Russell 1000 Index

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The Russell 1000® Index is a standard benchmark for measuring the performance of large-capitalization (large-cap) stocks traded on U.S. markets. It comprises the largest 1,000 traded companies in the 3,000 strong Russell 3000 Index.

Brief Background

The Russell 1000, devised in 1984 by Russell Investments, consists of around 92% of total market capitalization of all U.S. stock markets[1] and is essentially the bigger sibling of the better-known small-cap benchmark Russell 2000, which generally consist of the Russell 3000's bottom 2,000 stocks.

Trading Facts

  • According to its latest reconstitution[2], the index's median company had a market capitalization of $6.1 billion compared to the index's equal-weighted average of $16.3 billion.
  • The Russell 1000® Index has a price/earnings ratio of 15.68 and a price/book ratio 2.47 compared to iShares' equivalent fund (ticker symbol: IWB) ratios of 19.43 and 3.79 respectively.[3]
  • As of March 2008 the largest company in the index, Exxon Mobil, had a market cap of $476.4 billion.
  • Earnings per share growth over the past 5 years for the Russell 1000® Index has topped 20%.

References

  1. Russell 1000® Index Fact Sheet. Russell Investrment Group.
  2. Russell 1000® Index. Russell Investment Group.
  3. Russell 1000 Index Fund (IWB). iShares.