Exchange traded fundsĮTFs are investments that pool cash created by selling units in the fund, and investing the cash in a basket of securities – such as shares, fixed interest bonds, and commodities. Instead, you can invest in exchange traded funds (ETFs) or index funds that track the Russell 2000 or buy shares in individual companies which form the index. You can’t invest directly in the Russell 2000 by buying a share of it. This guide has everything you need to get started. There are several ways to invest in the Russell 2000: shares, ETFs, and index funds. The index was started in 1984 and is maintained by FTSE Russell, a subsidiary of the London Stock Exchange. The Russell 2000 is the main benchmark for listed companies with small to midsize capitalization. The Russell 2000 is, in fact, the lowest two-thirds of another index, the Russell 3000 (an index of 3,000 listed companies that represent about 97% of the US stock market). Stock market indexes are composite measurements of movements in the price of the stocks included in the index.Īs its name suggests, the Russell 2000 index tracks the price movements of 2,000 US shares, in this case in companies with a relatively small capitalization. The Russell 2000 is one of around 5,000 US stock market indexes used by investors and economists to get a feel for the state of US stock markets and the US economy in general. Pros and cons of investing in the Russell 2000.Easiest ways to invest in the Russell 2000.Find out what the Russell 2000 index is all about for investors.All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2019 and/or its affiliates. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. Factset: FactSet Research Systems Inc.2019. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes.