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What is the Russell 2000?

Russell 2000

A stock index that's made up of the small-cap 2,000 companies in the wider Russell 3000 Index, and also known as SmallCap 2000. Operated by FTSE Russell, the index is free-float and capitalisation weighted. Its members account for around 8% of the Russell 3000's total market capitalisation.

Where have you heard about the Russell 2000?

You'll often see analysts use the index as a benchmark for small-cap stocks in the US.

What you need to know about the Russell 2000.

The index is frequently used as a benchmark for small-cap mutual funds and is particularly popular with investment fund providers. A number of mutual funds and exchange-traded funds have been launched over the years, with the aim of broadly replicating the performance of the Russell 2000. A number of ETFs have also been launched to closely track the index, including asset managers like BlackRock and Vanguard.

Companies in the Russell 2000 are average market cap weighted at about US$1.3 billion.

The broader Russell 3000 measures the performance of the largest 3,000 public companies incorporated in the US, based on their total market capitalisation and the Russell 2000 is the sister index of the Russell 1000, which is made up of the highest-ranking 1,000 stocks listed on the wider Russell 3000.

Find out more about the Russell 2000.

For more on how stocks are bought and sold, see our definition of shares trading.

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