Russell Indices

The following information is compiled from the
Russell.com


Determining Index Membership
  • Rank the U.S. common stocks from largest to smallest market capitalization at each annual reconstitution period (May 31).
  • Top 3,000 stocks become the Russell 3000® Index.
  • Largest 1,000 stocks become the Russell 1000® Index.
  • Next 2,000 stocks become the Russell 2000® Index.
Determining Style Index Membership (Growth vs. Value)
  • Rank each stock in the Russell 1000 and Russell 2000 by two variables: the Price-to-book ratio and the I/B/E/S forecast long-term growth mean.
  • Combine variables to create a composite value score (CVS) for each stock.
  • Rank the stocks by their CVS and apply a non-linear probability algorithm to the distribution to determine style membership weights. 70% are classified as all value or all growth and 30% are weighted proportionately to both value & growth.
Exclusions
  • Stocks trading below $1.00.
  • Pink sheet and bulletin board stocks.
  • Closed-end mutual funds, limited partnerships, royalty trusts, etc.
  • Non-U.S. incorporated stocks, foreign stocks, ADRs.

Russell 3000®
IWV 		Measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market.

Typical members: GE, Exon, Microsoft, Wal-Mart, Verizon

Russell 1000®
IWB 		Measures the performance of the 1,000 largest companies in the Russell 3000 Index, and represents approximately 92% of the total market capitalization of the Russell 3000 Index.

Typical members: GE, Exon, Microsoft, Wal-Mart

The Russell 1000® Index is reconstituted completely on an annual basis to ensure the index measures the large cap segment consistently and objectively over time. Each security in the Russell 1000 is float-adjusted market capitalization-weighted to ensure investable positions.

Russell 2000®
IWM 		Measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index.

Typical members: Michaels, NVR, Dean Foods, Pier 1, BRE Prop

Russell 3000®
Growth
IWZ 		Measures the performance of those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth values. The stocks in this index are also members of either the Russell 1000 Growth or the Russell 2000 Growth indexes.

Typical Members: GE, Microsoft, Wal-Mart, Intel, Cisco, Coke

Russell 1000®
Growth
IWF 		Measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.

Typical members: GE, Microsoft, J&J, HD, Dell, BMY

Russell 2000®
Growth
IWO 		Measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values.

Typical members: NVR, Career Educ, Cheesecake Fac

Russell 3000®
Value
IWW 		Measures the performance of those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth values. The stocks in this index are also members of either the Russell 1000 Value or the Russell 2000 Value indexes.

Typical members: Exon, Citigroup, Verizon, BOA, JP Morgan

Russell 1000®
Value
IWF 		Measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.

Typical members: CIGNA, Weyerhauser, Deere, Sara Lee

Russell 2000®
Value
IWN 		Measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values.

Typical members: Dean Foods, Penzoil, BRE Prop, Bob Evans

Russell Midcap®
IWP 		Measures the performance of the 800 smallest companies in the Russell 1000 Index, which represent approximately 26% of the total market capitalization of the Russell 1000 Index.

Typical members: Raytheon, Best Buy, BB&B, Medimmune, Staples


Investing Index | Home