What is the Russell 2000 Index?

Below is the description and breakdown of the Russell 2000 Index:

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Investopedia Definition

The Russell 2000 Index is a stock market index that measures the performance of 2,000 small-cap companies included in the Russell 3000. The Russell 3000 Index is a part of the FTSE Russell group that measures the performance of the largest 3,000 U.S. companies, which represent 96% of the investable U.S. equity market. This is then broken down into the Russell 1000 (the largest 1,000 companies) and the Russell 2000 (the smallest 2,000 companies from the original 3,000).

The 2,000 companies in the Russell 2000 represent only 7% of the market capitalization present in the Russell 3000.

Russell 2000 Sub-Indexes

Russell 2000 Growth Index

• The companies within the Russell 2000 with higher price-to-value ratios and higher forecasted growth values

Russell 2000 Value Index

• The companies within the Russell 2000 with lower price-to-book ratios and lower forecasted growth values

Russell 1000 Microcap Index

• The smallest 1,000 companies within the Russell 2000

Russell 2000 Index…