Mega-cap refers to a special sub-set of large cap companies. While large-cap companies are those which have market capitalization in excess of $10 billion, the mega-cap companies are the ones whose market capitalization is in excess of $100 billion. The list of such companies has increased in recent times, as companies like Apple, Inc. and Amazon.com, Inc. have either already touched the landmark $1 trillion market cap milestone, or are within the touching distance of the super-rich figure. Mega-cap exchange-traded funds (ETF) are those ETFs which invest in such large-value companies that rank in the top-most rung of market cap. A lot of ETFs have been launched by various fund houses and asset management companies allowing investors a wide range of choice to take a shot at mega cap companies through the ETF route. Beyond the mega-cap ETFs, one can also find Large Cap ETFs, Mid Cap ETFs, Small Cap ETFs and Micro Cap ETFs. Following is the list of all 13 exchange-traded funds that FKnol has in its database for ETFs which belong to the Mega Cap category:
The ProShares Ultra Dow30 provides 2x leveraged exposure to the price-weighted Dow Jones Industrial Average, which includes 30 of the largest and most stable US companies. ...Detailed Profile Dividend Frequency: Quarterly Dividend History
Category: Leveraged Equities
The SPDR Global Dow ETF tracks an equal-weighted index of global blue-chip stocks selected by Dow Jones. ...Detailed Profile Dividend Frequency: Quarterly Dividend History
Category: Large Cap Blend Equities
The SPDR Euro STOXX 50 ETF tracks a market-cap-weighted index of 50 of the largest eurozone companies. ...Detailed Profile Dividend Frequency: Quarterly Dividend History
Category: Europe Equities
The iShares India 50 ETF tracks a market-cap-weighted index of 50 blue-chip companies traded on the National Stock Exchange of India. ...Detailed Profile Dividend Frequency: Semi-Annually Dividend History
Category: Asia Pacific Equities
The iShares Russell Top 200 ETF tracks a market-cap-weighted index of the 200 largest US companies. ...Detailed Profile Dividend Frequency: Quarterly Dividend History
Category: Large Cap Growth Equities
The iShares Russell Top 200 Value ETF tracks an index of U.S. large-cap value stocks. The index selects from stocks ranked 1-200 by market cap based on 2 style factors. ...Detailed Profile Dividend Frequency: Quarterly Dividend History
Category: Large Cap Value Equities
Such mega-cap ETFs allow a single, low-cost and convenient way of investing in multiple mega-cap stocks. They offer the benefits of diversifying the investment across multiple mega-cap companies, yet holding the entire diversified set of investment through a single stock in the form of ETF units. Investors, who believe in the potential of large-cap stocks which are generally known to pay off regular dividend that makes for a small but steady source of income, should consider the mega-cap ETF investments. Though a lot of these instruments come at a low cost of investment, one should check the expense ratio as that may vary depending upon the kind of stocks that the mega-cap ETF is investing in. For instance, if a mega-cap ETF is investing in stocks of overseas companies, the cost may be higher.
Where do Mega Cap ETFs Invest?
A long list of companies and different financial instruments exist where the Mega Cap exchange-traded funds may invest the money collected from the ETF investors. Below is a small sample of companies whose stocks may qualify for investment by Mega Cap ETFs, though there can be many more businesses and financial instruments where these ETFs can park the capital for returns:
▶ The Procter and Gamble Co. (PG): The Procter & Gamble Company provides branded consumer packaged goods to consumers in North America, Europe, the Asia Pacific, Greater China, Latin America, India, the Middle East, and Africa. The com....Detailed Company Profile....Dividend History
▶ Merck and Co., Inc. (MRK): Merck & Co., Inc., incorporated in 1970, is a global healthcare company. The Company offers health solutions through its prescription medicines, vaccines, biologic therapies and animal health products. It operates ....Detailed Company Profile....Dividend History
▶ McDonald's Corp. (MCD): McDonalds Corporation (McDonalds), incorporated on December 21, 1964, operates and franchises McDonalds restaurants. The Companys restaurants serve a locally relevant menu of food and drinks sold at various price points ....Detailed Company Profile....Dividend History
▶ Starbucks Corp. (SBUX): Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates in four segments: Americas; China Asia Pac....Detailed Company Profile....Dividend History