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Investing Glossary – Russell 2000

The following is either adapted or copied from Wikipedia. Some small adjustments and additions may have been made by Investor in the Family staff. For more, see our Investing Glossary.

The Russell 2000 Index is a small-cap stock market index of the bottom 2,000 stocks in the Russell 3000 Index.

The Russell 2000 is by far the most common benchmark for mutual funds that identify themselves as “small-cap“, while the S&P 500 index is used primarily for large capitalization stocks. It is the most widely quoted measure of the overall performance of the small-cap to mid-cap company shares. The index represents approximately 8% of the total market capitalization of the Russell 3000 Index. Its first trades above the 1,000 level occurred May 21-22, 2013.

Similar small-cap indices include the S&P 600 from Standard & Poor’s, which is less commonly used, along with those from other financial information providers.

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