Russell 2000 Index
What is the Russell 2000 Index?
The Russell 2000 Index is a small cap index including the bottom 2000 stocks of the Russell 3000 index. The companies within the 2000 are small cap mutual funds and the Russell 2000 is the most quoted measure of these companies.
The Russell 2000 Index eventuated after Frank Russell started a brokerage firm in Washington, U.S in the 1930s.
Uses of Russell 2000 Index
The Russell 2000 Index is used to measure management performance of mutual funds.
Risks of the Russell 2000 Index
Like any index around the world, they are susceptible to the risks of the ups and downs of the business cycles. This can include a downturn or a recession, due to poor company results or a fall in demand of products produced.