What Is the Russell 1000 Index?
The Russell 1000 Index is a stock market index used as a benchmark by way of investors. This is a subset of the larger Russell 3000 Index and represents the 1000 best corporations by way of market capitalization in the United States.
The Russell 1000 is owned and operated by way of FTSE Russell Workforce and based in the United Kingdom. The Russell 1000 is considered a bellwether index for large-cap investing.
Key Takeaways
- The Russell 1000 Index represents the easiest 1000 corporations by way of market capitalization in the United States.
- The index is a subset of the Russell 3000 Index.
- The Russell 1000 index comprises about 93% of the entire market cap of all listed stocks inside the U.S. equity market.
- Potency and characteristics of the index are provided monthly by way of FTSE Russell.
Working out the Russell 1000 Index
The Russell 1000 was once as soon as offered on Jan. 1, 1984, by way of FTSE Russell, which moreover manages the Russell 3000 and Russell 2000. A subset of the Russell 3000 index, the Russell 1000 is market capitalization-weighted where a very powerful corporations constitute a very powerful percentages inside the index and will have an effect on potency more than the smallest Index contributors.
The index consists of more or less 93% of the entire market capitalization of all listed stocks inside the U.S. equity market. Its portions are reconstituted yearly in May. However, newly listed stocks with initial public alternatives (IPOs) are considered for inclusion quarterly.
Very best Holdings of the Russell 1000 Index
To get to the bottom of the holdings of the Russell 1000, the company ranks all the stocks included inside the Russell 3000 by way of market capitalization and identifies {the marketplace} cap breakpoint of the 1,000th stock ranking.
This breakpoint is the primary market capitalization used to get to the bottom of index eligibility. Many stocks are swapped between the Russell 1000 and Russell 2000 at the annual reconstitution then again variation around the market cap breakpoint is the working out factor.
As of December 2022, the easiest 10 Russell 100 index constituents include:
- Apple Inc.
- Microsoft Corp
- Amazon Com Inc.
- Berkshire Hathaway Inc.
- Alphabet Inc. CL A
- Unitedhealth Workforce Inc.
- Alphabet Inc. CL C
- Johnson & Johnson
- Exxon Mobil Corp.
- JPMorgan Chase & Co.
Potency of the Russell 1000 Index
Potency and characteristics of the Russell 1000 Index are provided monthly by way of FTSE Russell. As of Dec. 31, 2022, the Russell 1000 has 1,010 holdings, the typical market cap was once as soon as $381.35 billion, and the median market cap was once as soon as $12.2 billion.
The annual return for the Russell 1000 Index was once as soon as -19.13% in 2022 and the typical 3-year return was once as soon as 7.35%.
The easiest way to Spend money on the Russell 1000 Index
Consumers must purchase shares of the Russell 1000 index by way of a mutual fund or an exchange-traded fund allocated by way of sort and sector. Consumers can who don’t need to invest at once inside the index may acquire shares in passively managed index exchange-traded finances (ETFs) offered by way of iShares, along with the iShares Russell 1000 Index ETF (IWB) and the iShares Russell 1000 Value ETF (IWD) for large-cap and mid to lower-cap portfolios:
iShares Russell 1000 Index ETF (IWB)
Many investors select the Russell 1000 for large-cap portfolio exposure. The iShares Russell 1000 Index ETF is one of the primary finances offering whole investment in all the Russell 1000 portions. IWB is an index fund that seeks to test the holdings and return of the Russell 1000 Index.
The fund was once as soon as established on May 15, 2000, and the ETF trades on the New York Stock Business (NYSE). Property underneath regulate (AUM) as of January 2023 had been $28.01 billion.
iShares Russell 1000 Value ETF (IWD)
The iShares Russell 1000 Value ETF shall we in investors to track each and every mid and large-cap U.S. equities in line with the Russell 1000 index. The ETF was once as soon as offered on May 22, 2000.
The ETF trades on the NYSE and as of January 2023, AUM was once as soon as $54.8 billion.
Russell 1000 Index Variations
FTSE Russell moreover provides quite a lot of index variations derived from the Russell 1000. The ones variations include the:
- Russell 1000 Value
- Russell 1000 Growth
- Russell 1000 Defensive
- Russell 1000 Dynamic
- Russell 1000 Growth-Defensive
- Russell 1000 Growth-Dynamic
- Russell 1000 Value-Defensive
- Russell 1000 Value-Dynamic
Russell 1000 Index vs. Dow Jones Industry Affordable vs. Standard & Poor’s 500 Index
The Russell 1000 is a much wider index than the often-quoted Dow Jones Industry Affordable (DJIA) and Standard & Poor’s (S&P) 500 Index, even supposing all 3 are considered large-cap stock benchmarks.
The DJIA, which is often referred to as the Dow 30, tracks a very powerful 30 blue-chip stocks listed on the NYSE and the Nasdaq. Transport and alertness corporations are excluded from the index. It is the second-oldest stock market index in the United States and typically serves as a intensive representation of the U.S. monetary device.
The S&P 500 is one of the most repeatedly used indexes to measure the U.S. monetary device and large-cap corporations inside the U.S. It is made of 500 of a very powerful corporations inside the country.
What Is the Russell 2000 Index?
The Russell 2000 Index is a small-cap stock market index that includes the smallest 2,000 stocks inside the Russell 3000 Index.
What Components Unravel Which Stocks are Added To the Russell 100O Index?
Stocks are each added or subtracted from indexes in line with quite a lot of requirements along with market capitalization, proportion value, and purchasing and promoting amount.
Does the Russell 1000 Index Pay a Dividend?
As of December 2022, the dividend yield for the Russell 1000 was once as soon as 1.72%.
The Bottom Line
The Russell 1000 is owned and operated by way of FTSE Russell Workforce, based in the United Kingdom. The Russell 1000 Index is a subset of the larger Russell 3000 Index and represents the 1000 best corporations by way of market capitalization in the United States. As of December 2022, the Russell 1000 index comprised 93% of the entire market capitalization of all listed stocks inside the U.S. equity market.
