Skip to main content

You are here

Blog Listing Page

Index IDEA: US small caps over the last decade

The Russell 2000® Index, measuring US small cap stocks, rose 1.8% in August and 10.2% year-to-date as of August 31. And, while past performance does not guarantee the future, in the last decade when there has been a positive return for the Russell 2000 through August there has also been a positive index return for the remainder of the year in the majority of instances.

FTSE Russell examined returns for the Russell 2000® Index over the last decade. In the last ten years, the index value has risen for the year-to-date through August six times. And, in five of those six times, the index value has increased over the rest of the calendar year. And, notably, in two other years (2010 & 2011) the index value rose in September through December following a negative year-to-date through August.

2007 is the only outlier in this trend, when the index value fell 2.9% for September through December following a 1.4% index value increase for the year-to-date through August.

Catherine Yoshimoto, Senior Index Product Manager, FTSE Russell:

“Market indexes can be effective tools for historical perspective as well as for context on current market direction. In the case of the Russell 2000 measuring US small caps, while the year-to-date market direction through August has held for the rest of the year in the majority of cases, 2007 is a notable exception. A closer look at the market environment of the late summer and autumn of that year, with credit turmoil, concerns about economic growth in the US and a weakening US dollar shifting leadership to US large cap stocks, helps provide a clue on what factors made 2007 the trend buster in our analysis.”


© 2016 London Stock Exchange Group plc and its applicable group undertakings (the “LSE Group”). The LSE Group includes (1) FTSE International Limited (“FTSE”), (2) Frank Russell Company (“Russell”), (3) FTSE TMX Global Debt Capital Markets Inc. and FTSE TMX Global Debt Capital Markets Limited (together, “FTSE TMX”) and (4) MTSNext Limited (“MTSNext”). All rights reserved.

FTSE Russell® is a trading name of FTSE, Russell, FTSE TMX and MTS Next Limited. “FTSE®”, “Russell®”, “FTSE Russell®” “MTS®”, “FTSE TMX®”, “FTSE4Good®” and “ICB®” and all other trademarks and service marks used herein (whether registered or unregistered) are trade marks and/or service marks owned or licensed by the applicable member of the LSE Group or their respective licensors and are owned, or used under licence, by FTSE, Russell, MTSNext, or FTSE TMX.

Views expressed by Catherine Yoshimoto are as of September 1 and subject to change. These views do not necessarily reflect the opinion of FTSE Russell or the LSE Group.

All information is provided for information purposes only. Every effort is made to ensure that all information given in this publication is accurate, but no responsibility or liability can be accepted by any member of the LSE Group nor their respective directors, officers, employees, partners or licensors for any errors or for any loss from use of this publication or any of the information or data contained herein.

No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the Russell Microcap® Index or the fitness or suitability of the indexes for any particular purpose to which they might be put.

No member of the LSE Group nor their respective directors, officers, employees, partners or licensors provide investment advice and nothing in this IDEA should be taken as constituting financial or investment advice. No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any representation regarding the advisability of investing in any asset. A decision to invest in any such asset should not be made in reliance on any information herein. Indexes cannot be invested in directly. Inclusion of an asset in an index is not a recommendation to buy, sell or hold that asset. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.

No part of this information may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the applicable member of the LSE Group. Use and distribution of the LSE Group index data and the use of their data to create financial products require a licence from FTSE, Russell, FTSE TMX, MTSNext and/or their respective licensors.

Past performance is no guarantee of future results. Charts and graphs are provided for illustrative purposes only. Index returns shown may not represent the results of the actual trading of investable assets.

Blog Listing Page