Russell 2000 Market Cap Cutoff 2023
What is the Russell 2000 Index?
The Russell 2000 Index is a stock market index that tracks the performance of the 2000 smallest publicly traded companies in the United States. It is a subset of the Russell 3000 Index, which tracks the performance of the 3000 largest publicly traded companies in the United States.
The Russell 2000 Index is a widely used benchmark for small-cap stocks. It is often used by investors to track the performance of the small-cap stock market and to compare the performance of small-cap stocks to the performance of large-cap stocks.
Russell 2000 Market Cap Cutoff 2023
The Russell 2000 market cap cutoff for 2023 is $10 billion. This means that to be included in the Russell 2000 Index, a company must have a market capitalization of less than $10 billion.
The Russell 2000 market cap cutoff is reviewed annually by FTSE Russell, the company that calculates and manages the Russell Indexes. The market cap cutoff is adjusted each year to ensure that the Russell 2000 Index continues to represent the performance of the 2000 smallest publicly traded companies in the United States.
Impact of the Russell 2000 Market Cap Cutoff
The Russell 2000 market cap cutoff has a significant impact on the composition of the Russell 2000 Index. Companies that exceed the market cap cutoff are removed from the index, and companies that meet the market cap cutoff are added to the index.
The Russell 2000 market cap cutoff also has a significant impact on the performance of the Russell 2000 Index. The index tends to perform well when the market is rising, and it tends to perform poorly when the market is falling.
Investing in the Russell 2000 Index
There are several ways to invest in the Russell 2000 Index. One way is to buy shares of an exchange-traded fund (ETF) that tracks the index. Some popular ETFs that track the Russell 2000 Index include the iShares Russell 2000 ETF (IWM) and the Vanguard Russell 2000 ETF (VTWO).
Another way to invest in the Russell 2000 Index is to buy shares of individual companies that are included in the index. Some popular companies that are included in the Russell 2000 Index include Synchrony Financial (SYF), Truist Financial (TFC), and Charles Schwab Corporation (SCHW).
