What Is the Russell 2000?
The Russell 2000 is a stock index of about 2,000 small US companies. It is the most common way to track how smaller American businesses are doing.
Why it matters
Big indexes like the S&P 500 are dominated by giants. The Russell 2000 shows the health of smaller companies, which do more of their business inside the US. Many see it as a measure of the local economy.
How it behaves
Small companies usually swing more than big ones. They often have more debt that must be refinanced, so they are sensitive to interest rates. They can jump when rates fall or the economy picks up.
How to invest in it
Through index funds or ETFs that copy it.