The Russell 3000 Index is a very broad equity index made up of the 3000 largest publicly traded companies in the US The components of the Russell 3000 Index account for nearly 98% of the market capitalization in the United States. All listed stocks are incorporated in the US The Russell 3000 Index was designed to be a benchmark of the overall total market.
The index is made up of the Russell 1000 and the Russell 2000. The Russell 1000 is made up of the 1000 largest market cap stocks and the 2000 are the remaining small cap stocks. Market capitalization is the value of a company equal to the price of the shares multiplied by the number of shares outstanding.
The index is maintained by Russell Investment Group and is updated annually. The index is weighted by market capitalization, with larger companies being more influential. Large international companies are disqualified from membership in the Russell 3000 Index. The index was created on December 31, 1986 with a base value of $ 140. As of January 1, 2011, the index is valued at approximately $ 750 per share.
The Wilshire 5000 is another total market index. This broad index of stocks includes many smaller companies that are barely marketable. The Russell 3000 is considered by some to be a more accurate benchmark of overall market conditions. The Wilshire 5000 continues to be more popular. Both indices are monitored by most major institutions, including the Federal Reserve Board.
The ticker symbol for the Russell 3000 Index is ^ RUA. There are many exchange-traded funds (ETFs) that follow the Russell 1000 and Russell 2000. The ticker for the iShares Russell 3000 Index ETF is IWV and is listed on the New York Stock Exchange. This fund is related to the overall performance of the Russell 3000 Index fund. As of January 1, 2011, this fund is trading at approximately $ 75 per share.
Almost all investors follow a stock market index, as most stocks tend to move with the general market. The most popular are the Standard and Poors 500 (S & P-500) and the Dow Jones 30 (DJ-30), which is a price-weighted index. These indices are intensively traded and followed by investors around the world.
Some of the major Russell 3000 holdings are Exon Mobile, Apple Inc, and Microsoft Corporation. The largest sectors covered by this fund are the financial services and technology sectors, each accounting for approximately 17% of the total fund. Futures and options trading are available on the Russell 3000 index.