Plain-English definitions, reviewed by an independent investor
Russell 2000
The Russell 2000 is a benchmark of roughly 2,000 small U.S. companies, the standard small-cap gauge.
The Russell 2000 is a benchmark of roughly 2,000 small U.S. companies, the standard small-cap gauge.
(Float-adjusted; ~2000 smallest listed firms)
Why it matters
It captures the riskier, more domestic, faster-growing end of the market.
Common confusion
Small caps lag in risk-off periods and lead in recoveries, often sharply.
Frequently Asked Questions
Russell 2000 vs S&P 500?
Small caps vs mega-caps; more volatility, more domestic exposure.
How to track it?
Through ETFs that replicate the index; you cannot buy it directly.