Published on 2 Jan 2024 on Market Watch
The Russell 2000 Index has soared, but you might be better off looking elsewhere for quality...
The Russell 2000 Index soared 12% in December, which might reflect investors’ exuberance about the state of the U.S. economy — it appears the Federal Reserve has won its battle against inflation.
But if you are looking to broaden your exposure to the stock market beyond the large-cap S&P 500 buying shares of a fund that tracks the Russell 2000 Index might not be the best way to do it. This is because the Russell 2000 isn’t selective — it is made up of the smallest 2,000 companies by market capitalization in the Russell 3000 Index which itself is designed to capture about 98% of the U.S. public equity market.