Russell 3000 Value Index

AAA

DEFINITION of 'Russell 3000 Value Index'

A market-capitalization weighted equity index maintained by the Russell Investment Group and based on the Russell 3000 Index, which measures how U.S. stocks in the equity value segment perform. Included in the Russell 3000 Value Index are stocks from the Russell 3000 Index with lower price-to-book ratios and lower expected growth rates.

INVESTOPEDIA EXPLAINS 'Russell 3000 Value Index'

The Russell 3000 Index is comprised of the Russell 1000 Index and the Russell 2000 Index. To assign growth and value weights within the Russell 3000 Index, the Russell Investment Group ranks the stocks within the Russell 1000 and 2000 Indexes, respectively. Stocks are ranked by their book-to-price (B/P) ratio and their forecast long-term growth mean according to the Institutional Brokers' Estimate System (IBES).

Once ranked, the Russell Investment Group uses a non-linear probability method to separate stocks into the growth and value styles. In general, a stock with a higher ranking is considered value, and a stock with a lower ranking is considered growth. Stocks in between have both growth and value features.

RELATED TERMS
  1. Russell 3000 Growth Index

    A market capitalization weighted index based on the Russell 3 ...
  2. Index

    A statistical measure of change in an economy or a securities ...
  3. Weighted Average Market Capitalization

    A stock market index weighted by the market capitalization of ...
  4. Value Stock

    A stock that tends to trade at a lower price relative to it's ...
  5. Market Capitalization

    The total dollar market value of all of a company's outstanding ...
  6. Institutional Brokers' Estimate ...

    A system that gathers and compiles the different estimates made ...
Related Articles
  1. Mutual Funds & ETFs

    3 Types Of Indexing For ETF Success

    ETF success relies on the index with which it's paired. Discover three index genres for tracking average market performance.
  2. Options & Futures

    Using Mutual Funds To Profit From Market Dips

    Stop hoping for the indexes to go up and start investing in the reverse.
  3. Investing

    Which is the best index to use to study the possible future price action of a given small-cap stock?

    It is a smart idea to study the movements of a broad-based index of companies before making an investment decision. Specifically, you should look at an index made up of companies whose attributes ...
  4. Mutual Funds & ETFs

    Index Investing

    Get to know the most important market indices and the pros and cons of investing in them.
  5. 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.
  6. 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.
  7. Markets

    Capital Markets

    Capital Markets are financial markets where organizations that need money for productive long-term purposes.
  8. Bonds & Fixed Income

    Spotting A Market Bottom

    Recognizing a market bottom can lead to huge opportunities for an investor. We go over how you can spot the bottom so that you can reap the rewards.
  9. Investing Basics

    What exactly is being done when shares are bought and sold?

    Most stocks are traded on physical or virtual exchanges. The New York Stock Exchange (NYSE), for example, is a physical exchange where some trades are placed manually on a trading floor (other ...
  10. Economics

    Introduction To Asian Financial Markets

    We look at the history of Asia's financial development and how investors can get involved in these growing markets.

You May Also Like

Hot Definitions
  1. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  2. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  3. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  4. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  5. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
  6. Key Performance Indicators - KPI

    A set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their ...
Trading Center