What makes up russell 2000

You might be using an unsupported or outdated browser. To get the best possible experience please use the latest version of Chrome, Firefox, Safari, or Microsoft Edge to view this website. The Russell is a stock market index that tracks the performance of 2, small-cap U. Managed by the U. The Russell index tracks the 2, smallest public companies by market cap in its parent Russell stock index.

The remaining 1, companies are grouped in the Russell large-cap stock index. Because small-cap companies , like those included in the Russell , make up a much smaller share of the U. To determine which companies get on each list, FTSE Russell Group ranks every company in the Russell based upon market capitalization and separates the top third into the Russell and the bottom two-thirds into the Russell In between the annual rank day reconstitution, eligible companies that go public, like through an initial public offering IPO , and qualify by market cap can be added to the Russell on a quarterly basis.

Because of this, the Russell may sometimes track more than 2, stocks. As of April 30, , the top 10 Russell companies by market cap include:. These additional indexes include:. That heavy focus on small-cap companies means the Russell may show more volatility than these indices because smaller companies have more limited financial resources than big companies and are less equipped to weather negative changes in the overall economy than their larger counterparts.

However, with that greater potential for risk comes built-in greater potential to grow exponentially. While investors could recreate the Russell by individually purchasing shares of each company in the index, it is far easier to simply invest in a Russell exchange-traded fund ETF or index fund that seeks to duplicate the performance of the index.

A number of brokerage companies offer Russell ETFs and index funds. That can offer the best of both worlds: a smoother ride for investors while still providing the opportunity for the impressive gains small-cap companies may be better positioned for. That said, small caps frequently experience more severe price swings than larger companies, meaning white-knuckle investors may find that Russell funds triggers panic that large-cap indexes do not. Even with the broad exposure of 2, companies, the risk inherent to this market segment means it is not necessarily an index to stake the majority of your portfolio on.

Editorial Independence We want to help you make more informed decisions. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money. What companies are in the Russell ? What is the average return of the Russell ?

Is the Russell a good investment? Trending 1. In your inbox every Tuesday. A valid email address is required. You must check the box to agree to the terms and conditions. Thanks for signing up! Sign up. Follow Us Facebook externa link icon. Twitter externa link icon. Instagram externa link icon. LinkedIn externa link icon. YouTube externa link icon. Tell us what you think Did this article answer your questions?

Yes No. What are your favorite topics to read about? Overview of Top Stock Market Indexes Learn what a stock market index is and how to read it, then watch the live indexes move. How is the Russell different from other major stock indexes?

Unlike most other indexes, the Dow is price-weighted, meaning that stocks with higher share prices contribute more to the index's performance. Note that they aren't necessarily the largest Nasdaq An index of of the largest Nasdaq-listed companies, widely considered a barometer for how tech stocks are performing.

Russell The 1, largest public U. The Russell and Russell are collectively known as the Russell , which is regarded as one of the best barometers for the overall U. So what makes the Russell different from the rest? Many of them are newer growth companies and so tend to be more volatile than their larger counterparts. Higher growth potential: While they tend to be more volatile, smaller-cap stocks typically have much more growth potential than larger companies.

So while their price swings tend to be more dramatic, small-cap stocks tend to outperform large caps over long periods. For one thing, it is less top-heavy, not depending as much on the performance of just a few large companies. Is investing in the Russell Index right for you? What is the Russell ?

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