Russell Microcap Index

Dictionary Says

Definition of 'Russell Microcap Index'

A capitalization weighted index of 2,000 small cap and micro cap stocks that captures the smallest 1,000 companies in the Russell 2000, plus 1,000 smaller U.S.-based listed stocks. The broad index is designed to present an unbiased collection of the smallest tradable securities that still meet exchange listing requirements, so over-the-counter (OTC) stocks and pink sheet securities are excluded.

The Russell Microcap Index is recalculated annually to prevent growing stocks from distorting index performance, and to include new entrants.


Investopedia Says

Investopedia explains 'Russell Microcap Index'

While the Russell 2000 is the most commonly quoted small cap index, the Microcap Index is a valuable tool for examining trends in smaller, startup companies. Membership changes much more on an annual basis than in the larger indexes that cover mid cap and large cap stocks. The Microcap Index represents just 3% of the overall U.S. equity market by capitalization.

Investors can purchase an ETF that replicates the Russell Microcap Index from iShares, which trades under the ticker "IWC".

Articles Of Interest

  1. How To Evaluate A Micro-Cap Company

    Learn how to think big by investing in smaller stocks.
  2. Benchmark Your Returns With Indexes

    If your portfolio is always falling short, you may not be making an apples-to-apples comparison.
  3. The ABCs Of Stock Indexes

    Indexes can track market trends, but they're not always reliable. Can you trust them?
  4. Spot Hotshot Penny Stocks

    Don't flip a coin to find your next investment.
  5. Weighted Average Cost Of Capital (WACC)

    Weighted average cost of capital may be hard to calculate, but it's a solid way to measure investment quality
  6. Exploring The Current Account In The Balance Of Payments

    Learn how a country's current account balance reflects the country's economic health.
  7. Taking Shots At CAPM

    Find out why many investors think the capital asset pricing model is full of holes.
  8. George Soros: The Philosophy Of An Elite Investor

    George Soros spent decades as one of the world's elite investors, and even he didn't always come out on top. But when he did, it was spectacular.
  9. Understanding And Playing The Dow Jones Industrial Average

    Learn strategies for investing in this price-weighted index and how to interpret its movements.
  10. Introduction To International CAPM

    ICAPM is one of several models used to determine the required return on an asset, discover its limitations and how to use it.
comments powered by Disqus
Marketplace
Hot Definitions
  1. Yield Elbow

    The point on the yield curve indicating the year in which the economy's highest interest rates occur. The yield elbow is the peak of the yield curve, signifying where the highest interest rates occurred.
  2. Xenocurrency

    A currency that trades in markets outside of its domestic borders.
  3. Wanton Disregard

    A standard of severe negligence. Wanton disregard is a very serious accusation that indicates that a person behaved extremely recklessly.
  4. Ultra ETF

    A class of exchange-traded funds (ETF) that employs leverage in an effort to achieve double the return of a set benchmark.
  5. Toehold Purchase

    A purchase of less than 5% of a target company's outstanding stockmade by an acquiring company. A toehold purchase of just under 5%, while not a significant stake in a firm, allows the shareholders a "toe-holds" grip on the company and its decision making.
  6. Samurai Bond

    A yen-denominated bond issued in Tokyo by a non-Japanese company and subject to Japanese regulations.
Trading Center
http://sp.fastclick.net/ad/tr/10858-64082-15546-0?mpt=ebf48f2025b5a6abca02b1bb0fbebb84