Russell 2000 Index Shares

The Russell 2000 Index was created in 1984 by Frank Russell Company and was designed to track the performance of small-cap companies. Russell 2000 Index ETF (Exchange Traded Fund), trading exclusively at the AMEX Exchange, make it simple to participate in the small-cap market.

The weighted average market capitalization for companies in the Russell 2000 is about US$1 billion and the index itself is considered to be the benchmark for all small cap mutual funds.

The Russell 2000 serves as a good benchmark for small-cap investments, and index funds based on it have done quite well.

The popularity of the Russell 2000 as a small-cap benchmark leads to four fundamental reasons for using RUT options:

Exchange Traded Funds (ETFs) & iShares

About Russell 2000 Index Funds & ETFs

Investors are able to trade a broad market by making one Russell 2000 Index ETF (Exchange Traded Fund) trading decision rather than making the many decisions involved with investing in numerous individual stocks.

Insurance

Russell 2000 Index ETFs (Exchange Traded Funds) offer a convenient and easy way to help reduce the market risk of a broad market portfolio of many small-cap stocks, without disrupting the make-up of the portfolio.

Leverage

Purchasing Russell 2000 Index ETFs, instead of buying or selling thousands of individual stocks, provides an investor with an additional opportunity to use investment capital elsewhere. For a relatively small percentage gain in the underlying index, a Russell 2000 Index ETFs can increase in value by a multiple of that gain.

Start using our Professional Charts
and Make Money with our System!

Sign up for a Free Trial Now!
(credit card not required)