Russell 2000

A stock market index that tracks the performance of 2,000 small-cap U.S. companies, maintained by FTSE Russell. The Russell 2000 is the most widely used benchmark for small-cap stocks and is often viewed as a barometer of domestic economic health because its component companies derive a larger share of revenue from the U.S. economy compared to the multinational giants in the S&P 500. The annual Russell reconstitution in late June creates significant trading volume as index funds rebalance.