Displaying items by tag: mega cap
Three ETFs for Global Large Cap Exposure
Global equity ETFs are gaining attention as investors seek cost-effective exposure to international stocks, even as 2025’s first half brought mixed results amid resilient earnings, easing inflation, and rising geopolitical risks.
European-domiciled global large-cap blend ETFs pulled in €30 billion between January and May, reflecting a surge in popularity over the past year. Morningstar analysts screened 152 funds in this category, identifying 16 passively managed ETFs with Silver Medalist Ratings based on their high long-term performance potential.
Among the largest are the iShares Core MSCI World UCITS ETF (EUNL), Vanguard FTSE All-World UCITS ETF (VWRL), and Xtrackers MSCI World UCITS ETF (XDWL), all of which delivered solid one-year returns despite modest year-to-date declines. These ETFs track broad global benchmarks and, in some cases, outperformed them slightly over the past year.
Finsum: For investors looking to diversify beyond U.S. markets, these highly rated global funds offer a straightforward, low-cost entry point.
This Large Cap Blend Might Be For You
The Franklin U.S. Large Cap Multifactor Index ETF (FLQL), launched by Franklin Templeton in 2017, provides broad exposure to the U.S. large cap blend market by tracking the LibertyQ US Large Cap Equity Index. With $1.56 billion in assets under management and an expense ratio of just 0.15%, FLQL is a low-cost option for investors seeking diversified exposure to large, stable companies combining value and growth traits.
The ETF emphasizes information technology, healthcare, and telecom, with top holdings including Nvidia, Microsoft, and Apple—its top ten positions making up over a third of the portfolio.
Its strategy uses a multifactor model focusing on quality, value, momentum, and low volatility to outperform traditional benchmarks like the Russell 1000 over time. Year to date, FLQL has returned 10.89% and nearly 18.52% over the past year, with a beta of 0.94 and 217 holdings to help mitigate company-specific risk.
Finsum: For those comparing alternatives, SPY and VOO are larger and slightly cheaper S&P 500-tracking ETFs, but FLQL offers a unique multifactor approach worth considering.
Three Large Caps to Keep an Eye On
Mike Bailey, director of research at FBB Capital Partners, shared his outlook on large-cap stocks during an appearance on CNBC. Bailey expressed optimism about the U.S. economic outlook for 2025 and beyond, highlighting job growth and strong macroeconomic conditions as key factors.
He emphasized that large-cap companies are better positioned than small caps to deliver consistent long-term earnings growth and exceed expectations. Three of the large-cap stocks have seen significant gains due to favorable market conditions and growth prospects.
The selection of these stocks, all with market capitalizations exceeding $10 billion, was based on their top performance over the 30 days ending January 22, 2025. Among the standouts are SoFi Technologies, United Airlines, and Rocket Lab, which benefited from strong earnings, strategic partnerships, and growth in innovative sectors, cementing their positions as key players in their respective industries.
Finsum: Finding large caps without technology could be the short term play with all of the tech volatility.