Russell 2500 Index ETF: A Comprehensive Overview

The Russell 2500 Index ETF is a popular investment option that tracks the performance of the Russell 2500 Index, a comprehensive index that covers approximately 2,500 publicly traded companies in the US.

It's designed to provide broad exposure to the US mid-cap market, which is often seen as a sweet spot for growth and stability. This index is reconstituted quarterly to ensure it remains representative of the US mid-cap market.

The Russell 2500 Index ETF is a low-cost way to gain access to this diverse portfolio of mid-cap stocks, making it an attractive option for investors looking to diversify their portfolios.

The Russell 2500 Index ETF is a fund that tracks a specific market index.

For the most up-to-date fund's data and information, you should obtain a copy of the fund factsheet or prospectus from the respective ETF issuer.

The Russell 2500 Index ETF has delivered impressive returns over the years, with a 12.86% return over the past year and a 19.61% return over the past two years.

However, it's essential to consider the volatility of the fund, which has been relatively high, especially over the past five years, with a volatility of 57.47%.

The fund's risk-adjusted performance has been moderate, with a 0.77 risk-adjusted performance over the past year and a 0.79 risk-adjusted performance over the past two years.

Here's a breakdown of the fund's performance over different time periods:

The fund's average weighted coupon is 4.00%, which could be a consideration for investors seeking regular income.

The performance of an investment is a crucial factor to consider when evaluating its overall value. Over the past 10 years, the investment has had a 0% return, indicating a relatively stable performance.

Looking at the 1-year returns, the investment has shown a remarkable 12.86% growth, outpacing many other investments in the market.

The 2-year returns are even more impressive, with a 19.61% growth, demonstrating the investment's potential for long-term gains.

However, it's worth noting that the 3-year returns have been less consistent, with a 14.93% growth, indicating some volatility in the investment's performance.

Here's a breakdown of the investment's performance over different time periods:

The investment's average weighted coupon is 4.00, indicating a relatively high yield, which can be attractive to investors seeking income-generating investments.

Operating fees can be a significant expense for investors. Some funds charge a management fee, which can range from 0.5% to 2% of the fund's net asset value.

This fee is used to cover the costs of running the fund, including salaries for the investment team and administrative expenses. For example, a $10,000 investment in a fund with a 1% management fee would result in a $100 annual expense.

In addition to management fees, some funds also charge a performance fee, which is typically a percentage of the fund's gains. This fee is designed to incentivize the investment team to generate strong returns. A performance fee of 20% of the fund's gains, for instance, would mean that if the fund generates a 10% return, the investment team would receive 2% of the net asset value, not 20% of the gross return.

Operating fees can eat into an investor's returns, so it's essential to understand what fees are being charged and how they impact the investment. By doing so, investors can make more informed decisions about their investments.

The Russell 2500 Index ETF is a great option for investors looking to gain exposure to a broad range of small-cap stocks.

This ETF tracks the Russell 2500 Index, which is designed to measure the performance of the 2,500 smallest companies in the Russell 3000 Index. It's a diversified fund that offers a low-cost way to invest in small-cap stocks.

When evaluating smid-cap options, it's essential to understand the differences between the Russell 2500 Index and the Russell Small Cap Completeness Index. The Russell 2500 Index is a subset of the Russell 3000 Index that carves out the smallest 2500 of the 3000 stocks represented.

The Russell 2500 Index does not take into consideration any gaps and overlaps with the S&P 500. This can lead to an incomplete picture of the broader market.

By contrast, the Russell Small Cap Completeness Index measures the performance of all Russell 3000 Index companies, excluding the S&P 500 constituents. This approach eliminates any overlap with the S&P 500 and can address gaps where they exist.

Investors often find that the Russell Small Cap Completeness Index provides a more comprehensive view of the broader market beyond the S&P 500.

The Russell 2500 has more gaps and overlaps with the S&P 500 compared to Russell Small Cap Completeness, which means an increased likelihood of having no exposure to some segments of the market or even more exposure than intended.

The Russell 2500 has 60 names held in both the Russell 2500 and S&P 500, accounting for approximately 10.1% of the Russell 2500 index.

These overlaps include well-known companies like Invesco and Ralph Lauren.

Conversely, there are 68 names held in the Russell Small Cap Completeness that are not in the Russell 2500 or in S&P 500, with the weight of these names totaling roughly 3.2% of the Russell 3000 and 22.9% of the Russell Small Cap Completeness.

Some of these stocks are household names like Spotify and DoorDash.

Using the Russell 2500 means an increased likelihood of gap risk, where a stock may not fall in the range for the Russell 2500 while simultaneously not qualifying for the S&P 500 Index.

The Russell 2500 Index ETF has a mixed track record when it comes to returns. Over the past 10 years, it has not provided a return, as indicated by the "N/A" in the Return Ranking section.

The ETF has performed relatively better over shorter periods, with a 1-year return of 14.2% and a 3-year annualized return of 3.3%. However, it's worth noting that the ETF has also experienced losses during these periods, with a 1-year return low of -8.6% and a 3-year return low of -12.8%.

In terms of dividend yield, the Russell 2500 Index ETF has a relatively low dividend yield of 1.63%. This is lower than the category high, which is 42.47%, but higher than the category low of 0.00%.

Return Trailing Ranking is a crucial aspect of evaluating investment performance. It shows how a particular investment ranks within its category over various time periods.

The table below provides a snapshot of the Return Ranking - Trailing for a specific investment. We can see that it has a YTD return of -0.8%, ranking 32.63% in its category.

Over the 1-year period, the investment has a return of 14.2%, ranking 35.32% in its category. This indicates that it has outperformed a significant portion of its peers.

The 3-year and 5-year returns are 3.3% and 8.4% respectively, with the 5-year return being the highest of the two.

Dividend Yield Analysis is a key metric to understand the potential return on investment.

SMMD's Dividend Yield is 1.63%, which is relatively low compared to the Category High of 42.47%. This suggests that SMMD's dividend payout is not the highest in its category.

In fact, the Dividend Yield of 1.63% puts SMMD at the 39.01% percentile in its category. This means that 39.01% of companies in the same category have a higher dividend yield.

Here's a comparison of SMMD's Dividend Yield to its category's Low and High:

A low dividend yield doesn't necessarily mean SMMD is a bad investment, but it's essential to consider other factors like the company's financial health and growth prospects.

The Russell 2500 Index ETF is a great way to diversify your portfolio, and understanding its sector breakdown can help you make informed investment decisions. The ETF is weighted towards Industrials, which make up 16.10% of the portfolio.

Industrials have a wide return range, from 2.46% to 37.42%. This means that the sector can be volatile, but also has the potential for high returns.

Technology is the second-largest sector, making up 15.02% of the portfolio. It has a return range of 0.00% to 43.95%, indicating that it can be a high-risk, high-reward sector.

The table below shows the sector breakdown and return ranges for the Russell 2500 Index ETF:

Overall, the Russell 2500 Index ETF has a diverse sector breakdown, with no single sector dominating the portfolio.