If You Want To Invest In the Stock Market, You Should Invest In the Russell 2000….

I have been wanting to write an article about the Russell 2000 for sometime. The Russell 2000 could be renamed “America First 2000” because it is comprised of US companies only.

This article was written on July 7, 2017. Approximately 6 months into PDJT’s presidency.

https://www.tradingfloor.com/posts/product-focus-how-to-trade-america-first-with-russell-2000-futures-8793617

From the article linked above:

US small-cap stocks have gone largely unnoticed by global investors, but the Trump administration’s “America First” doctrine has given smaller companies a boost, and futures and options on the widely watched Russell 2000 small-cap index could offer new opportunities for trading and portfolio hedging.

What is the Russell 2000 Index? 
 
The Russell 2000 Index is a small-cap stock market index and is used to measure the performance of 2000 publicly traded US companies. The “cap” (or capitalisation) can vary from tens of millions to five-ten billion dollars.

In the link below, you will find a list of all the different stocks within the Russell 2000.

https://www.suredividend.com/russell-2000-stocks/

From the article linked above:

The Russell 2000 Index is the world’s best-known benchmark for small cap domestic stocks. It is composed of stocks ranked 1,001 to 3,000 in terms of descending market capitalization.

Small cap stocks have historically outperformed their larger counterparts. Accordingly, the Russell 2000 Index can be an excellent place to look for new investment opportunities.

You can also invest in Mutual Funds that buy a majority of their portfolio in the Russell 2000 and S&P SmallCap 600.
From the article linked above:
In line with the performance of the small-cap index, the small-cap mutual funds also registered healthy returns – higher than the large- and mid-cap ones. Small-cap mutual funds posted an average return of 6% in last one month, while the large- and mid-cap funds registered average gains of 3.3% and 4.4%, respectively.

If you check how the Russell 2000 has done so far YTD (Year To Date) versus the big 3; DJIA, S&P 500 and Nasdaq Composite, the YTD return speaks for itself.

https://markets.wsj.com/?mod=Markets_MDW_MDC

  • Russell 2000 – 17.24%
  • DJIA – 11.39%
  • S&P 500 – 11.39%
  • Nasdaq Composite – 13.85%

Please feel free to share with family and friends.

 

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