BlackRock’s iShares is taking steps to attract investors seeking to expand beyond the renowned ‘Magnificent Seven.’ The company introduced the iShares Top 20 U.S. Stocks ETF (TOPT) this month, a fund that doesn’t solely focus on the Magnificent Seven, namely Apple, Amazon, Meta, Alphabet, Microsoft, Nvidia, and Tesla. Instead, it consists of the 20 most significant U.S. stocks based on market capitalization.

Rachel Aguirre from BlackRock explained to CNBC’s “ETF Edge” that the motive behind the iShares ETFs is to offer investors simple tools to leverage the growth of some of the largest U.S. equity market firms. The goal is to do this in a broader and more diversified way. As the head of U.S. iShares product at BlackRock, Aguirre emphasized the ETF’s objective of providing an effortless and accessible method to invest in the innovation of megacaps. This can be within the technology-focused Nasdaq or the broader S&P 500.

Aguirre further elaborated that the ETF offers an option for investors apprehensive about the concentration of the Magnificent Seven stocks in the S&P 500. However, it’s worth noting that the Magnificent Seven collectively lost around $615 billion in market cap last Thursday, equivalent to the size of JPMorgan Chase, after a slide of over 3.5%. Despite this, the Magnificent Seven’s value has increased by approximately 43% this year, while the S&P 500 has seen growth of around 20%.

Aguirre pointed out the contrasting views among investors regarding investing in megacap companies. While some believe that the big will get bigger and the winners will continue to win, others worry about investing in these companies due to their high valuations. Since its launch on October 23, the iShares Top 20 U.S. Stocks ETF has seen a 2% decrease.