TACOMA, Wash. â Russell Investment Group has launched the Russell Top 50â¢ Index, a benchmark for mega-cap stocks. This index includes the 50 largest U.S. companies based on market capitalization, which represents approximately 40 percent of the U.S. market, and is designed as an objective tool to accurately track the performance of this segment.
Russell has tracked the top 50 U.S. stocks as an index since 1979 for internal use, and the firm now provides all investors with real-time performance figures for the index as well as some historical data at www.russell.com. The decision to make the Russell Top 50 widely available as a distinct index allows asset managers and other investors to more accurately benchmark large-cap products and assets. The index therefore gives investors a more precise tracking of their large-cap portfolios.
"The largest-cap companies of the market have been persistently underweighted by many active investment managers for years," said Lori Richards, senior product manager for Russell Indexes. "This could result in many funds underperforming if large-cap stocks regain their market leadership position. With the Russell Top 50, though, managers have another tool to evaluate whether their bias has caused them to underweight the largest companies."
With the addition of the Russell Top 50, Russell provides daily index performance data for 22 segments of the U.S. market, including the large-cap Russell 1000Â® Index, small-cap Russell 2000Â® Index and broad-market Russell 3000Â® Index. Russell uses a transparent, objective process in the development of its indexes and all Russell indexes have been free-float adjusted since inception.
This year marks the 21st anniversary of Russell indexes. Russell employs its indexes to objectively evaluate investment managers for multi-manager funds and other investment services. More than $2.5 trillion in assets are benchmarked to Russell indexes, including more than $450 billion invested in passive index funds that use them as a model.