SOURCE: Russell Investments

Russell Investments

September 28, 2010 16:53 ET

Russell Indexes: Small Caps Greatly Outperformed Large Caps in Past Decade

TACOMA, WA--(Marketwire - September 28, 2010) -  Small-cap stocks have outperformed large-cap stocks by 50 percentage points for the 10-year period through September 24, 2010. The U.S. small-cap Russell 2000® Index reflects a cumulative return of 47.6% for the period, outperforming the U.S. large-cap Russell 1000® Index (-2.2%).

The U.S. broad-market Russell 3000® Index shows a slightly positive 10-year cumulative total return (0.84%) from September 22, 2000 through September 24, 2010.

  Russell 1000 Russell 2000 Russell 3000
Closing value on September 22, 2000 3119 2026 3001
Closing value on September 24, 2010 3051 2986 3026
Cumulative 10-year Total Return -2.2% 47.6% 0.84%

The Russell Global Index includes more than 10,000 securities in 61 countries and covers 98% of the investable global market. All securities in the benchmark are classified according to size, region, country and sector. Daily Returns for the main components are available here:

Small capitalization (small cap) investments involve stocks of companies with smaller levels of market capitalization (generally less than $2 billion) than larger company stocks (large cap). Small cap investments are subject to considerable price fluctuations and are more volatile than large company stocks. Investors should consider the additional risks involved in small cap investments.