What is the Russell Microcap Index?

Tangiers Investment Group, LLC, is a hedge fund and private equity firm in San Diego, California that leverages the experience of its staff to execute strategic investments that support the growth of small and micro-cap companies. Partnering with businesses in a wide range of industries, Tangiers Investment Group, LLC, identifies high-performing micro-cap enterprises that are ripe for accelerated growth.

Publicly traded micro-cap companies are tracked on the stock exchange alongside larger corporations. Launched in 2005, The Russell Microcap Index is composed of more than 2,500 companies with market caps as low as $50 million. Every year, the Index is analyzed and updated, as companies may outgrow micro-cap parameters. Startups in the health, financial services, and technology spaces make up the bulk of companies in the Index.

As micro-cap stocks are often illiquid, investors may opt to purchase exposure through companies such as iShares, an exchange-traded fund (ETF) that follows the Russell Microcap Index. The index covers approximately 3 percent of the stock market by capitalization. Other such indices include The Wilshire US and the MSCI USA Micro Cap.