Russell 3000 Value Index


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.

BREAKING DOWN '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.

  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. Institutional Brokers' Estimate ...

    A system that gathers and compiles the different estimates made ...
  4. Market Capitalization

    The total dollar market value of all of a company's outstanding ...
  5. Value Stock

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

    A stock market index weighted by the market capitalization of ...
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