You are connecting from Lake Geneva Public Library, please login or register to take advantage of your institution's Ground News Plan.
Published 8 hours ago • loading... • Updated 57 minutes ago
What is the Russell 2000 index, and how does it compare to the S&P 500 and Nasdaq 100?
The index holds 2,000 smaller companies and is reconstituted twice a year, giving investors a broader gauge of U.S. small-cap performance.
The Russell 2000 index tracked 2,000 small-cap U.S. companies with a median market capitalization of $1.06 billion as of September 30, 2026, serving as a primary barometer for small-cap stock performance.
Smaller companies within the index frequently exhibit greater volatility than their large-cap counterparts, often lacking the scale of major corporations like Apple and relying heavily on domestic economic conditions.
To maintain its small-cap focus, the index undergoes rule-based reconstitution twice annually in June and December, removing companies that outgrow the market capitalization threshold and ensuring representation of the small-cap universe.
Unlike the price-weighted Dow Jones Industrial Average or the large-cap S&P 500, the index is less top-heavy and offers broader diversification across its 2,000 constituents, mitigating concentration risk.
Traders access the index through various futures contracts, including Russell 2000 futures and Micro E-mini Russell 2000 , which facilitate exposure to these smaller-cap stocks.