DEFINITION of 'Russell 2500 Index'

A broad index featuring 2,500 stocks that cover the small and mid cap market capitalizations. The Russell 2500 is a market cap weighted index that includes the smallest 2,500 companies covered in the Russell 3000 universe of United States-based listed equities.

The index is designed to be broad and unbiased in its inclusion criteria, and is recompiled annually to account for the inevitable changes that occur as stocks rise and fall in value.

BREAKING DOWN 'Russell 2500 Index'

The space covered by the blending of small and mid cap stocks is sometimes referred to as "smid" cap, and can describe any company up to the $10 billion market cap range. These companies are generally considered to be more growth oriented than large cap stocks, and may experience more volatility than the latter over long-term periods.

  1. Russell Small Cap Completeness ...

    The Russell Small Cap Completeness Index is a market capitalization ...
  2. Russell Microcap Index

    A capitalization weighted index of 2,000 small cap and micro ...
  3. Russell Midcap Index

    A market capitalization weighted index representing the smallest ...
  4. Russell 3000 Growth Index

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

    An equity index that has a limit on the weight of any single ...
  6. Annual Cap

    A clause found in the contract of an adjustable-rate mortgage ...
Related Articles
  1. Investing

    How to Analyze Mid-Cap Stocks

    Mid-cap stocks often outperform both large caps and small caps with very little added risk.
  2. Investing

    Why Trump's Small Cap Rally Is Flaming Out

    Small caps badly lag the market on concerns about delays in Trump's economic plans
  3. Investing

    Small Caps: Rising Rates Not All Bad News

    Small-cap stocks can be surprisingly durable in the face of higher interest rates.
  4. 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.
  5. Investing

    Build A Model Portfolio With Style Investing

    This sophisticated approach will add flair to your returns.
  6. Investing

    TNA: Direxion Small Cap Bull 3X ETF

    Read about a triple-leveraged exchange-traded fund that aims for 300% of the returns of the Russell 2000 Index: the Direxion Small Cap Bull 3X.
  7. Investing

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

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

    Which ETF To Choose: Small Cap Vs. Large Cap

    To get ahead, investors need to focus on rebalancing and diversification, rather than one asset class.
  9. Insights

    Bank of America Turns Bearish on Small-Cap Stocks

    Bank of America dumps small caps as the Russell 2000 can't keep up with the big boys.
  10. Trading

    Small Caps Are Just Too Risky At These Levels

    With the rise in the markets over the past few weeks many traders are starting to wonder if now is the time to buy small caps. These 3 charts suggest that it may be best to wait.
  1. Are small cap companies more risky investments than large cap companies?

    Learn about the risk of small cap companies compared to large cap companies. Compare the volatility of both and learn how ... Read Answer >>
  2. Are small cap companies a safer investment than large cap companies?

    Learn about the safety of small caps compared to large caps. Find out which key measures they differ on and which to pick ... Read Answer >>
  3. 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 >>
  4. How can I use market capitalization to evaluate a stock?

    Find out how market capitalization affects valuation in fundamental analysis, which valuation ratios use market cap and how ... Read Answer >>
  5. Why should I be looking at small cap stocks as a potential investment?

    Discover the role of small-capitalization stocks in an equity portfolio, and learn why investors take on additional risk ... Read Answer >>
Hot Definitions
  1. Money Market

    The money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities ...
  2. Perfect Competition

    Pure or perfect competition is a theoretical market structure in which a number of criteria such as perfect information and ...
  3. Compound Interest

    Compound Interest is interest calculated on the initial principal and also on the accumulated interest of previous periods ...
  4. Income Statement

    A financial statement that measures a company's financial performance over a specific accounting period. Financial performance ...
  5. Leverage Ratio

    A leverage ratio is any one of several financial measurements that look at how much capital comes in the form of debt, or ...
  6. Annuity

    An annuity is a financial product that pays out a fixed stream of payments to an individual, primarily used as an income ...
Trading Center