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Learn more about the Russell 2000 index

Russell 2000 is a small index in the stock market consisting of 2000 shares in the Russell 3000 index.

Moreover, is the most common standard for mutual funds that define themselves as “small”, while the S & P 500 is mainly used for large stocks.

Started by Frank Russell Company in 1984.

It is linked to OTC Markets, NASDAQ and NYSE
The index is maintained by FTSE Russell, a subsidiary of the London Stock Exchange.
The index represents about 8% of the total Russell 3000 index.
The weighted value method is used for the free shares of this indicator.
On February 28, 2019, the weighted average market value of a company in the index was about $ 2.43 billion; the market cap is $ 818 million.
The market capitalization of the largest company in the index is 8.65 billion dollars.
Russell 2000 Index ETF’s biggest index is iShares Russell 2000 ETF IWM, with assets of $ 43.04 billion.
Another ETF launched in this Index was Direxion Daily Small Cap Bull 2X Shares SMLL on 07/29/14.

Why is the Russell 2000 index traded across CFDs?

  • Traders can enjoy the trading of derivatives by tracking the (bullish or bearish) levels of the Russell 2000 index
  • Traders can enjoy several trading platforms, such as: trading via the browser, trading with the phone, through the Mac, automated trading platform MetaTrader 4
  • it has a 0.30 index on the market, with a leverage of 400: 1
    Traders can make a profit even when the market price falls on the Russell 2000 index short selling
  • AvaTrade does not charge any commissions for 2000 Russell Contracts

Top 10 Composed For Russell 2000 Index

company Industry the weight(%)
Cascadian Therapeutics Incorporated Biotechnology 0.007%
Eastman Kodak Company Technology 0.006%
Atara Biotherapeutics Biotechnology 0.021%
Iovance Biotherapeutics Biotechnology 0.020%
Jounce Therapeutics Healthcare 0.011%
RAIT Financial Trust Financial Services 0.003%
Novelion Therapautics Biopharmaceuticals 0.005%
Novavax Biotechnology 0.016%
Madrigal Pharmaceuticals Biotechnology 0.009%
PTC Therapeutics pharmaceutical 0.039%

There are many pieces that are Russell 2000 including:

  • Financial Services
  • Healthcare
  • Durable product
  • Technology
  • Consumer Products

Risks of adding Russell 2000 funds

  • Have greater access to capital than others and are more value-oriented. But smaller companies have a higher growth trend.
  • For risk averse investors, higher value stocks tend to achieve greater margin of safety than growth stocks, experts say.
  • Although small cap stocks can be more volatile than large-cap stocks, securities portfolios are “generally better in terms of small stocks than they are,” Halverson says.

    The best way to access small cap stocks is through a fund like Dimensional Core 2

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