Wall Street investors are asking themselves many questions about big tech stocks, whose prices have soared in recent years, and about alternatives to these investments whose yields are in drop.
The Russell 2000 Index, which measures small stocks listed on US stock exchanges, reveals a notable trend towards these stocks, making them the focus of investor attention.
The Russell 2000 Index is one of the indicators for measuring performance of US shares, issued by the specialized FTSE Russell International Corporation in measurement indicators, in 1984.
The Russell 2000 Index measures the performance of the two thousand smallest companies listed on the US stock exchanges by market capitalization.
It represents 10% of the market value of the more comprehensive “Russell 3000” index.
The importance of this indicator is that it provides a benchmark for investors and entrepreneurs who want to know the performance of the small business sector for the purpose of investing or discovering real opportunities.The FTSE Russell Corporation reviews companies annually in it listed with the aim of updating them.
The advantage of investing in companies in this index is that they are diversified and small in size, and therefore can grow in significantly and achieve double the profits of large corporations.
A company in this indicator can double its value in a year, whereas normally this cannot be done by a company worth hundreds of billions or trillions of dollars.
The Russell 2000 Index shone during the Crown Crisis, as it jumped around 100% since March 2020 after the sharp drop in stock exchanges in general at the beginning of the crisis.
The “Russell 2000” index has continued to grow since the rise of the stock exchanges in recent years, as it jumped 25% in 2019 after falling 11% in 2018, and then continued to rise 20% in 2018. 2020, then 14% in 2021.
The dimension media company in the “Russell 2000” index is about one billion dollars, while the market value of the companies in it listed reached $ 3.5 trillion in 2021, recording an 84% increase over 2020, according to CME data. group.
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