The Russell 2000 Index is a small-cap stock market index that measures the performance of the 2,000 smallest companies in the Russell 3000 Index, representing approximately 10% of the total market capitalization of the Russell 3000.
Description: The Russell 2000 Index is a widely recognized benchmark for small-cap U.S. equities. It is maintained by FTSE Russell, a subsidiary of the London Stock Exchange Group. The index was launched in 1984 and is reconstituted annually in June to reflect changes in the small-cap segment. It includes companies from a diverse range of sectors, with a focus on domestic U.S. firms. The Russell 2000 is often used by investors to gauge the performance of the small-cap market and is the underlying index for numerous exchange-traded funds (ETFs) and index funds. Its composition is market-cap weighted, meaning larger companies within the index have a greater impact on performance. The index is considered a barometer for the U.S. economy, as small-cap companies tend to be more domestically focused and sensitive to economic cycles.
