The Russell 2000 Index is a
small-cap
Market capitalization, sometimes referred to as market cap, is the total value of a publicly traded company's outstanding common shares owned by stockholders.
Market capitalization is equal to the market price per common share multiplied by ...
stock market index
In finance, a stock index, or stock market index, is an index that measures a stock market, or a subset of the stock market, that helps investors compare current stock price levels with past prices to calculate market performance.
Two of the ...
that makes up the smallest 2,000 stocks in the
Russell 3000 Index
The Russell 3000 Index is a Capitalization-weighted index, capitalization-weighted stock market index that seeks to be a benchmarking, benchmark of the entire Stock markets in the United States, U.S stock market. It measures the performance of the ...
. It was started by the
Frank Russell Company in 1984. The index is maintained by
FTSE Russell
FTSE Russell is a subsidiary of London Stock Exchange Group (LSEG) that produces, maintains, licenses, and markets stock market indices. The division is notable for FTSE 100 Index, Russell 2000 Index, among other indices.
The brand and division ...
, a subsidiary of the
London Stock Exchange Group
London Stock Exchange Group plc (LSEG) is a United Kingdom-based stock exchange and financial information company headquartered in the City of London, England. It owns the London Stock Exchange (on which it is also listed), Refinitiv, LSEG Te ...
(LSEG).
Overview
The Russell 2000 is by far the most common benchmark for
mutual fund
A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. The term is typically used in the United States, Canada, and India, while similar structures across the globe include the SICAV i ...
s that identify themselves as "
small-cap
Market capitalization, sometimes referred to as market cap, is the total value of a publicly traded company's outstanding common shares owned by stockholders.
Market capitalization is equal to the market price per common share multiplied by ...
",
while the
S&P 500
The Standard and Poor's 500, or simply the S&P 500, is a stock market index tracking the stock performance of 500 large companies listed on stock exchanges in the United States. It is one of the most commonly followed equity indices. As of D ...
index is used primarily for large capitalization stocks. It is the most widely quoted measure of the overall performance of small-cap to mid-cap company shares. It is commonly considered an indicator of the U.S. economy due to its focus on small-cap companies in the U.S. market. The index represents approximately 10% of the total market capitalization of the
Russell 3000 Index
The Russell 3000 Index is a Capitalization-weighted index, capitalization-weighted stock market index that seeks to be a benchmarking, benchmark of the entire Stock markets in the United States, U.S stock market. It measures the performance of the ...
. , the weighted average market capitalization for a company in the index is around $3.1 billion; the median market cap is $1.0 billion. The market cap of the largest company in the index is $10.1 billion.
It first traded above the 1,000 level on May 20, 2013, and above the 2,000 level on December 23, 2020.
Similar small-cap indices include the
S&P 600
The S&P SmallCap 600 Index (S&P 600) is a stock market index established by Standard & Poor's. It covers roughly the small-cap range of American stocks, using a capitalization-weighted index.
To be included in the index, a stock must have a total ...
from
Standard & Poor's
S&P Global Ratings (previously Standard & Poor's and informally known as S&P) is an American credit rating agency (CRA) and a division of S&P Global that publishes financial research and analysis on stocks, bonds, and commodities. S&P is con ...
,
which is less commonly used, along with those from other financial information providers.
Record values
Annual returns
Investing
Many fund companies offer
mutual fund
A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. The term is typically used in the United States, Canada, and India, while similar structures across the globe include the SICAV i ...
s and
exchange-traded fund
An exchange-traded fund (ETF) is a type of investment fund and exchange-traded product, i.e. they are traded on stock exchanges. ETFs are similar in many ways to mutual funds, except that ETFs are bought and sold from other owners throughout the ...
s (ETFs) that attempt to replicate the performance of the Russell 2000. Their results will be affected by stock selection, trading expenses, and
market impact
In financial markets, market impact is the effect that a market participant has when it buys or sells an asset. It is the extent to which the buying or selling moves the price against the buyer or seller, i.e., upward when buying and downward when ...
of reacting to changes in the constituent companies of the index. It is not possible to invest directly in an index.
See also
*
Russell Investments
Russell Investments is an investment firm headquartered in Seattle, Washington.
Corporate overview
According to ''American Banker'', Russell Investments has approximately $300 billion of assets under management, as of September 2019. The firm r ...
*
Russell 3000 Index
The Russell 3000 Index is a Capitalization-weighted index, capitalization-weighted stock market index that seeks to be a benchmarking, benchmark of the entire Stock markets in the United States, U.S stock market. It measures the performance of the ...
*
Russell 1000 Index
The Russell 1000 Index is a stock market index that tracks the highest-ranking 1,000 stocks in the Russell 3000 Index, which represent about 93% of the total market capitalization of that index. , the stocks of the Russell 1000 Index had a weighted ...
*
S&P 600
The S&P SmallCap 600 Index (S&P 600) is a stock market index established by Standard & Poor's. It covers roughly the small-cap range of American stocks, using a capitalization-weighted index.
To be included in the index, a stock must have a total ...
*
iShares Russell 2000
This is a table of notable American exchange-traded funds, or ETFs. As of 2020, the number of exchange-traded funds worldwide is over 7600, representing about 7.74 trillion U.S. dollars in assets. The largest ETF, as of April 2021, was the SPDR ...
*
List of largest daily changes in the Russell 2000
This is a list of the largest daily changes in the Russell 2000 Index since 1987.
Largest percentage changes
Largest point changes
Largest intraday point swings
Largest daily percentage changes per year
* Year has not yet e ...
References
External links
Russell 2000 Index Fact SheetRussell US IndexesRussell Investment Group
{{Stock Market Indices
2000_Index
American stock market indices
Companies listed on the New York Stock Exchange
1984 introductions