The iShares Top 20 U.S. Stocks ETF seeks to track the investment results of an index comprised of the 20 largest U.S. companies by market capitalization within the S&P 500 index. TOPT is designed to help investors benefit from the potential growth of the biggest, and some of the most recognizable, companies in the U.S.

An index is a statistical measure that represents the value of a group of assets. It is often used to track the performance of a specific segment of the financial market. For example, the S&P 500 Index tracks the performance of 500 large companies listed on stock exchanges in the United States. Indices can be used for various purposes, such as benchmarking the performance of investment portfolios or creating index funds that aim to replicate the performance of the index.

Market capitalization refers to the total market value of a company's outstanding shares of stock. It is calculated by multiplying the current share price by the total number of outstanding shares. Market capitalization is often used to determine the size of a company and compare it with others. For instance, companies are typically categorized as large-cap, mid-cap, or small-cap based on their market capitalization. There are many factors that impact a company's market capitalization, with two significant factors being a company's current revenue and its expected revenue growth. "Mega cap" companies, companies with the largest market capitalization, are considered "mega cap" because of the market's belief that future revenue warrants the current share price.

The iShares Top 20 U.S. Stocks ETF was launched on 10/24/24 with the largest 20 companies in the S&P 500, based on market capitalization. The fund is dynamically rebalanced on a quarterly basis - the 3rd Friday of March, June, September, and December - to maintain exposure to the 20 largest companies on a rolling basis, though it may not reflect current rankings between rebalances.

The iShares Top 20 U.S. Stocks ETF provides investors with access to companies across a variety of sectors of the U.S. stock market. At launch on 10/24/24, the fund has exposure to communication services, consumer discretionary, consumer staples, financials, technology, healthcare, and energy.

TOPT seeks to provide investors with a simple way to access the strength of the 20 largest companies in the U.S. and empower their portfolio with:

• Exposure: TOPT holds some of the largest companies in the technology, consumer goods, communications, healthcare, and financial services sectors. Notable holdings include Apple, Amazon, Meta, Johnson & Johnson, and JP Morgan Chase.
• Access: Investors can gain access to these companies, which represents ~$25.5 trillion in market capitalization, which is almost as large as the U.S. economy (2023 GDP of $27T).²
• Scale: Collectively, the top 20 companies operate in more than 160 countries around the world.³
• Growth: Over the last 12 months, these companies have returned 45%, generated $623 billion of free cash flow, and seen revenue growth of ~4%, outpacing the growth of the U.S economy (2023 GDP growth of 2.5%).⁴
• Affordability: Investors can gain exposure to the strength of these companies through one share of TOPT, which could cost more than $7,000 to purchase individually.⁵

While TOPT and the iShares Core S&P 500 ETF (IVV) seek to track the performance of a group of companies with certain characteristics, they offer investors uniquely different opportunities.

• iShares Core S&P 500 ETF (IVV) seeks to track the entirety of the S&P 500 Index, which is comprised of the 500 largest U.S. stocks by market capitalization.
• iShares Top 20 U.S. Stocks ETF (TOPT) seeks to track a targeted subset of the S&P 500 index, which is comprised of the 20 largest U.S. stocks by market capitalization.

Investors can purchase shares of the iShares Top 20 U.S. Stocks ETF on traditional brokerage platforms — the same place investors can also purchase stocks, bonds, and other ETFs.