Russell 2000 Index

AAA

DEFINITION of 'Russell 2000 Index'

An index measuring the performance approximately 2,000 small-cap companies in the Russell 3000 Index, which is made up of 3,000 of the biggest U.S. stocks. The Russell 2000 serves as a benchmark for small-cap stocks in the United States.

INVESTOPEDIA EXPLAINS 'Russell 2000 Index'

The weighted average market capitalization for companies in the Russell 2000 is about US$1.3 billion and the index itself is frequently used as a benchmark for small-cap mutual funds.

RELATED TERMS
  1. Russell Midcap Index

    A market capitalization weighted index representing the smallest ...
  2. Small Cap

    Refers to stocks with a relatively small market capitalization. ...
  3. Passive Management

    A style of management associated with mutual and exchange-traded ...
  4. Standard & Poor's 500 Index - S&P ...

    An index of 500 stocks chosen for market size, liquidity and ...
  5. Russell 3000 Index

    A market capitalization weighted equity index maintained by the ...
  6. Russell Top 200 Index

    A market capitalization weighted index of the largest 200 companies ...
RELATED FAQS
  1. Why should I be looking at small cap stocks as a potential investment?

    Investors should look at small-capitalization stocks for upside growth potential and portfolio diversification. Despite these ... Read Full Answer >>
  2. How do returns on private equity investments compare to returns on other types of ...

    For high-net-worth individuals and institutional investors, private equity is an attractive investment option because of ... Read Full Answer >>
  3. Are small cap companies more risky investments than large cap companies?

    Small cap companies are riskier investments than large cap companies, because small cap companies have less access to resources, ... Read Full Answer >>
  4. What should I use as a benchmark for my small-cap stock portfolio?

    When creating a stock portfolio, it is important to have a benchmark against which you can compare your returns. Comparing ... Read Full Answer >>
  5. Which is the best index to use to study the possible future price action of a given ...

    It is a smart idea to study the movements of a broad-based index of companies before making an investment decision. Specifically, ... Read Full Answer >>
  6. What are the Basel III rules, and how does it impact my bank investments?

    The Basel III rules are a regulatory framework designed to strengthen financial institutions by placing guidelines pertaining ... Read Full Answer >>
Related Articles
  1. Investing Basics

    An Introduction To Stock Market Indexes

    Investopedia explains the five most talked about indexes and what makes them all different.
  2. Markets

    Understanding Small- And Big-Cap Stocks

    If you don't realize how big small-cap stocks can be, you'll miss some good investment opportunities.
  3. Investing Basics

    How To Evaluate A Micro-Cap Company

    Learn how to think big by investing in smaller stocks.
  4. Mutual Funds & ETFs

    Modernize Your Portfolio With ETF Futures

    Gain access to premier, highly liquid ETFs with lower capital requirements.
  5. Markets

    An Introduction To Small Cap Stocks

    When it comes to a company's size, bigger isn't always better for investors. Find out more here.
  6. Economics

    The ABCs Of Stock Indexes

    Indexes can track market trends, but they're not always reliable. Can you trust them?
  7. Investing Basics

    What's the Primary Market?

    The primary markets are where investors can get first crack at a new security issuance.
  8. Mutual Funds & ETFs

    Which ETF is the Best Bet: VTI or IWV?

    A look at two quality ETFs that offer diversification, low expense ratios, and exposure to the total market.
  9. Investing Basics

    How the S&P 500 and Russell 2000 Indexes Differ

    The S&P 500 and Russell 2000 are used as benchmarks for broader segments of the U.S. stock market. Each index has its own approach to measuring stocks.
  10. Economics

    An Introduction to Government Loans

    Government loans further policymakers' efforts to create positive social outcomes by offering timely access to capital for qualified candidates.

You May Also Like

Hot Definitions
  1. Fiduciary

    1. A person legally appointed and authorized to hold assets in trust for another person. The fiduciary manages the assets ...
  2. Expected Return

    The amount one would anticipate receiving on an investment that has various known or expected rates of return. For example, ...
  3. Carrying Value

    An accounting measure of value, where the value of an asset or a company is based on the figures in the company's balance ...
  4. Capital Account

    A national account that shows the net change in asset ownership for a nation. The capital account is the net result of public ...
  5. Brand Equity

    The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent. ...
Trading Center