At a glance
- Provider
- FTSE Russell (benchmark administrator: FTSE)[1]
- Base date / value
- December 31, 1978 = 100.00[1]
- Constituents
- Companies ranked #1,001–3,000 at reconstitution; leavers between reconstitutions are not replaced[1]
- Weighting
- Float-adjusted (available) market capitalization[1]
- Reconstitution
- Fourth Friday in June and second Friday in December; IPOs considered quarterly[1]
- Region / currency
- U.S. companies; base currency U.S. dollars[1]
Index levels and returns change every trading day and are not shown here. Check the provider's own page for current figures.
Quick answer
The Russell 2000 holds the U.S. companies ranked 1,001 to 3,000 by market value, weighted by float-adjusted market capitalization. FTSE Russell rebuilds it from a fresh ranking each June and, starting in 2026, each December too [1].
Key points
- The Russell 2000 is the bottom two-thirds, by count, of the Russell 3000: ranks 1,001 to 3,000.
- Membership comes from a size ranking on a fixed rank day, not from a committee's judgment.
- From 2026, reconstitution moves from once a year to twice a year, in June and December.
- A band around the large/small breakpoint stops companies flipping between indexes over small moves.
- Companies that leave between reconstitutions are not replaced, so the count can drift below 2,000.
#What does the Russell 2000 measure?
FTSE Russell ranks U.S. companies by size. The largest 4,000 form the Russell 3000E, which the provider says represents approximately 99% of the U.S. equity market [2]. The Russell 3000 is the top 3,000 of those, and the methodology defines the Russell 2000 as companies #1,001 to 3,000 [1]. The top 1,000 form the Russell 1000.
That makes the Russell 2000 a small-cap index: it covers smaller public companies, measured by market value [2]. "Small" is relative here; many members are sizeable businesses, just smaller than the largest thousand. For a large-company comparison, see the S&P 500.
How the Russell size indexes nest
#Which companies are eligible?
Before ranking, a company must count as a U.S. company. FTSE Russell assigns a country using home-country indicators, and then applies screens [1]. A stock needs a closing price of at least $1.00, a total market capitalization of at least $30 million, and at least 5% of its shares available to the public [1].
| Screen | Requirement |
|---|---|
| Country | Assigned to the U.S. using home-country indicators |
| Minimum price | $1.00 closing price |
| Minimum size | $30 million total market capitalization |
| Minimum float | 5% or more of shares available |
| Russell 2000 rank | #1,001 to #3,000 by total market capitalization |
#How is the Russell 2000 weighted?
The methodology states that stocks in the Russell US indexes "are weighted by their available (also called float-adjusted) market capitalization" [1]. Float means the shares available to the public; the methodology adjusts each security's shares to include only those, with the detailed restrictions set out in a separate FTSE Russell document [1]. Market capitalization is explained in market capitalization. On rank day, eligible securities are ranked by their total market capitalization [1]; weighting inside the index then uses the float-adjusted value.
#When is the Russell 2000 reconstituted?
Reconstitution means rebuilding the index from a new ranking. FTSE Russell announced on December 17, 2025 that the Russell US indexes would move from an annual to a semi-annual schedule in 2026, with the first December reconstitution effective December 14, 2026 [3]. The current methodology says reconstitution occurs on the fourth Friday in June and the second Friday in December [1].
Each reconstitution uses a rank day: the last business day of April for June, and the last business day of October for December [1]. Between reconstitutions, initial public offerings (IPOs) can be added each quarter [1].
The Russell US calendar (from 2026)
Last business day of January, April, July, October
IPO rank dates for quarterly additions[1]
Last business day of April
Rank day for the June reconstitution[1]
Fourth Friday in June
June reconstitution[1]
Last business day of October
Rank day for the December reconstitution[1]
Second Friday in December
December reconstitution (first held in 2026)[3]
#Why don't companies jump between the Russell 1000 and 2000 every time?
A company sitting near the #1,000 cut-off could flip indexes on tiny price moves. To limit that turnover, FTSE Russell uses a cumulative market-cap band of ±2.5% around the #1,000 breakpoint; existing members inside the band keep their current assignment [1].
Worked example
Worked example: how the band keeps members in place
Suppose, purely for illustration, company #1,000 sits at 90.0% of cumulative Russell 3000E market value. The ±2.5% band then runs from 87.5% to 92.5%. Three existing members are checked at reconstitution.
- Band (90.0% − 2.5%, 90.0% + 2.5%)
- 87.5% to 92.5%
- Russell 1000 member now at 91.6%
- Inside band → stays in Russell 1000
- Russell 2000 member now at 88.4%
- Inside band → stays in Russell 2000
- Russell 1000 member now at 93.1%
- Outside band → moves to Russell 2000
- Count drift: 2,000 start − 14 leavers + 6 IPOs
- 1,992 members
Small moves near the cut-off do not trigger a switch; only moves past the band do. Between rebuilds, the member count can drift because leavers are not replaced.
The 90.0% breakpoint and the leaver and IPO counts are invented for the example; real values are set at each rank day. Calculated in Python.
#How do people track the Russell 2000?
Like any index, it cannot be bought directly. Investor.gov names the Russell 2000 as an example of an index that index funds track, and warns that a fund may not perfectly track its index and can trail it because of fees and trading costs [4]. Reconstitution days matter to these funds, because they must trade to match the new list. See index funds explained.
Common beginner mistakes
Thinking "small cap" means tiny
Members are simply ranked below the largest 1,000 U.S. companies. Many are established businesses.
Expecting exactly 2,000 stocks
Companies that leave between reconstitutions are not replaced, and IPOs can be added, so the count moves around between rebuilds.
Using an old calendar
Older guides describe a once-a-year June reconstitution. From 2026 there is a December reconstitution too, so check the methodology date before relying on a schedule.
Treating smaller companies as the same risk as large ones
An index of smaller companies can behave very differently from a large-company index over the same period. Look at how much each has swung in the past before assuming they are interchangeable; see market volatility explained.
What's the bottom line?
The Russell 2000 is a rules-based, float-adjusted index of U.S. companies ranked 1,001 to 3,000 by size, rebuilt in June and, from 2026, in December. Knowing the rank day, the band and the no-replacement rule explains most of its quirks. For the general idea behind all of these benchmarks, see what a stock market index is.
Frequently asked questions
Who runs the Russell 2000?
FTSE Russell, which is part of the London Stock Exchange Group. Its methodology names FTSE as the benchmark administrator of the index.
Is the Russell 2000 part of the Russell 3000?
Yes. The Russell 3000 holds the largest 3,000 U.S. companies; the Russell 1000 takes ranks 1 to 1,000 and the Russell 2000 takes ranks 1,001 to 3,000.
How often is the Russell 2000 reconstituted?
Under the methodology in force in 2026, twice a year: on the fourth Friday in June and the second Friday in December, with IPOs considered each quarter.
Does a committee pick Russell 2000 stocks?
No. Membership follows the published ranking and screens, with banding to limit turnover, rather than case-by-case committee selection.
Sources
Grade A = primary source (regulator, government agency, official rulebook or the index provider's own documents). Numbers in brackets in the text point here.
- FTSE Russell (LSEG). Russell US Equity Indexes: Construction and Methodology v7.2 (August 2026) (2026). Accessed 2026-10-03.A
- FTSE Russell (LSEG). Russell US Indexes methodology overview (2025). Accessed 2026-10-03.A
- FTSE Russell (LSEG). Russell US indexes move to semi-annual reconstitution (2025). Accessed 2026-10-03.A
- U.S. SEC — Investor.gov. Index Funds (2026). Accessed 2026-10-03.A
This page is general education, not personal financial, tax or legal advice. Figures in worked examples are hypothetical and calculated before taxes and fees unless stated. Rules and limits change; check the linked primary sources for the current version. How we check every page.
