Russell 2000 Index

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.

BREAKING DOWN '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.

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