On Friday, iShares launched three new funds targeting the 200 largest firms in the Russell Index, a group that comprises approximately 65% of the U.S. market. The funds are:
- Russell Top 200 Index Fund (NYSEARCA:IWL),
- Russell Top 200 Growth Index Fund (NYSEARCA:IWY), and
- Russell Top 200 Value Index Fund (NYSEARCA:IWX).
With the addition of these three funds, iShares raises the number of funds based on various Russell indexes to 16.
The Russell Top 200 Index Fund is a subset of the Russell 1000, and is heavy in well known firms such as Exxon Mobil (NYSE:XOM), Procter & Gamble (NYSE:PG), and Apple (NASDAQ:AAPL). The Russell 1000 is dominated by large cap companies – the average market cap is $91 billion – and it is overweight in technology and healthcare firms.
The Russell Top 200 Growth Index fund has companies with higher price-to-book ratios and higher forecasted growth values. Companies in this index tend to be in the technology or healthcare sectors and include well known firms such as IBM and Johnson & Johnson
The Russell Top 200 Value Index fund measures the performance of the largest stocks in the U.S. equity universe with lower price-to-book ratios and lower forecasted growth values. These firms include Pfizer and JP Morgan, and the fund is slightly skewed towards financial and energy firms.
Below is a quick comparison between the funds:
Disclosure: no positions