Focus on giants! Invesco and BlackRock successively launch "Nasdaq and S&P Giants ETF"

Since the beginning of this year, the U.S. stock market has shown a clear "top effect", with giant stocks leading the market. To follow this trend, U.S. asset management giants have successively launched ETF products focusing on top companies' stocks to attract investors' attention.

Following BlackRock's submission of an application earlier this month, JPMorgan has also joined the battle, planning to launch a new fund called "JPMorgan Mega QQQ ETF" (QBIG), tracking the top 45% by weight in the Nasdaq-100 Mega Index.

Currently, the index components include giants such as Apple, Microsoft, NVIDIA, Amazon, Meta, Google's parent company Alphabet, and Costco.

Strategas ETF strategist Todd Sohn stated, "This fund caters to investors who only want to invest in top index stocks," but also cautioned about related risks, "once these stocks underperform, investors will also face losses."

Since the beginning of this year, giant stocks in the U.S. stock market have led the market, contributing to most of this year's gains. For example, JPMorgan's ETF tracking the top 50 stocks in the S&P 500 has outperformed the equal-weighted S&P 500 ETF by 11 percentage points.

Under this trend, some ETFs focusing on large-cap stocks have been favored by investors. For instance, the Roundhill Magnify ETF (MAGS) has seen its assets under management increase from around $35 million at the beginning of the year to about $673 million.

This has also prompted more ETF "big players" to seek to catch up with this trend. Previously, BlackRock had submitted an application to launch funds tracking the top 30 stocks in the Nasdaq-100 Index and the top 20 stocks in the S&P 500 Index