ETF News & Commentary
SAN DIEGO (ETFguide.com) - Three new stock exchange-traded funds (ETFs) from Barclays Global Investors have just been introduced.
The funds will focus on the largest of large company stocks taken from the Russell 3000 index (NYSEArca: IWV).
The new large cap ETFs with ticker symbols are:
--iShares Russell Top 200 Value Index Fund (NYSEArca: IWX)
--iShares Russell Top 200 Index Fund (NYSEArca: IWL)
--iShares Russell Top 200 Growth Index Fund (NYSEArca: IWY).
The funds will compete head-to-head with other mega-cap ETFs like Vanguard Mega Cap 300 (NYSEArca: MGC), Mega Cap 300 Value (MGV) and Mega Cap 300 Growth (NYSEArca: MGK). These Vanguard ETFs charge annual expenses of 0.13%.
The median market cap for stocks within IWL is $19.72 billion and the fund’s underlying index owns around 125 stocks. Top holdings include AT&T, Exxon Mobil and Pfizer.
IWX owns value stocks and is overweight the financial and energy sectors. Together, both areas represent nearly 50% of the fund’s industry sector allocation.
In contrast, IWY focuses on growth stocks and is overweight technology and healthcare stocks. Both areas account for half of IWY’s sector weighting. Technology stocks have been among this year’s best performing areas.
The underlying Russell indexes for the new iShares funds are float-adjusted market capitalization weighted.
So far in 2009, large company stocks (NYSEArca: SPY) have lagged mid and small company stocks (NYSEArca: VXF) as the risk appetite by investors for greater investment gains has taken hold.
According to the prospectus, IWL will have annual expense ratios of just 0.15%, while IWX and IWY will charge 0.20%.
Recent Headlines
Brokerage Products and Services offered by Scottrade, Inc. - Member FINRA and SIPC
Online market and limit stock trades are just $7 for stocks priced $1 and above.
Any specific securities, or types of securities, used as examples are for demonstration purposes only. No information on this Web site should be considered a recommendation or None of the information provided should be considered a recommendation or solicitation to invest in, or liquidate, a particular security or type of security.
Investors should consider the investment objectives, risks, charges, and expenses of an ETF carefully before investing. For a prospectus containing this, and other important information, contact the fund company. The prospectus should be read carefully before investing.
Investors should consider the investment objectives, risks, and charges and expenses of a mutual fund carefully before investing. A mutual fund's prospectus contains this and other information about the mutual fund. Prospectuses are available through our trading site or through a Scottrade branch office. The prospectus should be read carefully before investing. No transaction fee (NTF) funds are subject to the terms and conditions of the NTF funds program. Scottrade is compensated by the funds participating in the NTF program through recordkeeping, shareholder, or SEC 12b-1 fees.
Investors should consider the investment objectives, charges, expense, and unique risk profile of an Exchange Traded Fund (ETF) carefully before investing. Leveraged and Inverse ETFs may not be suitable for long-term investors and may increase exposure to volatility through the use of leverage, short sales of securities, derivatives and other complex investment strategies. A prospectus contains this and other information about the ETF and should be obtained from the issuer. The prospectus should be read carefully before investing.
Margin trading involves interest charges and risks, including the potential to lose more than deposited, or the need to deposit additional collateral in a falling market. Margin Disclosure Statement (PDF) is available for download, or it is available at one of our branch offices. It contains information on our lending policies, interest charges, and the risks associated with margin accounts.
Options involve risk and are not appropriate for all investors. Detailed information about the risks associated with options can be found in the Scottrade Options Application and Agreement, Brokerage Account Agreement, or by downloading the Characteristics and Risks of Standardized Options and Supplements (PDF) from The Options Clearing Corporation, or by requesting a copy from your local branch office. Supporting documentation for any claims will be supplied upon request.
Market volatility, volume, and system availability may impact account access and trade execution.
Testimonials may not be representative of the experience of other clients and are no guarantee of future performance or success.