The Russell 3000 Index is part of the FTSE Russell that provides exposure to the U.S. stock market. Its date of inception was Jan. 1, 1984. The index measures the performance of the largest 3,000 U.S. companies (give or take) representing approximately 96% of the investable U.S. equity market.

Understanding the Russell 3000 Index

The Russell 3000 Index is a building block for the large-cap 澳洲幸运5官方开奖结果体彩网:Russell 1000 and the small-cap 澳洲幸运5官方开奖结果体彩网:Russell 2000 indexes. The largest 1,000 stocks indexed in the Russell 3000 constitute the Russell 1000, while the Russell 2000 is a subset of the smallest 2,000 components of the Russell 3000.

The Russell 3000 Index is constructed to provide a comprehensive, unbiased, and stable 澳洲幸运5官方开奖结果体彩网:barometerꦛ of the broad market and is reconstituted annually to ensure that new and growing equities are included. Securities in the financi🍬al, consumer discretionary, healthcare, and technology sectors represent a significant portion of the underlying index.

Russell 3000 Top 11 Holdings

Russell Index 3000 Reconstitution

The Russell U.S. Indexes are designed to reflect the 澳洲幸运5官方开奖结果体彩网:ever-changing U.S. equity market, and the annual 澳洲幸运5官方开奖结果体彩网:reconstitution process is critical to maintaining accurate re🗹presentation. Wh🅷en the indexes are reconstituted, the breakpoints among large-cap, mid-cap, and small-cap stocks are redefined to ensure market changes that have occurred in the preceding year are captured.

Companies are evaluated to determine where they lie along the investment spectrum from 澳洲幸运5官方开奖结果体彩网:value to growth. Companies will be added to, removed, or swapped among the Russell 3000, 2000, and 1000. Stocks in the Russell 3000 index are reconstituted once a year, on the last Friday in June.

Investing in the Russell 3000 Index

FTSE Russell Group does not offer direct investment opportunities. Investors can purchase individual shares of each company represented in the Russell 3000 index, but many financial institutions offer 澳洲幸运5官方开奖结果体彩网:exchange-traded funds (ETFs) or index funds that mimic the performance of the Russell 3000 and contain its component stocks.

Russell 3000 vs. Other Indexes

The 澳洲幸运5官方开奖结果体彩网:S&P 500 Index tracks the largest 500 publicly traded companies, with exposure to 80% of U.S. stocks, compared to the Russell 3000’s 96%. The 澳洲幸运5官方开奖结果体彩网:Dow 🦹Jones Industrial Average (DJIA) measures the performance of 30 large companies covering all sectors except transportation and utilities.

The 澳洲幸运5官方开奖结果体彩网:Nasdaq Composite Index measures stocks listed exclusively on the Nasdaq exchange. There are over 3,000 securities listed on the Nasdaq composite, which gives it a broader exposure than the S&P 500 or the DJIA but weighs heavily in the technology sector.

Limitations of the Russell 3000 Index

• Large-cap stocks direct a majority of the index’s performance, and the returns of other segments are overlooked.
• Limits an investor's portfolio to domestic stocks without investment in other assets.
• The index data is only updated quarterly or annually.

The Bottom Line

The Russell 3000 Index, established in 1984, measures the performance of the largest 3,000 U.S. companies, representing approximately 96% of the investable U.S. equity market. Large-cap stocks direct the index’s performance and include holdings such as Apple, Microsoft, and Meta.