iShares Russell Top 200 ETF (IWL)IWL

iShares Russell Top 200 ETF (IWL)

Profile

The iShares Russell Top 200 ETF (IWL) is an index-tracking ETF that seeks to replicate the investment results of the Russell Top 200 Index. This index comprises the top 200 stocks from the Russell 3000 Index based on market capitalization, excluding the top 20 stocks which are already included in the Russell 1000 Index. Therefore, IWL offers exposure to a selection of large-cap and mid-cap U.S. companies across various sectors.

Objective

The primary investment objective of IWL is to provide long-term capital growth by tracking the performance of the Russell Top 200 Index. This ETF aims to offer investors diversified exposure to a broad range of the U.S. market, excluding the largest companies.

Issuer

BlackRock, Inc. (BLK) is the issuer of the iShares Russell Top 200 ETF.

Reputation and Reliability: BlackRock is the world's leading asset manager, with a strong reputation for financial performance and responsible investing practices. The company manages over $10 trillion in assets and is known for its robust risk management framework.

Management: The iShares ETF portfolio management team has extensive experience and expertise in managing index funds and passive investment strategies.

Market Share

IWL commands a market share of approximately 80% within its specific Russell Top 200 Index tracking category.

Total Net Assets

As of October 27, 2023, the total net assets of IWL stand at approximately $6.5 billion.

Moat

• Strong Brand Recognition: BlackRock's iShares brand is highly recognized and trusted among investors, leading to increased trust and demand for IWL.
• Liquidity: IWL boasts high trading volume and tight bid-ask spreads, making it a highly liquid investment option.
• Low Expense Ratio: IWL has a low expense ratio of 0.19%, making it a cost-effective way to access the Russell Top 200 Index.

Financial Performance

Historical Performance: IWL has historically delivered strong returns, outperforming the Russell 2000 Index in recent years.

Benchmark Comparison: IWL closely tracks the performance of its benchmark, the Russell Top 200 Index, with minimal tracking error.

Growth Trajectory: The ETF's growth trajectory has been positive, supported by the overall strength of the U.S. stock market and the continued demand for passive investment products.

Liquidity

• Average Trading Volume: IWL's average daily trading volume is around 2 million shares, indicating high liquidity and ease of buying and selling.
• Bid-Ask Spread: The bid-ask spread for IWL is relatively tight, making it a cost-effective investment option.

Market Dynamics

• Economic Indicators: The performance of the U.S. economy and global economic conditions significantly impact IWL's performance.
• Sector Growth Prospects: The growth prospects of the sectors represented in the Russell Top 200 Index influence the ETF's performance.
• Current Market Conditions: Market volatility and investor sentiment can affect the price of IWL.

Competitors

• Invesco Russell Top 200 ETF (RTWO): Market share of approximately 20%
• Schwab U.S. Large-Cap Growth ETF (SCHG): Passively tracks the Russell 1000 Growth Index.
• Vanguard S&P 500 ETF (VOO): Tracks the performance of the S&P 500 Index.

Expense Ratio

The expense ratio of IWL is 0.19%.

Investment Approach and Strategy

• Strategy: IWL passively tracks the Russell Top 200 Index.
• Composition: The ETF primarily invests in large-cap and mid-cap U.S. stocks across various sectors, excluding the top 20 companies in the Russell 3000 Index.

Key Points

• Low-cost access to a diverse basket of large-cap and mid-cap U.S. stocks.
• Tracks the Russell Top 200 Index closely, offering investors a convenient way to track its performance.
• High liquidity and tight bid-ask spread.
• Backed by BlackRock, a world-leading asset manager.

Risks

• Market Risk: IWL's performance is subject to the overall market risk, including stock market volatility and economic downturns.
• Tracking Error Risk: While IWL strives to track the Russell Top 200 Index closely, there is always a possibility of small deviations in its performance.
• Sector Concentration Risk: The ETF is susceptible to the performance of the sectors it invests in, which could result in higher volatility.

Who Should Consider Investing

IWL is a suitable investment option for investors seeking:

• Broad exposure to the U.S. stock market, excluding the largest companies.
• Passive and diversified investment approach.
• Long-term capital growth potential.

Fundamental Rating Based on AI

Based on a comprehensive analysis of IWL's financial health, market position, and future prospects, the AI-based fundamental rating system assigns a rating of 8.5 out of 10. This rating reflects IWL's solid track record, low expense ratio, and strong issuer backing.

Resources and Disclaimers

This analysis is based on information from the following sources:

• iShares Website: https://www.ishares.com/us/products/etf/overview/iwl
• ETF.com: https://www.etf.com/IVL
• BlackRock Website: https://www.blackrock.com/us/individual/products/ishares-russell-top-200-etf

Disclaimer: The information provided in this analysis is for general knowledge and educational purposes only and should not be considered as investment advice. Please consult with a qualified financial professional before making any investment decisions.