The Russell 2000 Index is a small-cap

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 th ...

that makes up the smallest 2,000 stocks in the Russell 3000 Index. It was started by the

Frank Russell Company Frank or Franks may refer to: People * Frank (given name) * Frank (surname) * Franks (surname) * Franks, a medieval Germanic people * Frank, a term in the Muslim world for all western Europeans, particularly during the Crusades - see Farang Cur ...

in 1984. The index is maintained by FTSE Russell, a subsidiary of the London Stock Exchange Group (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 SICA ...

s that identify themselves as " small-cap", 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 ...

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 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 from Standard & Poor's, which is less commonly used, along with those from other financial information providers.

Record values

Annual returns

Investing

Many fund companies offer

s and exchange-traded funds (ETFs) that attempt to replicate the performance of the Russell 2000. Their results will be affected by stock selection, trading expenses, and market impact of reacting to changes in the constituent companies of the index. It is not possible to invest directly in an index.

References

External links