Russell Midcap Index

Russell Midcap Index

The Russell Midcap Index is the benchmark for tracking midcap stocks in the U.S. Markets.  The index is made up of of the smallest 800 companies listed on the Russell 1000 index and is weighted by the market capitalization of each stock.  The index was first started in 1984 by the Russell company to better measure the performance of fund managers.  Prior to the creation of these indices, many investment managers were only tracked against the Dow Jones and S&P 500.  With the advent of the Russell Indexes, traders were able to segment the market more efficiently to better track the investment managers.  The average company has a market cap which ranges between $8 billion - $10 billion.  Each stock is reviewed annually in June and if the stock no longer meets the requirements it is removed.  The Russel Midcap Index represents approximately 31% of the total market capitalization of the Russell 100 index.

Largest Components of the Russell Midcap Index

The top industries in the Russell Midcap Index can change annually.  However, there are a number of industries which are consistently at the top of the list: Financial Services, Consumer Discretionary, Technology, Utilities & Health Care.

Russell Midcap Index Chart Example

Below is a chart of the Russell Midcap Index.  Notice how the index plummuted with the mortgage crisis of 2008.  This is common for the Russell Midcap Index, as it is leads the market because it is the reflection of the market from the bottom up since it consists of small stocks.

Russell Midcap Index

Tim Ord
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Tim Ord is a technical analyst and expert in the theories of chart analysis using price, volume, and a host of proprietary indicators as a guide...
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