Russell 2000 Definition

Dictionary of Financial Terms

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.

Definitions of Financial Terms