Index Derivatives - Russell 3000
Stock Market
Investing &
Trading System
The Russell 3000 Index was created in 1984 by Frank Russell
Company and was designed to track the performance of small-cap companies.
Russell 3000 Index ETF (Exchange Traded Fund),
trading exclusively at the
Chicago Board Options Exchange, make it simple to participate in the
small-cap market.
Russell 3000 Index 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. As of the latest reconstitution, the
average market capitalization was approximately $5.1 billion; the median market
capitalization was approximately $791.1 million. The index had a total market
capitalization range of approximately $520 billion to $178 million.
A market
capitalization weighted equity index maintained by the Russell Investment Group
that seeks to be a benchmark of the entire U.S. stock market. More specifically,
this index encompasses the 3,000 largest U.S.-traded stocks, in which the
underlying companies are all incorporated in the U.S.
Exchange Traded Funds (ETFs) & iShares, Options & Futures
Trading / Futures Contracts
|
Securities |
Issuer |
Type |
Symbol / Root |
|
Russell 3000 Growth Index Fund |
AMEX |
ETF |
IWZ |
|
Russell 3000 Index Fund |
AMEX |
ETF |
IWV |
|
Russell 3000 Value Index Fund |
AMEX |
ETF |
IWW |
|
The popularity of the Russell 3000 as a small-cap benchmark leads to
four fundamental reasons for using RUT options:
About Russell 3000 Index Funds & ETFs
Investors are able to trade a broad market by making one
Russell
3000 Index ETF (Exchange Traded Fund) trading decision rather than making the
many decisions involved with investing in numerous individual stocks.
Insurance
Russell 3000 Index ETFs (Exchange Traded Funds) offer a convenient and
easy way to help reduce the market risk of a broad market portfolio of
many small-cap stocks, without disrupting the make-up of the portfolio.
Leverage
Purchasing
Russell
3000 Index ETFs, instead of buying or selling thousands
of individual stocks, provides an investor with an additional opportunity
to use investment capital elsewhere. For a relatively small percentage
gain in the underlying index, a Russell 3000 Index ETFs can increase in
value by a multiple of that gain.
| 
