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What is Russell 2000 index?
The Russell 2000 Index is a stock market index that measures the performance of approximately 2,000 small-cap companies in the United States. It is maintained by the global index provider FTSE Russell and is widely recognized as a benchmark for tracking the performance of small-cap stocks.

The index includes companies with relatively smaller market capitalizations compared to those listed on major exchanges such as the S&P 500. It represents a diverse range of industries and sectors, providing investors with a broader perspective on the overall health and trends of small-cap stocks.

The Russell 2000 Index is market-cap weighted, which means that companies with higher market capitalizations have a greater impact on the index's performance. It is often used as a barometer for gauging the performance of the broader small-cap segment of the stock market and is considered an important tool for investors, portfolio managers, and financial professionals who focus on small-cap stocks.

As with any stock market index, the Russell 2000 Index is subject to fluctuations and can be influenced by various economic factors, market conditions, and investor sentiment.
The Russell 2000 Index is a benchmark that measures the performance of 2,000 small-cap companies in the U.S. It is a subset of the Russell 3000 Index, which represents the total U.S. stock market. Created in 1984 by FTSE Russell, this index is widely regarded as a barometer for the health of small-cap companies, which typically have market capitalizations between $300 million and $2 billion.

Unlike the S&P 500, which focuses on large-cap companies, the Russell 2000 provides insight into the performance of smaller businesses that are more sensitive to domestic economic changes. Investors often use it for diversification and as a gauge for riskier, growth-oriented investments. Its performance is closely watched by fund managers and retail investors alike.

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