What is the 'Russell Midcap Index'

The Russell Midcap Index is a market capitalization weighted index comprised of 800 publicly traded U.S. companies with market caps of between $2 and $10 billion. The 800 companies in the Russell Midcap Index are the same 800 of the 1,000 companies that comprise Russell 1000 Index. The Russell 1000 Index is a compilation of the largest 1,000 publicly traded U.S. companies. 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. The 800 constituents of the Russell Midcap Index make up most of the Russell's large cap index, the Russell 1000, which is a compilation of the largest 1,000 publicly traded companies. It is worth noting that only 200 of the largest companies fall into the large cap or mega gap range. Midcap companies are definitely the majority. There are also 2,000 small cap companies traded on exchanges as well, which make up an even larger portion of available investments than mid and large cap combined. This is important to note because even though you hear most about the GEs and the Boeings, companies of that size do not represent the majority of shares traded on exchanges. 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.

RELATED TERMS
  1. Russell 2000 Index

    The Russell 2000 index measures the performance of approximately ...
  2. Russell 3000 Index

    The Russell 3000 Index is a market-capitalization-weighted equity ...
  3. Mid-Cap Fund

    A mid-cap fund is a type of investment fund that focuses its ...
  4. Russell Small Cap Completeness ...

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

    The Russell Microcap Index is an index of almost 1,550 small ...
  6. CBOE Russell 2000® Volatility Index ...

    The CBOE Russell 2000® Volatility Index is an indicator of the ...
Related Articles
  1. 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.
  2. 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.
  3. Investing

    The Top 5 Mid-Cap Value Mutual Funds for 2016

    Understand how mid-cap value stocks play a role in strategic asset allocation, and learn the best mid-cap value mutual funds to consider for 2016.
  4. Investing

    IJJ: iShares S&P Mid-Cap 400 Value ETF

    Understand how the iShares S&P Mid-Cap 400 Value exchange-traded fund presents an opportunity for investors to diversify a portfolio with mid-cap securities.
  5. Investing

    3 Mid-Cap Value ETFs for Bull and Bear Markets (XMLV, DON)

    These three ETFs have outperformed the S&P 500 Index during up and down markets, and should continue to do so based on their statistics and characteristics.
  6. Investing

    The Top 3 Mid-Cap Value ETFs for 2016

    For investors looking for potential growth with mitigated risk, here are three of the top ETFs with a focus on mid-cap value equities.
  7. 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.
  8. Investing

    Big Activity in Mid-Cap ETFs

    Some investors are eagerly betting on mid-cap ETFs.
  9. Investing

    IJH: iShares Core S&P Mid-Cap ETF

    Learn more about the iShares Core S&P Mid-Cap ETF, and understand how savvy investors might incorporate this ETF into their portfolio.
  10. Investing

    An Unheralded Low Beta ETF

    This low beta ETF tracks an offshoot of a popular index and could be a better bet than its cap-weighted rivals.
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?

    The Russell 2000 and S&P SmallCap 600 are two of the best indexes to use as a benchmark for small-cap performance. Read Answer >>
  3. What are some of the best small-cap index funds?

    Learn about the best small-cap index funds, such as the iShares Russell 2000, and why investors see them as good economic ... Read Answer >>
  4. 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 >>
  5. Are small cap companies more risky investments than large cap companies?

    Typically, small cap companies are not a safer investment than large cap companies. Read Answer >>
Trading Center