Russell MicroCap Index

Definition

The term Russell MicroCap Index refers to a composite that includes micro-capitalization companies located in the United States.  The Russell MicroCap is published and maintained by FTSE Russell.

Explanation

The Russell Microcap Index is designed to measure the performance of the micro capitalization companies in the United States equities market.  The index is a composite of roughly 1,500 securities with a median market capitalization value of approximately $200 million.

First launched on June 1, 2005, the companies included in the index are selected based on float-adjusted market capitalization and represent the same companies appearing as 2,000 through 4,000 in the Russell 3000E (which contains approximately 4,000 securities).  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 Micro-Cap ETF ticker symbol IWC.

Related Terms

Russell 3000, Russell 3000 Growth, Russell MidCap, Russell 3000E