Russell 1000 Index

DEFINITION of 'Russell 1000 Index'

An index of approximately 1,000 of the largest companies in the U.S. equity markets, the Russell 1000 is a subset of the Russell 3000 Index. The Russell 1000 (maintained by the Russell Investment Group) comprises over 90% of the total market capitalization of all listed U.S. stocks, and is considered a bellwether index for large cap investing.

The Russell 1000 is a market capitalization-weighted index, meaning that the largest companies constitute the largest percentages in the index and will affect performance more than the smallest index members.


BREAKING DOWN 'Russell 1000 Index'

The Russell 1000 is a much broader index than the often quoted Dow Jones Industrial Average (DJIA) and Standard & Poor's 500 Index (S&P 500), although all three are considered large cap stock benchmarks. Many institutional managers prefer the Russell 1000 as a barometer for large cap investments as a whole; the average market cap of a Russell 1000 company is over $80 billion, and all of the index members are considered highly liquid stocks.

An ETF representing the Russell 1000 can be purchased for a minimal expense ratio; the ETF is called the iShares Russell 1000 Index and trades on the New York Stock Exchange (NYSE) under the ticker IWB.

RELATED TERMS
  1. Benchmark

    A standard against which the performance of a security, mutual ...
  2. Exchange-Traded Fund (ETF)

    A security that tracks an index, a commodity or a basket of assets ...
  3. Russell 2000 Index

    An index measuring the performance approximately 2,000 small-cap ...
  4. Large Cap - Big Cap

    A term used by the investment community to refer to companies ...
  5. Standard & Poor's 500 Index - S&P ...

    An index of 500 stocks chosen for market size, liquidity and ...
  6. Dow Jones Industrial Average - ...

    The Dow Jones Industrial Average is a price-weighted average ...
Related Articles
  1. Mutual Funds & ETFs

    The Top 5 Morgan Stanley Funds for Retirement Diversification in 2016 (MS)

    Learn how to use mutual funds from Morgan Stanley to create a high-growth retirement savings portfolio with global diversification.
  2. Mutual Funds & ETFs

    The Top 5 Mainstay Funds for Retirement Diversification in 2016

    Discover how to use award-winning MainStay mutual funds from New York Life to build a high-quality and diversified retirement savings portfolio.
  3. Mutual Funds & ETFs

    The Top 5 Eaton Vance Funds for Retirement Diversification in 2016 (EV)

    Learn to increase the safety, returns and diversification of your retirement savings by investing in mutual funds from Eaton Vance.
  4. Stock Analysis

    Top 5 Companies Owned By L'Oréal

    Learn how L'Oréal is the world's largest cosmetic company with more than $29 billion in annual revenue. Discover more about some of the companies L'Oréal owns.
  5. Mutual Funds & ETFs

    The Top 5 Mid Cap Core ETFs for 2016 (VO, IJH)

    Read about some of the top mid-cap ETFs, and learn how you can use these funds to get broad exposure to an important segment of the equities market.
  6. Mutual Funds & ETFs

    FXH: First Trust Health Care AlphaDEX ETF

    Learn more about the First Trust Health Care AlphaDEX exchange-traded fund, an indexed fund that uses an advanced stock selection methodology.
  7. Mutual Funds & ETFs

    FXG: First Trust Consumer Staples AlphaDEX ETF

    Read an in-depth analysis of the First Trust Consumer Staples AlphaDEX Fund, a strong defensive fund with a unique stock selection process.
  8. Mutual Funds & ETFs

    Benchmark Your Returns With Indexes

    If your portfolio is always falling short, you may not be making an apples-to-apples comparison.
  9. Mutual Funds & ETFs

    4 Ways To Use ETFs In Your Portfolio

    To take full advantage of these vehicles, you need to know how they can fulfill certain strategies.
  10. Mutual Funds & ETFs

    Index Investing

    Get to know the most important market indices and the pros and cons of investing in them.
RELATED FAQS
  1. What are common advantages of investing in large cap stocks?

    Most investors understand the importance of diversification through asset allocation within a portfolio, which is meant to ... Read Full Answer >>
  2. Is it possible to invest in an index?

    First, let's review the definition of an index. An index is essentially an imaginary portfolio of securities representing ... Read Full Answer >>
  3. 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 >>
  4. How liquid are BlackRock mutual funds? (BLK)

    BlackRock, Inc. (NYSE: BLK) mutual funds are very liquid, as are all mutual funds. An investor receives payment for a redemption ... Read Full Answer >>
  5. What is after-hours trading? Am I able to trade at this time?

    After-hours trading (AHT) refers to the buying and selling of securities on major exchanges outside of specified regular ... Read Full Answer >>
  6. Are target-date retirement funds good investments?

    The main benefit of target-date retirement funds is convenience. If you really don't want to bother with your retirement ... Read Full Answer >>
Hot Definitions
  1. Short Selling

    Short selling is the sale of a security that is not owned by the seller, or that the seller has borrowed. Short selling is ...
  2. Harry Potter Stock Index

    A collection of stocks from companies related to the "Harry Potter" series franchise. Created by StockPickr, this index seeks ...
  3. Liquidation Margin

    Liquidation margin refers to the value of all of the equity positions in a margin account. If an investor or trader holds ...
  4. Black Swan

    An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult ...
  5. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the ...
  6. Socially Responsible Investment - SRI

    An investment that is considered socially responsible because of the nature of the business the company conducts. Common ...
Trading Center