DEFINITION of 'Russell Midcap Index'

A market capitalization weighted index representing the smallest 800 companies in the Russell 1000 Index. The average Russell Midcap Index member has a market cap of $8 billion to $10 billion, with a median value of $4 billion to $5 billion. The index is reconstituted annually so that stocks that have outgrown the index can be removed and new entries can be added.

BREAKING DOWN 'Russell Midcap Index'

The Russell Midcap Index is a complete subset of both the Russell 1000 and the Russell 3000. Midcap fund managers have few good indexes against which to benchmark their returns, making the Russell Midcap Index a valuable one for institutional portfolio managers. The range of market caps covered in this 800-member index goes from about $1 billion on the low end to roughly $20 billion.

RELATED TERMS
  1. Russell Top 200 Index

    A market capitalization weighted index of the largest 200 companies ...
  2. Russell 1000 Index

    An index of approximately 1,000 of the largest companies in the ...
  3. Russell 3000 Growth Index

    A market capitalization weighted index based on the Russell 3 ...
  4. Russell 3000 Value Index

    A market-capitalization weighted equity index maintained by the ...
  5. Russell Small Cap Completeness ...

    A capitalization weighted index composed of all of the Russell ...
  6. Russell 2000 Index

    An index measuring the performance approximately 2,000 small-cap ...
Related Articles
  1. Insights

    Investment Fundamentals: S&P 500 Index Vs. Russell 1000 Index

    Learn about the similarities and differences between the S&P 500 and the Russell 1000 indices, and discover why investors may choose one over the other.
  2. Investing

    Russell Rebalance Study: What You Need to Know

    Analyze the recent stock performance for different types of stocks to determine which equities could gain or benefit ahead of Russell index reconstitution.
  3. Investing

    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.
  4. Investing

    S&P 500 Vs. Russell 2000 ETF: Which Should You Get?

    We look at the differences of investing in the S&P 500 vs. the Russell 2000 exchange-traded fund, and when to choose the one over the other.
  5. Investing

    The Top 5 Mid-Cap Growth ETFs for 2016 (VOT, IWP)

    Discover five of the top mid-cap growth ETFs available, and learn how to get exposure to growth-oriented companies across the economy.
  6. Investing

    Key Factors Of The Russell 2000 Index

    The Russell 2000 index represents the small cap universe, with a broad selection of fast growth companies at the bottom end of the capitalization spectrum.
  7. Investing

    The Top 3 ETFs For Investing in the Russell 200 Index (IWL, IWY)

    Learn about three ETFs that track the Russell Top 200 Index and how these ETFs have a very high correlation with the S&P 500 index.
  8. Investing

    IWD: iShares Russell 1000 Value ETF

    Learn about the iShares Russell 1000 Value exchange-traded fund (ETF), which invests in value stocks that are included in the Russell 1000 Value index.
  9. Investing

    IWM: iShares Russell 2000 Index ETF

    Find out more about the iShares Russell 2000 exchange-traded fund, or ETF, the characteristics of this ETF and its suitability for investing.
  10. Investing

    4 Best US Mid-Cap Index Mutual Funds

    Discover the four best mutual funds that use a passive investment strategy by following indexes that track the performance of mid-cap U.S. stocks.
RELATED FAQS
  1. Is there an index for tracking mid-cap stocks?

    Learn the specifics about indexes available for tracking companies with market capitalizations in the medium-sized, small ... Read Answer >>
  2. 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 Answer >>
  3. What are the most important equity market indexes?

    Discover the most important equity market indexes. Stock market indexes are tools to evaluate the performance of the stock ... Read Answer >>
  4. Are mid-cap stocks more profitable than large-cap stocks?

    Learn if investing in a mid-cap stock may yield better performance than doing so in a large-cap stock. Learn the traits mid-cap ... Read 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 Answer >>
  6. Is there such a thing as a nano cap or micro cap index?

    While there are indexes that track micro cap stocks, there are few indexes tracking nano caps. Although definitions vary, ... Read Answer >>
Hot Definitions
  1. Graduate Record Examination - GRE

    A standardized exam used to measure one's aptitude for abstract thinking in the areas of analytical writing, mathematics ...
  2. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
  3. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
  4. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  5. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  6. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
Trading Center