ZACKSยท2025-07-16 11:20Core Viewpoint - The Invesco S&P 500 Top 50 ETF (XLG) is a significant player in the Large Cap Blend segment of the US equity market, with over $9.59 billion in assets, making it one of the largest ETFs in this category [1] Group 1: Fund Overview - XLG is a passively managed ETF launched on May 4, 2005, sponsored by Invesco [1] - The fund targets companies with market capitalizations above $10 billion, which are typically stable with predictable cash flows [2] Group 2: Costs and Performance - The annual operating expenses for XLG are 0.20%, which is competitive within its peer group, and it has a 12-month trailing dividend yield of 0.70% [3] - As of July 16, 2025, XLG has increased by approximately 5.87% year-to-date and 12.06% over the past year, with a trading range between $40.94 and $52.70 in the last 52 weeks [6] Group 3: Sector Exposure and Holdings - The ETF has a significant allocation of about 44.70% to the Information Technology sector, with Telecom and Consumer Discretionary following [4] - Microsoft Corp (MSFT) constitutes about 11.57% of total assets, with the top 10 holdings making up approximately 60.6% of total assets under management [5] Group 4: Risk and Alternatives - XLG has a beta of 1.04 and a standard deviation of 18.92% over the trailing three-year period, indicating a medium risk profile [7] - The ETF holds a Zacks ETF Rank of 2 (Buy), suggesting it is a strong option for investors seeking exposure to the Large Cap Blend segment [8] Group 5: Competitive Landscape - Other ETFs like the SPDR S&P 500 ETF (SPY) and Vanguard S&P 500 ETF (VOO) also track similar indices, with SPY having $639.29 billion and VOO $688.86 billion in assets, and lower expense ratios of 0.09% and 0.03% respectively [9] Group 6: Market Trends - Passively managed ETFs are gaining popularity among both institutional and retail investors due to their low cost, transparency, flexibility, and tax efficiency, making them suitable for long-term investment strategies [10]