Barclays Global Introduces Mega Cap ETFs
September 25, 2009

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%.