iShares Nasdaq-100 ex Top 30 ETF

QNXT

Market cap $28.3M

BlackRock launched three ETFs based on Nasdaq-100, with QNXT focusing on the bottom 70 holdings, offering a unique investment approach. QNXT recently outperformed due to market sentiment around Big Tech, but I see this outperformance as temporary rather than the setting of a new trend. Despite lower risk, QNXT's advantage may diminish if the market re-rates the top tech stocks, making it a Hold recommendation.

Earnings season is in full swing, and five of the “Magnificent 7” are reporting quarterly results this week. Wall Street has been steadily raising the alarm on mega-cap concentration risks, and recent notes out from Goldman Sachs and Vanguard have cranked up the hazard level a notch.

“The shape of the U.S. equity market has undergone a massive change over just the last few years,” says BlackRock's Rachel Aguirre.

On Thursday, BlackRock amplified its selection of large-cap ETFs by launching the iShares Top 20 U.S. Stocks ETF (TOPT), the iShares Nasdaq Top 30 Stocks ETF (QTOP), and the iShares Nasdaq-100 ex Top 30 ETF (QNXT). TOPT is trading on the NYSE, while QTOP and QNXT are available on the Nasdaq.

NEW YORK--(BUSINESS WIRE)--The increasing prominence of mega-cap stocks in recent years underscores the critical need for investors to modernize the way they capture growth of some of the world's most well-known companies. Today, BlackRock announced the launch of three new ETFs to empower investors with simple solutions to express more granular views on the largest companies listed in the U.S. The new ETFs are part of the iShares Build ETFs – a new toolkit to provide investors with portfolio bu.