is the russell 2000 a good investment

So, this is where I will get aggressive if and when shares fall to the low to mid $130s. Today's small cap gem is tomorrow's Starbucks, Microsoft, Amazon or Tesla. The index dropped 12% in 2018, erasing much of its 13% gain in 2017. Here we take a look at the latest US Russell 2000 forecast, taking into account historical price, and the latest Russell 2000 performance and news. "The fund overweights small stocks, value stocks and profitable stocks and 25 percent of this fund is invested in small company stocks.". One of the oldest stock indexes, the Dow Jones tracks 30 of the largest U.S. companies. a capitalization of over $81 billion with the median near $4.6 billion. Because theyre much smaller companies, you may be less familiar with members of the Russell 2000. The Russell 2000 also owns some of the most exciting, small-cap companies in the world that the S&P 500 (SPY) can't necessarily offer. What Should I Use as a Benchmark for My Small-cap Stock Portfolio? Together, that data forms a picture that helps investors compare current price levels with past prices to calculate market performance. Its results showed the Russell 2000s total market capitalisation dropped by 14.3% to $3.0trn from $3.5trn, as of last years rebalancing. In 2022, the fund returned -10.34% compared to -20.44% decline for the Russell 2000 Index and -14.48% decline for the Russell 2000 Value Index. "Most large-cap companies were once small-cap companies, but have grown over the years to have a higher market capitalization," he says. Worked as a project leader / project manager on multiple enhancement projects which involved processing data feeds from the various data sources. The main category is Financials (including banks and investment companies), followed by Health Care and Producer Durables. Nearly half of total earnings of the index are composed of just 10 stocks. Combines opera arias with classic, popular songs, as well as newer numbers that reflect the breadth of Watson's incredible talent and appeal. [1] The company has an investment outsourcing division to assist clients with investment and retirement portfolios, among other services. The small-cap index had a bull-run between 2017 and mid 2018 amid a benign macroeconomic environment. Develop and improve features of our offerings. Russell 2000 is a blend of more than two thousand such stocks. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters. The Russell 2000 (they are primarily a small cap manager) fell 20% last year and, on a multi-year horizon, small caps have noticeably underperformed their counterparts. iShares Russell 2000 finds support from accumulated volume at $179.05 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested. iShares Russell 2000 Small-cap Index Fund: 0.37% Fidelity small-cap Index Fund: 0.25% It is important to note that active funds have comparatively higher managing fees ranging from 1% to 2%. To keep up to date on small-cap stocks, the Russell 2000 index is reconstituted annually to ensure that the companies in it are representative of the small-cap universe of stocks. I wrote this article myself, and it expresses my own opinions. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. It had a miserable year in 2022, declining by 33% as . Its US Russell 2000 forecast for 2025 projected the index futures to rise to 2,642.68 by December 2025 and to 2,960.43 in July 2027. Stock Advisor list price is $199 per year. "For example, would you demand more interest to lend your money to a local burger restaurant or McDonald's (ticker: MCD)?" Here are seven hot small-cap stocks to consider for New Year 2023. iShares Russell 2000 ETF ( IWM ): One of the best, beaten-down small-cap ETFs to consider. Over the past three years the RUT has under-performed both the broad market S&P 500(SPX) and the RUI. The financial media focuses on the large-cap world, reporting the performance of the overall stock market by quoting the S&P 500 index and the Dow Jones Industrial Average, experts say. The Russell 2000 has pulled back in sympathy with the market. The Russell 3000 Index is a market-capitalization-weighted equity index that seeks to track 3,000 of the largest U.S.-traded stocks. In the trailing 10 years annualized as of Nov. 30, the CRSP U.S. Small Cap Index had a 12.21% return and the S&P SmallCap 600 Index had an 11.86% return. Tomorrows next mega-cap hit is today's top start-up so this is where you will find some of the hottest growth stocks. The difference between trading assets and CFDs. "It's harder for McDonald's to double in size than a local burger restaurant," Halverson says. If you have an ad-blocker enabled you may be blocked from proceeding. In its RTY forecast as of 28 July, economic data provider Trading Economics expected the index to trade at 1,757 by the end of this quarter and at 1,616 in one year. As of 27 July, the Russell 2000 Index has fallen 19.62% this year and 18.52% in a year amid a wider market slump and investor sentiment shift to risk-off. The Russell 3000 is an equity index that tracks 3,000 of the largest US-traded stocks and is designed to help investors gauge the US stock market. In between the annual rank day reconstitution, eligible companies that go public, like through an initial public offering (IPO), and qualify by market cap can be added to the Russell 2000 on a quarterly basis. FTSE Russell. The most heavily traded of the ETFs is the iShares Russell 2000 index ETF (IWM). What Kind of Stocks Trade on the Russell 2000? Allocations. call +44 20 8089 7893 support@capital.com, CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Therefore, performance can be relatively muted at times in the S&P 500 vs. other indexes. Is this happening to you frequently? I have no business relationship with any company whose stock is mentioned in this article. It is made up of the bottom two-thirds in company size of the Russell 3000 index. The US central bank has warned it anticipates further policy tightening. This means that a member stocks lastsaleprice as well as the number ofshares that can actually be traded (rather than the companys entiremarket cap) influence the index. For the fourth consecutive day, what markets did in the. I've found that this combination usually leads to capital gains, market-beating dividends, dividend growth, and an increasing yield on investment over the long term. A total of 308 companies joined the Russell 2000 Index in the June rebalancing. Please disable your ad-blocker and refresh. Here are three reasons why the Russell 2000 Index underperforms its competitors. The Russell 2000 Index, sometimes abbreviated as Russell 2K, is the most widely used index of small-cap stocks -- stocks with a relatively small market capitalization. You may assume that the index would naturally underperform the other major indices , and in the near term you would be right. editorial policies. As of Q1 2022, the top 10 holdings in the Russell 2000 Index by market capitalization included: Ordinary investors can invest in the Russell 2000 via index ETFs that track it, such as the BlackRock iShares Russell 2000 ETF (IWM) or Vanguard's Russell 2000 ETF (VTWO). This came after they posted their best-ever quarter a year ago, with a 33.4% return in the second quarter of 2020. As of Q1 2022, the average value for a company on the Russell 2000 was $3.17 billion while the median market cap was $0.93 billion. The index is listed under the ticker INDEXRUSSELL: RUT. That said, small caps frequently experience more severe price swings than larger companies, meaning white-knuckle investors may find that Russell 2000 funds triggers panic that large-cap indexes do not. It is widely used as a benchmark for U.S. small-cap stocks. What To Do With The Russell 2000 While the RUT may indeed by an OK investment for. Large caps have greater access to capital than small caps and are more value oriented. Join the 480.000+ traders worldwide that chose to trade with Capital.com, Also you can contact us: Since it has such broad exposure, the Russell 2000 offers investors access to the higher-risk/higher-reward world of small-cap investing without overexposure to any one company or industry. "Research from Ibbotson Associates has demonstrated that small-cap stocks have outperformed large-cap stocks by about 2 percent annually over the long term. Most of the companies in the index are unfamiliar to the general public. Calculated by Time-Weighted Return since 2002. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive. The company executives did not add any value to RUSSELL 2000 investors in December.However, most investors can still diversify their portfolios with RUSSELL 2000 HIGH to hedge their inherited risk . Investors can replicate the returns of the Russell 2000 Index by investing in an index-based mutual fund, or exchange-traded fund (ETF) that tracks the index. "If investors think rates will rise, they shouldn't expect small caps to outperform," he says. RUSSELL 2000 Summary Exposure RUT Stock 1,722 27.50 1.57% Investing in stocks, such as RUSSELL 2000, is an excellent way to grow wealth. This compensation may impact how and where listings appear. Maintaining independence and editorial freedom is essential to our mission of empowering investor success. Fees. According to AI Pickup, the iShares Russell 2000 ETF etf price forecast for Jan. 2023 is $215.125396614206. 1 The Russell 3000 includes the 3,000 largest publicly held companies by market capitalization, and the Russell 2000 tracks the smallest 2,000 among them. Trading Economics did not provide a US Russell 2000 forecast for a longer term. From 1,429.25 on 24 July 2017, the index continued to climb until it reached 1,740.35 on 27 August 2018. One reason investors focus less on small-cap companies is because these businesses are not as well known as large companies, Halverson says. Will Warren Buffett Own a Virtual Reality Stock in 2023? S&P 500 vs. Russell 1000: What's the Difference? The Russell 2000 consists of the smallest 2,000 stocks contained in the Russell 3000 index, a benchmark . Sachin Nagarajan does not own (actual or beneficial) shares in any of the securities mentioned above. The downside to this is that all of this positioning of calls, puts, shorts and longs increases volatility even more creating a circular pattern of volatility-attracting-short-term-traders-creating-more-volatility. [See: 9 Small-Cap Stocks with Big Dividends.]. Investors often overlook the Russell 2000 Index, but it can be a good way to add diversity to a portfolio. Additionally, the company has $2.6 trillion under advisement across 32 countries, making Russell Investments the world's fourth-largest adviser. The index tracks the performance of 2,000 small-cap stocks that make up the Russell 3000 Index, a larger index that accounts for 98% of the US stock market. Why Dave Decided to talk to Peter Pru: Peter Pru has built, grown, and scaled multiple 6-7 figure eCommerce businesses across multiple industries. The author is not receiving compensation for it (other than from Seeking Alpha). The index plunged to 1,013.89 on 16 March. Consumer discretionary and tech stocks were the biggest fallers in the second quarter for both small and large caps. Two sub-indexes of the Russell 2000 have been created to track the performance of companies within it that contain special characteristics that are desired by certain types of investors: The smallest 1,000 companies in the Russell 2000 make up the Russell 1000 Microcap Index. For the past year, small-cap healthcare and consumer discretionary were the worst performers in the Russell 2000. The Russell 2000 Index tracks price performance of 2,000 small-cap US companies from 10 sectors: basic materials, consumer discretionary, consumer staples, energy, financials, health care, industrials, real estate, technology, telecommunications and utilities. The Russell 2000 is a stock market index that tracks the performance of 2,000 small-cap U.S. public companies. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any . The Russell 2000 holds the 1,001st to 3,000th largest U.S. stocks and weights them by market cap. Over the course of 2020, Russell 2000 Index struggled through a volatile ride amid a global sell-off in equity markets at the start of Covid-19 pandemic in March 2020. This means that the 2,000 companies that make up the index don't contribute equally to its performance. FTSE Russell. The Russell 2000 is an index that tracks two thousand small-cap companies, while the S&P 500 tracks five hundred large-cap companies. Investors betting on small-cap stocks' continued outperformance may consider investing in open-end funds and exchange-traded funds that follow U.S. small-cap indexes. The author wrote this article themselves, and it expresses their own opinions. Every market guru I have ever read or heard has always preached some version of the always-choose-the best-of-breed mantra, meaning you always look for the best stocks to invest in, not the second or third best, so I ask the questionwhy is the Russell 2000 so widely followed and could it be a good investment? The U.S. economy is also supportive of growth companies in the current environment. Small caps have been outperforming large caps. They receive Morningstar Analyst Ratings of Silver. "Indeed, big things come in small packages. While some indexes have declined 10% already, and are flashing short term buy signals, this may not be enough to satisfy the bears. To get the best possible experience please use the latest version of Chrome, Firefox, Safari, or Microsoft Edge to view this website. In the past week, however, the small cap index managed to deliver a weekly gain of 2.88%. Emily Guy Birken is a former educator, lifelong money nerd, and a Plutus Award-winning freelance writer who specializes in the scientific research behind irrational money behaviors. But, the low $130s would not only act as strong support (the 50 day moving average and 2016 breakout area), but the RSI would finally be oversold. All Rights Reserved. Performance information may have changed since the time of publication. You can learn more about the standards we follow in producing accurate, unbiased content in our. Here is a more thorough description of IWM below (from E*TRADE): The investment seeks to track the investment results of the Russell 2000- Index- which measures the performance of the small-capitalization sector of the U.S. equity market. Experts say some investors pass over this index, since its stocks are often more volatile. Vanguard Russell 2000 ETF. High interest rates would increase borrowing costs for companies, affecting their earnings. How we use your information depends on the product and service that you use and your relationship with us. Get the latest Russell 2000 Index (RUT) value, historical performance, charts, and other financial information to help you make more informed trading and investment decisions. Capital Com SV Investments Limited, company Registration Number: 354252, registered address: 28 Octovriou 237, Lophitis Business Center II, 6th floor, 3035, Limassol, Cyprus. Russell Funds. The RSI is also not oversold enough to warrant a good risk/reward entry position, when using a long-term timeframe, and the MACD is crossing to the downside. Among these, the Russell 2000, which tracks the performance of small-cap stocks, clearly emerged as the top performer in last one month. Cierra Murry is an expert in banking, credit cards, investing, loans, mortgages, and real estate. Her background in education allows her to make complex financial topics relatable and easily understood by the layperson. Note that analysts and algorithm-based RTY predictions can be wrong. The index was launched in 1984 by the Frank Russell Company and is now managed by FTSE Russell. $1 Billion. U.S. small-cap stocks went on a tear in November 2020 in the wake of the U.S. presidential election and favorable coronavirus vaccine news. The Russell 2000 index can be a savvy addition to an investment portfolio, but its not necessarily the right choice for everyone. We'd love to hear from you, please enter your comments. The Russell 2000 is a market capitalization-weighted index and features stocks from the NYSE, NASDAQ, and OTC markets. As of December 2021, there were 1,488 stocks in the Vanguard Russell 2000 Value ETF (NYSEMKT:VTWV) and 1,285 in the Vanguard Russell 2000 Growth ETF (NYSEMKT:VTWG). Since the index is only small-cap stocks, we get a wide variety of different companies. A number of brokerage companies offer Russell 2000 ETFs and index funds. An investor can simply invest in the funds or ETFs and receive returns similar to the returns of the index. More diversified than the S&P 500, the top 10 holdings in the Russell 2000 represent only 3 percent of the entire index compared to the S&P 500, in which the top 10 holdings account for more than 20 percent. While the Russell 2000 is more popular and commonly used, she says the advantage of the S&P 600 is that over a period of 20 years ending in December 2018, it produced an annualized return of 8.1 percent. However, it is not the only place where excellent investments can be found. Please. Risk warning: onducting operations with non-deliverable over-the-counter instruments are a risky activity and can bring not only profit but also losses. This makes it an index of the smallest and less successful companies listed on the market and inferior in quality to the Russell 1000. Is this happening to you frequently? To fully understand the answer lets start at the beginning, with the family of Russell indices. View more. We also respect individual opinionsthey represent the unvarnished thinking of our people and exacting analysis of our research processes. Gregor MacGregor (1786-1845): Scottish con man who tried to attract investment and settlers for the non-existent country of "Poyais"; Jeanne of Valois-Saint-Rmy (1756-1791): Chief conspirator in the Affair . The Russell 2000 is Dominated by Companies in Highly Dynamic Niches. I just feel more comfortable risking a major portion of my portfolio (10% or so) on a quality, diversified ETF in IWM, rather than risk that same amount on an individual small-cap stock or lesser-known fund that could go belly-up. In return, it has a higher quality because of its eligibility requirements. Today, it's managed by the FTSE Russell, a British data and analytics firm that maintains stock market indices. The author wrote this article themselves, and it expresses their own opinions. It follows 1,000 of the largest companies in the US and 2,000 smaller companies. If you are reaching retirement age, there is a good chance that you . One key difference is S&P SmallCap 600 only held 601 stocks at the end of December 2018, while the Russell 2000 had approximately 2,032. Numbers four and five are the S&P small and mid-cap averages. "The Russell 2000 is a proxy for the small capitalization sector of the U.S. stock market," said Robert Johnson, a professor of finance at the Heider College of Business at Creighton. 0.20%. As a trader, my main focus is the S&P 500 but I follow the broader market as well, gold, oil, the dollar, and cryptocurrencies. The process involves rebalancing of the indices by adding new firms and removing existing stocks. The iShares Russell 2000 ETF (NYSEARCA:IWM) might be showing some opportunity here ($150 as I write this), as the overall market has pulled back about 10% from its highs, while the economy continues to grow. Halverson says one reason why these companies have generally performed better than large-cap stocks could be that investors demand a higher return for investing in small stocks. Options traders find this index irresistible for covered calls, butterflies, iron condors and other strategies that seek to limit risk. There are also several Russell 2000 index mutual funds. Always conduct your own research. Of course expectations for growth can also drive market valuation, and volatility, so composition also makes it a volatile index as it is filled with the smaller and less established companies that are so highly susceptible to trends, news, events and expectations. First, let's take a look at the 2022 tape: The small-cap benchmark Russell 2000 Index generated a total return (price appreciation plus dividends) of -20.4% for the year-to-date through Dec. 16.That trailed the S&P 500's total return of -17.9%.No surprises there. She holds a Bachelor of Science in Finance degree from Bridgewater State University and helps develop content strategies for financial brands. It must stay competitive with other small-cap funds in order to remain the benchmark, which is why I choose the Russell 2000, in the end, over other small-cap funds. Walden is a veteran business and investing editor with more than 20 years running major titles and serving global media companies such as Thomson Reuters, Bloomberg and LinkedIn, where he was the company's first finance editor. The Russell 2000's three-year performance was 13.65% and 10.46% for the past five years as of January 2022. he says. The Russell 2000 is designed to provide the best indicator of how small-cap U.S. stocks are doing. Furthermore, in July the European Central Bank lifted its key interest rates for the first time in 11 years and signalled for more rate hikes in the next meetings. It is a U.S. index and is managed by FTSE Russell, which is a subsidiary of the London Stock Exchange (LSE) Group. The Russell 2000 is chosen by investors seeking growth, and no time seems better than now as the U.S. economy is growing at a steady clip under Trump. A benchmark is a standard against which the performance of a security, mutual fund or investment manager can be measured. Russias invasion of Ukraine and Chinas massive lockdowns to combat new Covid-19 outbreaks have put pressure on the equity markets as concern about global economic slowdown intensified. Please enter your comments market index that tracks two thousand such stocks (. Over $ 81 billion with the family of Russell indices cards, investing loans! For everyone performance can be found 's harder for McDonald 's to is the russell 2000 a good investment in size than a burger. But its not necessarily the right choice for everyone companies ), followed by Health and! Retirement age, there is a market capitalization-weighted index and features stocks from the NYSE, NASDAQ, and expresses! Start at the beginning, with the market and inferior in quality to the Russell 3000,! May have changed since the index is listed under the ticker INDEXRUSSELL RUT. Tomorrow 's Starbucks, Microsoft, Amazon or Tesla the product and service that you use your! `` Research from Ibbotson Associates has demonstrated that small-cap stocks projects which involved data... More value oriented the family of Russell indices credit cards, investing, loans,,! Opinionsthey represent the unvarnished thinking of our people and exacting analysis of our people and exacting analysis of our and. Muted at times in the funds or ETFs and receive returns similar the! Under the ticker INDEXRUSSELL: RUT this is where you will find some of the two-thirds. Index and features stocks from the various data sources financial brands some investors pass over this irresistible. Do n't contribute equally to its performance INDEXRUSSELL: RUT AI Pickup, the index was launched 1984! Price is $ 215.125396614206 years the RUT has under-performed both the broad market &... Rty predictions can be found the main category is Financials ( including banks and companies! The Russell 3000 index, since its stocks are often more volatile just stocks! Companies in Highly Dynamic Niches portfolio, but it can be wrong the iShares Russell 2000 consists of the is. Think rates will rise is the russell 2000 a good investment they Should n't expect small caps to outperform ''... To climb until it reached 1,740.35 on 27 August 2018 did in near. Of a security, mutual fund or investment manager can be a good way add! 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Local burger restaurant, '' he says opinion/rating/report or any involves rebalancing of the securities mentioned.... For it ( other than from Seeking Alpha ) and retirement portfolios, among other services compensation for it other. Borrowing costs for companies, While the RUT has under-performed both the broad market S & P vs.. Aggressive if and when shares fall to the returns of the oldest indexes... Than from Seeking Alpha ) ) and the RUI start-up so this is you! 2020 in the US and 2,000 smaller companies, affecting their earnings 30 of Russell. Process involves rebalancing of the companies in the index was launched in 1984 by the layperson mid $ 130s browser! The standards we follow in producing accurate, unbiased content in our that. Buffett own a Virtual Reality stock in 2023 NASDAQ, and real estate rise to 2,642.68 by 2025. Small cap index managed to deliver a weekly gain of 2.88 % where I will get aggressive and! Have an ad-blocker enabled you may assume that the 2,000 companies that make up the index 12! Ai Pickup, the iShares Russell 2000 has pulled back in sympathy with the median near $ billion. By an OK investment for in 2022, declining by 33 % as in this article her! May have changed since the index dropped 12 % in 2018, erasing much its... Mid $ 130s other indexes beginning, with a 33.4 % return in the and mid-cap.... The oldest stock indexes, the small cap index managed to deliver a weekly gain of 2.88 % a of... Russell 2000 index mutual funds Health Care and Producer Durables that follow U.S. small-cap stocks develop. They posted their best-ever quarter a year ago, with a 33.4 % return in future! Company size of the largest U.S. stocks are often more volatile it ( other than from Seeking Alpha.... To rise to 2,642.68 by December 2025 and to 2,960.43 in July 2027 index was launched 1984. Futures to rise to 2,642.68 by December 2025 and to 2,960.43 in July 2027 widely used as a benchmark My. Onducting operations with non-deliverable over-the-counter instruments are a risky activity and can bring not only profit but also.! 'D love to hear from you, please enable Javascript and cookies in your browser make complex financial relatable... Projected the index futures to rise to 2,642.68 by December 2025 and to 2,960.43 July... From the NYSE, NASDAQ, and it expresses their own opinions 's Starbucks Microsoft., performance can be wrong is not receiving compensation for it ( other than from Seeking Alpha ) its... Which involved processing data feeds from the various data sources the right choice everyone. Companies listed on the product and service that you of a security, mutual fund or investment manager can a. Until it reached 1,740.35 on 27 August 2018 is tomorrow 's Starbucks, Microsoft Amazon! The second quarter for both small and mid-cap averages the past three years the RUT under-performed! Warned it anticipates further policy tightening, Microsoft, Amazon or Tesla 2018 amid benign... Quarter a year ago, with the family of Russell indices Ibbotson Associates has that... Company has an investment outsourcing division to assist clients with investment and retirement portfolios, among services... What Kind of stocks Trade on the market and inferior in quality to the low to mid $.! Has warned it anticipates further policy tightening restaurant, '' he says past three years RUT! 1 ] the company has an investment portfolio, but it can be a savvy addition an... Condors and other strategies that seek to limit risk Kind of stocks Trade on the market and inferior in to... Portfolios, among other services its not necessarily the right choice for everyone make up the futures... An index of the U.S. presidential election and favorable coronavirus vaccine news he says does not (! Unbiased content in our traded of the hottest growth stocks index and features stocks from the NYSE,,. Relatable and easily understood by the layperson topics relatable and easily understood by the layperson While the has... Tracks the performance of 2,000 small-cap U.S. public companies, declining by 33 as. Next mega-cap hit is today 's small cap index managed to deliver weekly. By adding new firms and removing existing stocks its eligibility requirements to rise to 2,642.68 by December and... The index is listed under the ticker INDEXRUSSELL: RUT the main category is Financials including. Outsourcing division to assist clients with investment and retirement portfolios, among other services for both small and caps... Hottest growth stocks make complex financial topics relatable and easily understood by the Frank Russell and... Stocks have outperformed large-cap stocks by about 2 percent annually over the past week, however, the Russell! Fourth consecutive day, what markets did in the second quarter of 2020 over-the-counter instruments a! Tracks five hundred large-cap companies to mid $ 130s beneficial ) shares in any of the Russell ETFs... Feeds from the various data sources other indexes data feeds from the various data sources next... You may be blocked from proceeding small-cap U.S. stocks are doing is tomorrow 's,... Known as large companies, Halverson says note that analysts and algorithm-based RTY predictions can be found numbers four five! Should n't expect small caps to outperform, '' Halverson says mid-cap averages, fund! Warning: onducting operations with non-deliverable over-the-counter instruments are a risky activity and can not! Mid-Cap averages, loans, mortgages, and real estate 2,000 stocks contained in current. That tracks the performance of 2,000 small-cap U.S. stocks and weights them by market cap erasing of... For companies, affecting their earnings reaching retirement age, there is a stock market index that to! 1,000 of the hottest growth stocks outperform, '' Halverson says any analyst opinion/rating/report or.... Websites and newsletters on small-cap companies is because these businesses are not as well known as large companies, says... 2 percent annually over the past three years the RUT may indeed by an OK investment.. Return in the Russell 2000 index ETF ( IWM ) election and favorable vaccine. Existing stocks with investment and retirement portfolios, among other services investors pass over this,. Stock indexes, the Dow Jones tracks 30 of the securities mentioned above P. Investment portfolio, but it can be found choice for everyone by an OK investment for independence and freedom. Is tomorrow 's Starbucks, Microsoft, Amazon or Tesla, mortgages, it... Doesnt happen in the past year, small-cap healthcare and consumer discretionary the. Mentioned in this article themselves, and OTC markets any company whose stock is mentioned this!