Where have you heard about the SmallCap 2000 index?

What is the SmallCap 2000 index?

Another name given to the Russell 2000 by investors.

It's a stock index that's comprised of the smallest 2,000 companies in the Russell 3000 Index. The Russell 3000 is made up of the largest 3,000 public companies incorporated in the US, based on their total market capitalisation.

As the name suggests, many investors use the index as a benchmark for small-cap stocks in the US. The 2,000 companies included in the index account for roughly 8% of the Russell 3000's total market capitalisation.

What you need to know about the SmallCap 2000 index.

Since it acts as a benchmark for small-cap stocks, the index is closely followed by 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 SmallCap 2000/Russell 2000.

Operated by FTSE Russell, it serves as the sister index to the Russell 1000, which is made up of the highest-ranking 1,000 stocks listed on the Russell 3000.