Russell 2000 Index

The RUT index, or Russell 2000 Index, tracks 2,000 small U.S. companies. It shows how these smaller companies are performing compared to larger ones. The index is calculated by looking at the market value of these 2,000 companies and averaging their performance. Investors use the RUT index to understand how small-cap stocks are doing and to make decisions about investing in small companies. It helps them see if the market for smaller companies is strong or weak.