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The Russell 2000 is a stock market index that measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which includes the largest 3,000 publicly traded companies in the U.S. The Russell 2000 is often used as a benchmark for small-cap stocks in the U.S. market, representing a broad spectrum of sectors such as technology, healthcare, and consumer goods. It is known for being more volatile compared to larger indices, like the S&P 500, due to the relatively smaller market capitalization of the companies it tracks. This index is widely followed by investors looking to gain exposure to small-cap stocks, which can offer higher growth potential, but also greater risk. The Russell 2000 is reconstituted annually, which means that the composition of the index is adjusted to reflect changes in market capitalization, ensuring it stays focused on the smallest public companies.