Best Large Cap ETFs Right Now

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Contributor, Benzinga
June 27, 2023

When market volatility is high, investors seek solid ground. There are few market spaces more stable than the large-cap sector — where big companies with big money reside. They use the economy of scale and large market share to stay on top. To be in this group, a company must have a market capitalization of more than $10 billion. A company’s total capitalization comes from multiplying its stock price by its number of shares.

During a financial crisis, large-cap firms are generally the last companies to fall. The sheer wealth of these businesses insulates them from many risk factors. This makes large-cap stocks less risky than small-cap stocks. However, large-cap stocks definitely have risks. 

Large-cap exchange-traded funds (ETF) allow you to simultaneously invest in many large-cap businesses at a fraction of the cost of buying stock from each company. The diversified approach of these funds allow you to get maximum return with the smallest amount of risk.

Quick Look at the Best Large Cap ETFs Right Now:

  1. SPDR S&P 500 ETF (SPY)
  2. iShares Core S&P 500 ETF (IVV)
  3. Vanguard S&P 500 ETF (VOO)
  4. Schwab US Large-Cap ETF (SCHX)
  5. Goldman Sachs ActiveBeta International Equity ETF (GSIE)
  6. iShares ESG MSCI USA Leaders ETF (SUSL)

Large Cap ETFs Biggest Gainers and Losers 

Benzinga publishes a daily biggest gainers and losers list. You can use this as a reference to get familiar with the activity in the large-cap sector. Generally, large-cap ETFs have a positive correlation to the S&P 500. This means the ETF stock prices go in the same direction as the market. 

Stock Movers

Session: Feb 22, 2024 4:00PM EST - Feb 23, 2024 3:17PM EST

Premarket Large Cap ETFs

Premarket sessions give you the ability to make trades before the opening bell. Keep in mind that the premarket doesn’t always duplicate the regular session. Take the time to get used to it.

Stock Movers

Gainers

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Session: Feb 22, 2024 4:00PM EST - Feb 23, 2024 9:29AM EST

Aftermarket Large Cap ETFs

Sometimes, late-breaking news or events can affect large-cap stock prices. The aftermarket allows you to buy on the dip or cut your losses.

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Session: Feb 22, 2024 4:00PM EST - Feb 22, 2024 7:59PM EST

Why Invest in Large Cap ETFs?

There are some great reasons to invest in large-cap ETFs. 

  • Secure long term income: Large-cap stocks have the resources, liquidity, strong management and credit to continue making dividend payments over the long haul. Large-cap ETFs distribute 100% of the dividends to you, the investor.
  • Super diversification: The large-cap sector has a subcategory of companies — mega-cap companies. Mega-cap companies have a capitalization greater than $200 billion. These giant companies often own many other companies. When you invest in a large-cap ETF, mega-cap companies give you multiple diversifications. 
  • Transparency: Typically, large-cap companies are very transparent — it’s easier for you to keep track of their operations and maneuvers.

Considerations With Large Cap ETFs

Large cap ETFs are an excellent investment, but there are a few things that should give investors pause. Make certain that the ETF you choose works for you given these parameters:

  • Initial investment outlay: Large cap ETFs will cost more, but that could be to your benefit. Depending on your budget, you may be able to invest in large ETFs, albeit on a smaller scale.
  • Time management: Make sure that you have time to wait for these large cap ETFs to mature in a manner that serves you best.
  • Growth potential: When you invest in a large cap ETF, you may not have as much growth potential as you would see with others. Some investors are willing to wait, but some are not. Make sure the ETFs you choose match your personal investment strategy.
  • Losing market segments: When segments of the market slip, they could bring down certain types of ETFs. While this would not spell the doom of an ETF, it could stunt the ETF’s growth in the present and potentially in the future.

6 Large-Cap ETF(s) by AUM

Based on AUM, these 3 funds are the top large-cap ETFs right now.

image-25

1. SPDR S&P 500 ETF (NYSE: SPY)

SPY is the most famous, active ETF in the world. It’s the richest large-cap ETF with $235.3 billion assets under management (AUM). By tracking the S&P 500, SPY offers investors tremendous exposure to the U.S. large-cap space. Holdings include Apple (NASDAQ: APPL), Microsoft Corp. (NASDAQ: MSFT), Amazon (NASDAQ: AMZN) and Facebook (NASDAQ: FB). 

This fund’s makeup is very diversified. SPY allocates 54.21% of its assets to its top 50 holdings. This approach has produced a 10-year annual rate of return (ARR) of 10.43%. The fund’s expense ratio is 0.09%.

$508.465
0.965[0.19%]
Last update: 3:02PM (Delayed 15-Minutes)
Get Real Time Here
Open509.270Close-Vol / Avg.37.434M / 77.116MMkt Cap-Day Range507.100 - 510.13052 Wk Range380.650 - 508.490
image-27

2. iShares Core S&P 500 ETF (IVV)

If you’re a buy-and-hold investor, IVV is a great prospect as a core holding for your portfolio. It’s a bigwig in the ETF world, with $162 billion AUM. IVV gives investors exposure to the same corporate heavyweights as SPY. However, IVV operates under a structure that permits it to eliminate specific companies. 

The fund also tracks the S&P 500. Except for trade volume, IVV matches SPY in several ways — particularly with its small expense ratio of 0.04%. The funds’ asset distribution percentages are almost identical. In the returns category, IVV showcases a 10-year ARR of 9.89%.

$510.95
0.90[0.18%]
Last update: 3:02PM (Delayed 15-Minutes)
Get Real Time Here
Open511.780Close-Vol / Avg.2.886M / 5.363MMkt Cap-Day Range509.570 - 512.63052 Wk Range382.370 - 510.940
image-26

3. Vanguard S&P 500 ETF (VOO)

Like SPY and IVV, VOO is massive, world-renowned and very liquid. It follows the S&P 500 as well. The 3 large-cap ETFs on this list are direct competitors. VOO lacks the volume or the maturity to challenge either one but gives you a more diversified position in the large-cap sector than the others do.  

VOO has an AUM of $114.5 billion, an expense ratio of 0.03% and a 5-year ARR of 6.72%. It offers an excellent way to keep pace with the market. It allows you to pocket steady dividend income and build your wealth from long term large-cap stock gains. 

$467.28
0.71[0.15%]
Last update: 3:02PM (Delayed 15-Minutes)
Get Real Time Here
Open468.090Close-Vol / Avg.2.938M / 5.103MMkt Cap-Day Range466.091 - 468.87052 Wk Range349.760 - 467.330

4. Schwab US Large-Cap ETF (SCHX)

The Charles Schwab US Large-Cap ETF attempts to track, as much as possible, the Dow Jones Large-Cap Total Stock Market Index. With low costs and a diversified portfolio, you gain access to around 750 large companies that are headquartered in the US, providing you with long-term growth potential.

$60.2799
0.0999[0.17%]
Last update: 3:02PM (Delayed 15-Minutes)
Get Real Time Here
Open60.350Close-Vol / Avg.1.024M / 1.996MMkt Cap-Day Range60.120 - 60.48552 Wk Range44.950 - 60.280

5. Goldman Sachs ActiveBeta International Equity ETF

The Goldman Sachs Active Beat International Equity ETF looks to offer investment opportunity and results that will closely track the Fund.

$33.515
0.075[0.22%]
Last update: 3:02PM (Delayed 15-Minutes)
Get Real Time Here
Open33.510Close-Vol / Avg.352.903K / 491.479KMkt Cap-Day Range33.445 - 33.54552 Wk Range28.510 - 33.460

6. iShares ESG MSCI USA Leaders ETF

The iShares ESG MSCI USA Leaders ETF aims to track the performance of a group of mid and large-cap U.S. stocks with high ESG principles and results.

$84.40
-6.47[-7.12%]
Last update: 7:00AM (Delayed 15-Minutes)
Get Real Time Here
Open91.280Close-Vol / Avg.31.609K / 48.412KMkt Cap-Day Range90.708 - 91.32052 Wk Range66.090 - 90.890

Best Online Brokers for Large Cap ETFs

There is no easier way to manage your large-cap ETF investments than through online brokers. You can research, track and trade your ETFs without the help of a finance professional. Among the growing number of online brokers, these 3 brands stand out. 

1. You Invest by J.P. Morgan

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    INVESTMENT PRODUCTS: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE

If you’re already a customer with Chase Bank, Chase You Invest by J.P. Morgan is a no-brainer. You can easily research, trade and manage your investments from your mobile device. You Invest provides online tools to search for investments, track companies and rollover your assets.

Only U.S. clients are able to open a You Invest account but it takes, on average, just a day to open and you’re able to apply fully online. Equipped with portfolio reports and pie charts, the mobile app is simple and user-friendly. The app is available for both iOS and Android devices.

With Chase You Invest you’ll have access to roughly 5,000 stock exchanges. There are plenty of research and educational tools provided on the app. Overall, the Chase You Invest platform for stock trading is a good option because it’s easy to open and fund an account. It’s also reliable thanks to its strong parent company, J.P. Morgan. 

2. TradeStation

TradeStation is a full-service online broker for active traders. Its award-winning trading platforms can make your large-cap ETF trading fast, thorough and efficient. This broker uses 30 years of online trading experience to provide you with powerful and responsive trading tools. 

These advanced tools will help you test, optimize, track and automate your ETF investment strategies. TradeStation also offers an advanced order management system, customizable charts and market scanning. All features come with $0 ETF trading and easy onboarding. You can also trade beyond the regular trading day with TradeStation’s extended-hours trading sessions. 

3. Firstrade

Firstrade offers $0 ETF trades and a 0.1-second trade guarantee. This 35-year-old broker’s dashboard setup can be an excellent workstation for your large-cap trading activities. From your dashboard, you can get real-time streaming OTF watchlists, market news from Benzinga, alerts and Firstrade’s Navigator. 

Firstrade Navigator grants you 1-screen access to your account information and trading screens. It features customizable widgets, technical charting, adjustable layouts and graphs. Plus, Firstrade provides you with extended-hours trading.

4. TD Ameritrade 

For 45 years, TD Ameritrade has been the leader in online trading. It provides the best overall selection of online trading services. This includes premier platforms for traders of all levels. The web platform provides novice traders with a user-friendly environment to research ETF investment opportunities and make trades confidently.

With TD Ameritrade’s thinkorswim, you can get the experience of working from a first-rate trading desk. It connects you with a vast community of online ETF traders. With thinkorswim’s interactive dashboard, you can communicate with other ETF traders and watch real-time, streaming trader-created content. Plus, TD Ameritrade offers $0 trades and 24-hour trading Monday through Friday. 

Choose Large Cap ETFs for Your Portfolio

When the stock market surges upward, large-cap ETFs can seem a little boring to many investors. (If you have a high tolerance for risk, look into penny stocks.)

However, if you’re looking for stability during volatile times, large-cap ETFs make it possible for the average investor to get a share of big corporate profits without taking a chance in the open stock market. 

Frequently Asked Questions

Q

What is the largest ETFs by holdings?

A

As of November 2022, the largest ETF by holdings (AUM) is iShares Core S&P 500 ETF (IVV).

Q

Are large-cap ETFs stable or risky?

A

Typically, large-cap ETFs are a stable investment.

Q

Which large-cap ETFs should I buy?

A

Check out Benzinga’s recommendations on the list above.

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