The Russell 2000 offers a comprehensive snapshot of the small-cap market \u2014 stocks that belong to companies with a market capitalization between USD $300 million and USD $2 billion. These stocks can outperform blue-chips, but come with some risk.<\/p>
The Russell 2000 is a market-cap weighted index that tracks 2,000 of the smallest-cap companies in the US. Companies within the Russell 2000 are pulled from its parent index: the Russell 3000<\/a>. It helps small-cap investors gauge the US stock market.<\/p> The Russell 2000 was founded in 1984 by the Frank Russell Company, a subsidiary of the London Stock Exchange Group. Today, it\u2019s managed by the FTSE Russell, a British data and analytics firm that maintains stock market indices.<\/p> Because the Russell 2000 is just an index of stocks, you can\u2019t invest in it directly. However, you can invest in individual stocks tracked by the index or buy into ETFs that track the index.<\/p> Here\u2019s a quick look at the investment process:<\/p>How to invest in the Russell 2000<\/h3>