Russell 2000

Definition of 'Russell 2000'

An index set by Russell Investments, the Russell 2000 measures the bottom 2,000 of the 3,000 companies with the biggest market capitalizations (there's also a Russell 1000, for the top 1,000, and a Russell 3000, for the whole top 3,000, but nobody pays much attention to them).

The most common measure for small-caps, the Russell gets rebalanced every year on the last trading day in June. The rebalancing creates all kinds of fun in the market, as Russell-tracking funds, as well as some small-cap funds that shadow the index to some extent, drop the stocks exiting the index and load up on those entering it.