Russell 1000 Value Index

Definition

The term Russell 1000 Value Index refers to a composite of large and mid-cap companies located in the United States that also exhibit a value probability.  The Russell 1000 Value is published and maintained by FTSE Russell.

Explanation

The Russell 1000 Index is designed to be a measure of the large and mid-sized capitalization companies in the United States equities market.  The index is a composite of roughly 1,000 securities issued by the largest companies in the U.S. in terms of market capitalization.  The Russell 1000 Value Index is a subset of the securities found in the Russell 1000.  As of this writing, there were approximately 700 securities in the Russell 1000 Value Index.  The stocks included in the value index are selected based on a "probability" of value as measured by their relative book-to-price (B/P) ratio.

First launched on January 1, 1987, the companies included in the index are selected based on float-adjusted market capitalization.  On the last trading day of May, FSTE Russell ranks eligible companies based on their total market capitalization values.  On the last Friday of June, the index is reconstituted.  To be eligible for inclusion in a U.S. equity market index, the securities must trade on the NYSE, NYSE MKT, NASDAQ, or ARCA exchanges.  The performance of this index can be monitored via the iShares Russell 1000 Value ETF ticker symbol IWD:US.

Related Terms

Russell 2000, Russell 1000 Growth, Russell 1000, Russell Top 200 Value