"When you own the 100 largest companies in America, you're betting on a simple idea: big gets bigger. The iShares S&P 100 ETF (NYSEARCA:OEF) delivers exactly that, offering concentrated exposure to mega-cap names like NVIDIA Corporation ( NASDAQ:NVDA), Apple Inc. ( NASDAQ:AAPL), and Microsoft Corporation ( NASDAQ:MSFT). But concentration cuts both ways. This ETF works best for investors who want amplified exposure to large-cap technology and accept the tradeoffs that come with it. OEF tracks the S&P 100, which holds the largest companies in the S&P 500."
"The concentration strategy has paid off for long-term holders. Over the past five years, the fund's heavy allocation to mega-cap technology has driven substantial gains, with the portfolio effectively doubling in value. This performance stems directly from the fund's structure: the top three holdings command 28% of total assets, meaning the portfolio's fate is tightly bound to America's largest tech companies. When these giants grow, OEF amplifies those gains."
The iShares S&P 100 ETF (OEF) tracks the S&P 100 index and concentrates on America's largest companies, with a heavy weight toward mega-cap technology. Technology comprises nearly 40% of the portfolio, while communication services and consumer discretionary contribute another roughly 25%, producing a pronounced growth tilt rather than broad diversification. The top three holdings account for about 28% of assets, making returns closely tied to a few dominant firms. The fund has delivered strong five-year gains as mega-cap tech rose, carries a 0.20% expense ratio, a 25-year track record, and a current yield near 0.86%.
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