Russell 3000 Index

The Russell 3000 Index is a great example of an index that seeks more comprehensive inclusion of U.S. Companies. It includes the 3000 largest publicly traded companies (nearly 98 percent of publicly traded stocks). The Russel 3000 is important because it includes many mid-cap and small-cap stocks. Most companies covered in the Russell 3000 have an average market value of a billion dollars or less.

The Frank Russell Company created the Russell 3000 Index and actually computes a series of indexes such as the Russell 1000 and the Russell 2000. The Russell 2000, for example contains the smallest 2000 companies from the Russell 3000, while the Russell 1000 contains the largest 1000 companies. The Russell indexes don’t cover micro cap stocks (companies with a market capitalization under $250 million).

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