Russell 2000 Index

Last updated
Russell 2000
Russell 2000.png
Index between 1978–2012
Foundation1984;38 years ago (1984)
Operator FTSE Russell
Exchanges
Trading symbol
  • ^RUT
  • RUT
  • RTY
Constituents2,031 (January 31, 2022)
Type Small-cap
Weighting method Free-float capitalization-weighted
Related indices Russell 3000 Index
Website ftse.com/products/indices/russell-us

The Russell 2000 Index is a small-cap stock market index that makes up the smallest 2,000 stocks in the Russell 3000 Index. It was started by the Frank Russell Company in 1984. The index is maintained by FTSE Russell, a subsidiary of the London Stock Exchange Group (LSEG).

Contents

Overview

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. It is commonly considered an indicator of the U.S. economy due to its focus on small-cap companies in the U.S. market. The index represents approximately 10% of the total market capitalization of the Russell 3000 Index. As of 31 January 2022, the weighted average market capitalization for a company in the index is around $3.1 billion; the median market cap is $1.0 billion. The market cap of the largest company in the index is $10.1 billion. [1]

It first traded above the 1,000 level on May 20, 2013, and above the 2,000 level on December 23, 2020.

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.

Example Members of Russell 2000
CompanySymbol
Adtran Inc. ADTN
Denali Therapeutics, Inc.DNLI
Dorman Products, Inc.DORM
Earthstone Energy, Inc.ESTE
EverQuote, Inc. EVER
Fulton Financial Corp. FULT
Tilly's, Inc. TLYS
Workiva WK

Record values

CategoryAll-Time Highs [2]
Closing2,442.74Monday, November 8, 2021
Intraday2,458.86Monday, November 8, 2021

Annual returns

YearPrice returnTotal return
199526.21%28.45%
199614.76%16.49%
199720.52%22.36%
1998−3.45%–2.55%
199919.62%21.26%
2000−4.20%–3.02%
20011.03%2.49%
2002−21.58%–20.48%
200345.37%47.25%
200417.00%18.33%
20053.32%4.55%
200617.00%18.37%
2007−2.75%–1.57%
2008−34.80%–33.79%
200925.22%27.17%
201025.31%26.85%
2011−5.45%–4.18%
201214.63%16.35%
201337.00%38.82%
20143.53%4.89%
2015−5.71%–4.41%
201619.48%21.31%
201713.14%14.65%
2018−12.18%−11.01%
201923.72%25.52%
202018.36%19.96%
202113.69%14.82%

Investing

Many fund companies offer mutual funds and exchange-traded funds (ETFs) that attempt to replicate the performance of the Russell 2000. Their results will be affected by stock selection, trading expenses, and market impact of reacting to changes in the constituent companies of the index. It is not possible to invest directly in an index.

See also

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The Russell Top 200 Index measures the performance of the 200 largest companies in the Russell 1000 Index, with a weighted average market capitalization of $186 billion. The median capitalization is $48 billion; the smallest company in the index has an approximate capitalization of $14 billion.

The Russell Top 50 Index measures the performance of the largest companies in the Russell 3000 Index. It includes approximately 50 of the largest securities based on a combination of their market cap and current index membership and represents approximately 40% of the total market capitalization of the Russell 3000.

The Russell 2500 Index measures the performance of the 2,500 smallest companies in the Russell 3000 Index, with a weighted average market capitalization of approximately $4.3 billion, median capitalization of $1.2 billion and market capitalization of the largest company of $18.7 billion.

The Russell Microcap Index measures the performance of the microcap segment of the U.S. equity market. It makes up less than 3% of the U.S. equity market. It includes 1,000 of the smallest securities in the Russell 2000 Index based on a combination of their market cap and current index membership and it also includes up to the next 1,000 stocks. As of 31 December 2016, the weighted average market capitalization for a company in the index was $535 million; the median market cap was $228 million. The market cap of the largest company in the index was $3.6 billion.

The Russell Small Cap Completeness Index measures the performance of the companies in the Russell 3000 Index excluding the companies in the S&P 500. As of 30 April 2021, the index contains 2,561 holdings. It provides a performance standard for active money managers seeking a liquid extended benchmark, and can be used for a passive investment strategy in the extended market. Weighted average market capitalization is approximately $15.4 billion.

References

  1. "Russell 2000® Index Factsheet". ftse.com. February 28, 2019. Retrieved March 30, 2019.
  2. "Russell 2000 (^RUT) Historical Data - Yahoo Finance".