Float market-capitalization-weighted U.S. Equity indices published by Russell Investment Group of Tacoma, Washington. The Russell Indices are widely quoted on TV and radio, and in newspapers, and are used as benchmarks for more than $2.5 trillion invested in mutual and pension funds. The company offers a family of 24 U.S. Equity indices, all of them subsets of the Russell 3000 Index that measures the performance of the 4,000 largest U.S. Companies based on market capitalization, approximately 99% of the U.S. Equity market. The stocks in the index have a market capitalization range of approximately $55 million to $387 billion, with a weighted average of $73.8 billion; the median market capitalization is approximately $540 million.
The Russell 1000 Index represents the highest-ranking 1,000 stocks in the Russell 3000 Index, which represents about 90% of the total market capitalization of that index. The Russell 1000 Index has a weighted average market capitalization of $81 billion; the median market capitalization is approximately $4.6 billion. The smallest company in the index has a market capitalization of $1.8 billion. The Russell 2000 Index measures performance of the 2,000 smallest companies in the Russell 3000 Index, about 9% of its total market capitalization. The weighted average capitalization is approximately $948.6 million; the median market capitalization is $539.5 million. The largest company in the index has an approximate market capitalization of $1.8 billion.
The Russell 2000 is a popular measure of the stock price performance of small companies.
The Russell Top 200 Index measures the performance of the 200 largest companies (63% of total market capitalization) in the Russell 1000, with weighted average market capitalization of $110.5 billion. The median capitalization is $24 billion; the smallest company in the index has an approximate capitalization of $14 billion.
The Russell Midcap Index measures performance of the 800 smallest companies (26% of total capitalization) in the Russell 1000, with weighted average market capitalization of approximately $6.7 billion, median capitalization of $3.6 billion, and market capitalization of the largest company $13.7 billion.
The Russell 2500 Index measures the performance of the 2,500 smallest companies in the Russell 3000 Index, or about 19% of its total capitalization. Weighted average capitalization is approximately $2 billion and median capitalization is $705.8 million. The largest company in the index is $4.5 billion.
The Russell Small Cap Completeness Index measures the performance of the companies in the Russell 3000 excluding the companies in the Standard & Poor's 500 Index. It provides a performance standard for active money managers seeking a liquid extended benchmark, and can be used for a passive investment strategy in the extended market. Weighted average market capitalization is approximately $5.7 billion; median market capitalization, $711.5 million. The index's largest company has a market capitalization of approximately $83.7 billion; the smallest, $182.6 million. Russell offers growth and value indices based on these equity indices. Growth indices measure performance of the respective companies with higher Price/Book Ratios and higher forecasted growth values. Value indices measure the performance of those companies with lower price/book ratios and lower forecasted growth values. The company has licensed Barclays Global Investors the right to create exchange-traded funds based on 13 of the Russell indices. These exchange-traded funds, called "ishares" are managed by Barclays Global Fund Advisors. Russell 2000 Index MITTS, or Market Index Target-Term Securities, reflects the composite performance of the index. The Chicago Board Options Exchange trades options on the Russell 2000 Index, the Chicago Mercantile Exchange trades futures, options, and e-mini futures on the Russell 2000 Index and futures on the Russell 1000. The New York Board of Trade trades futures (three contract sizes) and options on the Russell 1000 Index, Russell 2000, Russell 2000 Growth, Russell 2000 Value, Russell 1000 Growth, Russell 1000 Value and Russell 2500 indices. Philadelphia Stock Exchange, Pacific Stock Exchange, International Stock Exchange and AMEX offer options on Russell index-based ishares. Russell also offers indices and related products for the Japanese market with 15 Japan equity indices in association with Nomura Research Institute. www.russell.com. See also Stock Indices and Averages.
