BlackRock introduces an ETF that goes beyond the 'Magnificent Seven' index.

BlackRock's iShares is targeting investors seeking to expand their investment portfolio beyond the traditional "Magnificent Seven."

The iShares Top 20 U.S. Stocks ETF (TOPT) was launched this month, featuring the 20 largest U.S. stocks by market capitalization, not just the Magnificent Seven.

According to Rachel Aguirre of BlackRock, iShares build ETFs are designed to provide investors with a set of easy-to-use solutions for capturing the growth of some of the largest U.S. equity market companies, while also offering a broader and more diversified approach.

Aguirre, the head of U.S. iShares product, stated that the ETF's objective is to provide an effortless and convenient way to access the innovation of megacaps, whether in the tech-dominated sector or the broader S&P 500 index.

Aguirre claims that the ETF offers a solution for investors concerned about the dominance of the Magnificent Seven stocks in the S&P 500.

On Thursday, the Magnificent Seven experienced a collective loss of approximately $615 billion in market cap, which is equivalent to the size of the entire US economy.

The Magnificent Seven has risen by 43% year-to-date, while the S&P 500 has increased by approximately 20%.

"It is crucial for clients and investors to be aware that there are differing opinions on this issue. While some investors believe that the large companies will continue to dominate, others argue that it is a risky time to invest in mega-cap companies due to their high valuations."

The iShares Top 20 U.S. Stocks ETF has experienced a 2% decline since its October 23rd launch.