthy liquidity, and a competitive expense ratio.

OEF offers concentrated exposure to the largest S&P 500 companies, with high tech weighting and elevated idiosyncratic risk versus broader market ETFs. Current valuation and sector concentration make OEF more vulnerable to pullbacks, especially in risk-off environments and amid waning market momentum. While OEF's long-term returns are similar to peers, it has underperformed SPY, questioning the benefit of its higher concentration.

Launched on October 23, 2000, the iShares S&P 100 ETF (OEF) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.