Is the Russell 200 Index Fund Only for Equity Investments?

The iShares Russell Top 200 Index ETF, ticker symbol IWL, generally invests at least 90 percent of its assets in securities and in depositary receipts representing various securities of the Russell 200 Index, explains U.S. News & World Report. The fund is nondiversified and tracks only large-capitalization U.S. equities.

The iShares Russell Top 200 Index ETF tracks mega-cap growth stocks that tend to enjoy strong profitability, durable competitive advantages and wide analyst coverage, according to Morningstar. Though mega-cap stocks tend to grow slower than smaller-cap stocks, these stocks are also usually less risky and more profitable in the long term. As of August 2015, the fund's asset allocation is 98.62 percent in U.S. stocks, 1.20 percent in non-U.S. stocks and 0.18 percent in cash.