📕 Investment Dictionary

Russell 3000 Index

What Is the Russell 3000 Index?

The Russell 3000 Index is a stock market index that measures the performance of the 3000 largest publicly traded companies (large-cap stocks) in the United States. It is made up of a broad range of industries, and therefore is considered to be a barometer of the overall health of the US economy.

The index is used by investors as a benchmark to measure their own portfolios against, and by money managers as a tool to select stocks for investment.

Russell 3000 Fact Sheet

  • Ticker: RUA
  • Creation date: January 1, 1984.
  • Composition: Large-cap. 3000 largest publicly traded companies in the United States.
  • Weighting: capitalization-weighted index, and its components are selected by committee.
  • Exposure: the entire U.S. stock market.

Understanding the Russell 3000

The Russell 3000 Index is a market capitalization-weighted index, and its components are selected by committee. The index is intended to be a benchmark for the overall stock market, and it is used as a reference point in many financial products. The index is maintained by FTSE Russell.

Russell Index Reconstitution

Every year, in late June, Russell Investments reconstitutes its family of indexes, which includes the Russell 300 Index. This means that the index, which is made up of the largest US stocks, updates its membership to reflect changes in the stock market. In order to be eligible for inclusion in the Russell Index.

Relation with other Indexes

Particularly geared toward large and small-cap markets, the Russell 3000 Index is a vital basis for a broad array of lists of funds, including the Russell 1000 (large-cap) index, and the Russell 2000 index (small-cap stocks).

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