Quick Definition

The Russell 2000 Index is a stock market index that measures the performance of the 2,000 smallest companies listed on the Russell 3000 Index, representing the small-cap segment of the U.S. equity universe.

Examples

• 1An investor looking for exposure to small-cap U.S. stocks might invest in a mutual fund or ETF that tracks the Russell 2000 Index.
• 2Financial analysts use the Russell 2000 Index to gauge the health and trends of the small-cap market segment in the U.S.
• 3Portfolio managers might compare the performance of their small-cap investments against the Russell 2000 to assess relative performance.
• 4Investment advisors often recommend Russell 2000 index funds as a way to diversify a portfolio that is heavily weighted in large-cap stocks.

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