Glossary
Russell 2000
FTSE Russell’s benchmark of about 2,000 US small-cap stocks, the smallest members of the Russell 3000; reconstituted twice a year from 2026.
On this page
The Russell 2000 is the most widely followed index of US small-company stocks. Maintained by FTSE Russell, part of the London Stock Exchange Group, it holds roughly the 2,000 smallest companies in the Russell 3000, which itself covers the 3,000 largest US stocks. Because small companies depend more on domestic demand and bank credit than global giants do, the index is often read as a gauge of the US economy and of investors' appetite for risk.
How it works
FTSE Russell ranks eligible US companies by total market capitalization on a "rank day." The largest 1,000 form the Russell 1000, and the next 2,000 form the Russell 2000. Within the index, each stock is weighted by its float-adjusted market cap, so larger members count for more, but no single company dominates the way the biggest names do in the S&P 500.
Membership changes at reconstitution. From 2026 the US indexes reconstitute twice a year, in June and December, instead of once each June. For the December 2026 update, rank day was October 30, 2026, and the changes take effect after the close on December 11, 2026.
How it is used
- Benchmark. Small-cap funds are measured against it, and ETFs and futures make it easy to trade.
- Economic signal. Its members carry more floating-rate debt and fewer overseas sales than large caps, so the index tends to react strongly to interest rates and domestic growth.
- Different makeup. It includes many companies that are not yet profitable, which helps explain why its Volatility usually exceeds the S&P 500's.