Russell Top 200 Index 2025: Current Price, Insights & Key Benefits

Charlene Rhinehart is a CPA and CFE, leading an Illinois CPA Society committee, with expertise in accounting and finance from DePaul University.

What Is the Russell Top 200 Index?

The Russell Top 200 Index monitors the stock market performance of the 200 largest firms within the Russell 3000 index, acting as a key benchmark for ultra-large-cap U.S. stocks. This index offers investors a focused view on the biggest market players shaping the economy.

The broader Russell 3000 is a capitalization-weighted index representing the entire U.S. stock market, making the Top 200 a concentrated subset highlighting mega-cap companies.

Key Highlights

• Managed by FTSE Russell, the Russell Top 200 focuses on mega-cap equities.
• It includes the largest 200 companies from the expansive Russell 3000 index.
• Serves as a competitive benchmark alongside the S&P 500 and Dow Jones 30 for ultra-large-cap stocks.

Deep Dive Into the Russell Top 200 Index

Compared to the S&P 500, the Russell Top 200 offers a more concentrated portfolio of ultra-large-cap stocks. As of April 2024, these companies represent approximately 68% of the total Russell 3000 market capitalization.

Core sectors dominating the index include technology, consumer discretionary, healthcare, and financial services. The technology sector’s weight has grown significantly over the past decade, propelled by innovation and digital transformation.

Leading holdings feature tech titans such as Apple (AAPL), NVIDIA (NVDA), and Microsoft (MSFT), with the average market cap of constituents around $937 billion as of April 2024.

Advantages of Investing in the Russell Top 200 Index

Investing in ultra-large-cap stocks offers stability and consistent returns, often with less volatility than smaller firms. These giants operate across diverse markets, allowing them to offset downturns in specific sectors.

Many index members provide reliable dividends or share buyback programs, delivering steady income streams for investors. The Russell Top 200 embodies this dependable performance.

These mega-cap corporations wield substantial market influence. For example, Apple’s market capitalization topped $2.92 trillion in May 2024.

Currently, 14 U.S.-listed companies boast market caps exceeding $500 billion, predominantly in technology, including six surpassing the trillion-dollar mark. Historically, blue-chip firms like ExxonMobil (XOM) and General Electric (GE) dominated these spaces, prized for consistent dividends and dependable returns.

The FTSE Russell updates the index annually, ensuring it reflects the evolving market by adding rising giants and removing those that no longer qualify.

Traded under the ticker RT200, the index is accessible via ETFs, with the iShares Russell Top 200 Index ETF launched in September 2009 being the most popular option.

Limitations to Consider

The main drawback of investing in mature mega-cap companies is their relatively limited growth potential compared to emerging small-cap firms.

Smaller companies often drive faster innovation and product development, resulting in potentially higher stock market gains.

Large corporations face slower innovation cycles due to complex management structures, making their stocks more attractive for value and income rather than rapid growth.

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