If You Want To Invest In the Stock Market, You Should Invest In the Russell 2000….

I have been wanting to write an article about the Russell 2000 for sometime. The Russell 2000 could be renamed “America First 2000” because it is comprised of US companies only.

This article was written on July 7, 2017. Approximately 6 months into PDJT’s presidency.


From the article linked above:

US small-cap stocks have gone largely unnoticed by global investors, but the Trump administration’s “America First” doctrine has given smaller companies a boost, and futures and options on the widely watched Russell 2000 small-cap index could offer new opportunities for trading and portfolio hedging.

What is the Russell 2000 Index? 
The Russell 2000 Index is a small-cap stock market index and is used to measure the performance of 2000 publicly traded US companies. The “cap” (or capitalisation) can vary from tens of millions to five-ten billion dollars.

In the link below, you will find a list of all the different stocks within the Russell 2000.


From the article linked above:

The Russell 2000 Index is the world’s best-known benchmark for small cap domestic stocks. It is composed of stocks ranked 1,001 to 3,000 in terms of descending market capitalization.

Small cap stocks have historically outperformed their larger counterparts. Accordingly, the Russell 2000 Index can be an excellent place to look for new investment opportunities.

You can also invest in Mutual Funds that buy a majority of their portfolio in the Russell 2000 and S&P SmallCap 600.
From the article linked above:
In line with the performance of the small-cap index, the small-cap mutual funds also registered healthy returns – higher than the large- and mid-cap ones. Small-cap mutual funds posted an average return of 6% in last one month, while the large- and mid-cap funds registered average gains of 3.3% and 4.4%, respectively.

If you check how the Russell 2000 has done so far YTD (Year To Date) versus the big 3; DJIA, S&P 500 and Nasdaq Composite, the YTD return speaks for itself.


  • Russell 2000 – 17.24%
  • DJIA – 11.39%
  • S&P 500 – 11.39%
  • Nasdaq Composite – 13.85%

Please feel free to share with family and friends.


18 thoughts on “If You Want To Invest In the Stock Market, You Should Invest In the Russell 2000….

    1. Buy the Index instead of individual stocks. Then you’ll get the benefit of all of them. Some will go up and some down, but you’ll get the weighted average. (I think they use a weighted average – correct me if I’m wrong).

      Liked by 9 people

  1. Thank you, Flep. Life circumstances are forcing me to make investment decisions and your advice came at a very opportune time for me.

    This is a conflict that has been bothering me for weeks. How do you manage personal finance from a Q perspective? How can I do long-term financial planning when I’m not 100 convinced the market, country, or even myself will exist by the time I hit retirement age (neither of my parents lived to that age)? I genuinely don’t know. They don’t write personal finance books for this perspective.

    I’m not demanding answers to those questions. Just needed to vent and this seemed like a good place to do it.

    Liked by 4 people

    1. You might wish Flep to answer back, but I’d tell you this. Your right. No guarantees. But if what you suggest happens it happens to everyone unless your money is buried in the back yard. IMO investments are for when you have the car bought off or are satisfied you can make payments, same with the living arrangements and such, also you should have an emergency fund tucked into a bank (normally one years salary is a good emergency fund). The rest of money left over is what your looking to invest. It’s the extra money you know you wont be spending in the next year or those following.

      The conservative method is put the money in CD’s but mind you a good CD will barley keep you ahead of inflation, but is better than the hole in the back yard. If you do that I’d suggest you ladder your CD’s to avoid problems with early withdrawal. Example is you have 3000 dollars. Instead of putting your money into a CD for 3000 you put it into 3 CDs at 1000 each, in case you need to get your hands back onto some of that money before the term of the CD is up. You lessen the impact of penalties when you do that should you need the money.

      Also, this is me, but I personally would avoid IRA’s and 401’s and pay my taxes up front. The way the debt is and depending on who is in charge of the country both IRA’s and 401 are subject to government tampering. It hasn’t happened yet in this country but it is talked about time to time and I believe it has happened where the governments of some European countries have given investors a hair cut (skimmed their money). Also because access to that money with out penalty puts you near the age of possibly loosing your bearings so I just don’t like it and want access to my money when I want it. That said though if your getting a matching contribution on a 401 then by all means go for that, but don’t bother exceeding it. Now if everything goes well for markets and such up to the date when you can get that money without incurring a penalty then you are behind some. But it is that which you are worried about as am I so I just don’t do either and pay my taxes up front. Also the 401 I could get into is a dog as most are unless your in a good job with a good 401.

      Not sure that helped.

      See the rest of me below.

      Liked by 4 people

      1. I appreciate the response and the advice in this thread very much. I’ve arrived at similar conclusions—get the debt and emergency fund squared away, don’t trust the government to keep its word about tax free accounts, use CD ladders to at least get some return on your money, invest in index funds and ETFs if you invest in stock at all. It’s reassuring to find like-minded others and know I’m not totally screwing this up.

        Liked by 4 people

          1. When I was 25 or so and first started investing I used to think society would be better served by instead of trading in baseball cards kids might trade in mutual fund manger cards.

            Also I don’t understand why personal banking and investing isn’t taught in public schools.

            Speaking about public schools, slight diversion, but it might be a good idea that health classes include viewing testimony from abortion survivors. PTA’s should be pushing for it even if it is extra-curricula. I think it would go far in changing the debate.

            Liked by 1 person

      2. para – good solid advice.
        I also agree with your reasoning on 401k and matching contribution; only to max matching funds; if you are able to invest more money beyond the max contribution do not invest thru 401ik or IRA. Pay those taxes now !1

        Liked by 4 people

  2. Adds a little more info on Mutual Funds. First off I’ve always been an ultra conservative when it comes to investing. My job sort of demanded that when I invested i’d be looking for a fire and forget type fund (sorry that’s how some missiles work, fire and forget, meant to say buy and forget. Basically I didn’t have time to monitor the funds so I bought more stable funds, and those are normally tied to indexes. You don’t get rich quick doing this. It takes time, but it works. If you look at index funds vs managed funds (fund manager actively trades) you will see that a good fund will return about 7 to 10 percent over time. So if your eyeballing a fund and you see they made a total return of 90% one year but the next few years they likely had losses that dragged them down to the normal 7 to 10% over time that an index fund would give you any way. Now if your savvy and monitoring your funds and buying and selling you can obviously do better with actively managed funds, but actively managed funds will have dramatically higher fees than many index funds and if your buying and then selling with in a year you’ll also be taxed at a higher rate (same with buying stocks).

    Now most of us here are bit older and don’t have time to just go with a fire and forget plan. Your kids would you don’t but you might still want gains that are better than a CD. So what do you do?

    First off any good mutual fund family will normally offer tutorials for free and you don’t have to open an account to read them. I’m a Vanguard Investor and highly recommend them because of they have the lowest costs and well run funds. Their prime money market fund also always has a return that runs better than most CD rates and is among the best (normally the best) among other mutual funds.

    There’s much more to say but the tutorials are the way to go and with that I’d offer this advice to get started (specific to Vanguard but most other trust worthy funds should be the same).

    1. Open a money market fund and park your money there (3,000 to start at vanguard unless your setting up a direct deposit sort of thing). Your money is not subjected to any terms (unlike a CD) and you can take it back out at any time without penalty. Also your getting a better rate of return than most any safe bank can offer with a 1 to 3 year CD. During this period do your research and learn your way around the wealth of information they offer and pick a fund or funds you want to put your money into. Totally safe unless the country goes up in flames.

    2. Suggest you look strongly at ETF’s, (exchange traded funds). You don’t have to as you could just buy into a mutual fund that is not an ETF. The major difference between an ETF and normal mutual fund is that you can buy in and out of the fund while the market is open and get close to what you see while the market is open. Buying and selling in a normal mutual fund gives you what ever the day’s closing price is so you miss the dips and rises going on during the day. If your buying with an ETF you want the dips and when selling you’d like the rises. You want the same with a normal mutual fund but like I said you will be stuck with what ever the days closing price is. This won’t matter much in a clam market. In a more volatile market it will make a difference.

    Liked by 5 people

    1. Ikes.. fat fingered that, but wasn’t finished.

      3. If your interested in the ETF’s your going to need to take an extra step. That is open a brokerage account. This allows you to buy anything you want during the trading day. You normally need a very small amount of money to open (deposit into /money is still yours) the brokerage account but the account won’t go active for a day or more so open it a few days before your ready to buy something. Example I have my money in the money market fund. I take 100 dollars and open a brokerage account. The money earns interest while there. Say a month later or six months later you get the itch to buy something because you been reading all the rules and suddenly the Fed raises interest rates and the market goes into a tizzy and falls. You wait a day or maybe two as the market bottoms out and then you toss some more money into the brokerage account and buy the funds ( or stocks if you wish) you want at the lowest possible price.

      4. Like with a CD you normally are investing money you won’t miss for the term of the CD. You do want to look at tax consequences. Long term capital gains are taxed at better rate. To qualify for long term capital gains you need to hold the investment for at least one year. Short term capital gains (investment held less than one year) are taxed at higher rate.

      5. You earn money on investments three ways. CD’s its just the interest rate. Stocks or Mutual Funds will have the capital gain and in some cases the dividend. The capital gain is the money you made when taking the money out. If you take out more than you put in you call that extra money a capital gain. If it’s less than you call that a capital loss and you can write some of that off on your tax return. Additionally capital gains are also paid whether you take the money out or not (I’m not sure how that is figured but it is and you will normally be paid a capital gain at some point in the year). A stock or mutual fund may also offer a dividend. This is paid out annually or in many cases quarterly if offered. Dividends are normally taxed the same as interest.

      So to recap that, you get a capital gain, may get a dividend and will get a capital gain when you take your money out if its more than you put in.

      So all that might be a bit confusing, and of course there’s always more, but open up a money market account and do the research and don’t move your money until your sure it’s what you want to do. In the meantime the money’s as safe as it is with a bank.

      Liked by 5 people

      1. You can start here. This is vanguard (other fund families Oppenhimer, Janus, TRowe Price or Fidelity and more would offer the same). If you paid close attention David Hogg aka camera hogg tried to attack this family of mutual funds several times. The fund has been around since before the great depression and is very stable so they didn’t flinch one bit from that little wimps attacks.


        Liked by 5 people

          1. They’ve practically have done away with most of their fees on trading. I’d just look at their maintenance fees which I have not.

            They also have good tutorials free to access.

            They also let you in the door with out having to make a maxim investment. Example Vanguard you have to start off with 3000. Not so with most of those or all of those you mentioned, so they are good in that respect.

            Other than that I’d say fine, but I’m with Vanguard and have opened a brokerage account which is what those are so I don’t have a need to use them, but they might actually be faster to get into and also don’t expose you to the risk of being in just one Mutual Fund Family should something go terribly wrong.

            Also you have access to mutual funds from those trading platforms. But I think you would be adding to maintenance fees which actually are minimal but you need to check. Being a conservative investor its those fees you do want to look at as your in for the long haul and fees can add up over time.

            You can still be a conservative investor in those and access the complete market. There is nothing wrong with them. Being a conservative investor what ever I picked would be something I wanted to hold at least a year to avoid the short term capitol gains but if your savvy enough and good at math and figure gains will far offset your tax burden I’d say go for that. Me I’m too lazy to monitor the market and only do market timing off of large events.

            Another thing is create pools of money over time and liquidate those you need to or when the time is right.
            That’s actually a lazy crutch but it could simplify choices and make trading easier on the mind.

            Liked by 2 people

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