The Russell 2000 Index: What Is It & How Exactly Does It Work?

Founded in 1984, the Russell 2000 is a small-cap index…representing about 8% of the total market profit of the Russell 3000 index…and is weighted according to market capitalization…The index is broken down [as follows:]

• 17.78% financial services,
• 15.53% health care,
• 15.38% producer durables,
• 16.64% technology,
• 12.51% consumer discretionary…

The Russell 2000 index is a good gauge of small-cap stock…[and, as such,] doesn’t accurately reflect the overall, total stock market…so, rather than relying on one market alone, it’s wise to diversify your portfolio and invest in multiple funds across multiple categories. #munKNEE/Money!

Here’s How the Russell 2000 is Doing Right Now

The above excerpts from the original article by Gil Ben Hur have been edited ([ ]) and abridged (…) for the sake of clarity and brevity.