The Canadian Encyclopedia — neutral, cited, updated
July 26, 2026Sources cited
Canadianwire.
Canada’s encyclopedia & explainer
Home›Business & Money›Stock Market›Russell 2000 Index
Business & Money • Stock Market

Russell 2000 Index

The Russell 2000 Index is a U.S.

By Ethan Anderson| Reviewed by Olivia Bennett, Standards & Fact-Checking Lead| Updated July 26, 2026|2 min read| Fact-checked

The Russell 2000 Index is a U.S. stock market index that measures the performance of about 2,000 of the smallest publicly traded companies in the Russell 3000 Index. It is widely used as a benchmark for the U.S. small-cap market and is maintained by FTSE Russell. The index was created in 1984 by the Frank Russell Company.

Overview

The Russell 2000 Index is designed to represent the small-cap segment of the U.S. equity market. It is commonly cited as a broad indicator of smaller public companies in the United States.

Construction and methodology

The index consists of approximately 2,000 securities selected from the Russell 3000 universe. FTSE Russell describes it as a comprehensive and unbiased small-cap barometer, and it is reconstituted annually.

Use in financial markets

Investors, analysts, and fund managers use the Russell 2000 as a benchmark for small-cap performance. It is often compared with larger-cap indices such as the S&P 500 Index to show differences between market segments.

History

The Russell 2000 was launched in 1984 by the Frank Russell Company. It is now part of the Russell index family managed by FTSE Russell.

Key facts

  • The index tracks the performance of the smallest roughly 2,000 companies in the Russell 3000 Index.
  • It is one of the main benchmarks for U.S. small-cap stocks.
  • FTSE Russell, a subsidiary of the London Stock Exchange Group, maintains the index.
  • The index was created in 1984 by the Frank Russell Company.
  • It is market-capitalization weighted.
🍁
Canadian context

Canadian investors commonly follow the Russell 2000 as a benchmark for U.S. small-cap market performance and as a comparison point against Canadian and U.S. equity funds with small-cap exposure.

Frequently asked questions

What does the Russell 2000 measure?
It measures the performance of about 2,000 of the smallest U.S. publicly traded companies in the Russell 3000 Index.
Why is it called the Russell 2000?
The name refers to its roughly 2,000 constituents and its place in the Russell index family.
Is the Russell 2000 a small-cap index?
Yes. It is widely recognized as a benchmark for U.S. small-cap stocks.
Who maintains the Russell 2000?
FTSE Russell maintains the index.
When was the Russell 2000 created?
It was created in 1984 by the Frank Russell Company.

References

  1. Wikipedia — https://en.wikipedia.org/wiki/Russell_2000_Index
    Supports: States that the Russell 2000 is a small-cap U.S. stock market index made up of the smallest 2,000 stocks in the Russell 3000 Index, started in 1984 and maintained by FTSE Russell.
  2. LSEG / FTSE Russell — https://www.lseg.com/en/ftse-russell/indices/russell-2000-index
    Supports: Describes the Russell 2000 as measuring the small-cap segment of the U.S. equity universe, including approximately 2,000 smallest securities, and notes annual reconstitution.
  3. LSEG / FTSE Russell — https://www.lseg.com/content/dam/ftse-russell/en_us/documents/other/russell-2000-index-overview.pdf
    Supports: Lists the Russell 2000 as a premier small-cap U.S. equities index with 1984 as the launch year and approximately 2,000 small-cap U.S. equities.
  4. Fidelity — https://www.fidelity.com/learning-center/smart-money/what-is-the-russell-2000
    Supports: Explains that the index tracks about 2,000 U.S. small-cap stocks and is based on the Russell 3000.