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Russell 2000 Value Index

Moneyzine Editor
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Moneyzine Editor
1 mins
September 21st, 2023
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Definition

The term Russell 2000 Value Index refers to a composite of small cap companies located in the United States that also exhibit a value probability. The Russell 2000 Value is published and maintained by FTSE Russell.

Explanation

The Russell 2000 Index is designed to measure the performance of the small capitalization companies in the United States equities market. The index is a composite of roughly 2,000 securities issued by companies with market capitalization values averaging $2 billion. The Russell 2000 Value Index is a subset of the securities found in the Russell 2000. As of this writing, there were approximately 1,350 securities in the Russell 2000 Value Index. The stocks included in the value index are selected based on a "probability" of value as measured by their relative book-to-price (B/P) ratio.

First launched on June 1, 1993, the companies included in the index are selected based on float-adjusted market capitalization. On the last trading day of May, FSTE Russell ranks eligible companies based on their total market capitalization values. On the last Friday of June, the index is reconstituted. To be eligible for inclusion in a U.S. equity market index, the securities must trade on the NYSE, NYSE MKT, NASDAQ, or ARCA exchanges. The performance of this index can be monitored via the Bloomberg EFT ticker symbol RU20VATR.

Related Terms

Russell 2500 Value, Russell 2500 Growth, Russell 2500, Russell 2000 Growth

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