Table of Contents
- What Is the Russell 1000 Index?
- Key Takeaways
- How the Russell 1000 Index Works
- Top Holdings of the Russell 1000 Index
- Performance of the Russell 1000 Index
- Investment Options
- iShares Russell 1000 Index ETF (IWB)
- iShares Russell 1000 Value ETF (IWD)
- Russell 1000 Index Variations
- Russell 1000 Index vs. Dow Jones Industrial Average vs. S&P 500
- How Will I Use This in Real Life?
- What Is the Russell 2000 Index?
- What Factors Determine Which Stocks Are Added to the Russell 1000 Index?
- Does the Russell 1000 Index Pay a Dividend?
- The Bottom Line
What Is the Russell 1000 Index?
Let me tell you directly: the Russell 1000 Index tracks the performance of the 1,000 largest publicly traded companies in the U.S., and it represents a significant portion of the overall market capitalization of U.S. equities. It's a key stock market benchmark, acting as a subset of the broader Russell 3000 index, and it's owned and operated by FTSE Russell, which is based in the United Kingdom. You should know it's considered a bellwether for large-cap investing.
Key Takeaways
Here's what you need to grasp: the Russell 1000 Index follows the 1,000 largest publicly traded companies in the U.S., making it a primary benchmark for large-cap investing. It covers about 93% of the U.S. stock market by market value and gets rebalanced every year to account for changes in company sizes. If you're looking to invest, you can access it through ETFs like iShares IWB and IWD, which provide a straightforward way to put money into a large slice of the U.S. economy.
How the Russell 1000 Index Works
The Russell 1000 was launched on January 1, 1984, by FTSE Russell, the same group that manages the Russell 3000 and Russell 2000. It's a subset of the Russell 3000 Index and is weighted by market capitalization, meaning the largest companies have the biggest impact on its performance compared to the smaller ones. This index makes up approximately 93% of the total market capitalization of all listed stocks in the U.S. equity market, and its components are reconstituted every year after the fourth Friday in June.
Top Holdings of the Russell 1000 Index
FTSE Russell ranks all stocks in the Russell 3000 by market capitalization and sets the breakpoint at the 1,000th stock to determine what's in the Russell 1000. This breakpoint is the main factor for index eligibility. You'll see many stocks move between the Russell 1000 and Russell 2000 during the annual reconstitution, with variations around that market cap breakpoint deciding the shifts.
The top 10 Russell 1000 Index constituents as of 2024
- Microsoft (MSFT)
- Apple (AAPL)
- Nvidia (NVDA)
- Amazon (AMZN)
- Meta (META)
- Alphabet Class A (GOOGL)
- Alphabet Class C (GOOG)
- Berkshire Hathaway (BRK.B)
- Eli Lilly (LLY)
- JPMorgan Chase (JPM)
Performance of the Russell 1000 Index
FTSE Russell provides monthly performance and characteristics for the Russell 1000 Index. As of May 2024, it had 1,004 holdings with an average market cap of $832 billion. The annual return was 26.53% in 2023, and the average five-year return stood at 15.42%.
Investment Options
You can invest in passively managed index exchange-traded funds (ETFs) offered by iShares, such as the iShares Russell 1000 Index ETF (IWB) and the iShares Russell 1000 Value ETF (IWD), which cater to large-cap and mid- to lower-cap portfolios.
iShares Russell 1000 Index ETF (IWB)
Many investors choose the Russell 1000 for large-cap exposure, and the iShares Russell 1000 Index ETF is one of the leading funds that gives you comprehensive investment in all its components. This is an index fund designed to match the holdings and return of the Russell 1000 Index. It was established on May 15, 2000, and trades on the New York Stock Exchange (NYSE). Importantly, its total assets under management (AUM) as of April 2025 were $37.3 billion.
iShares Russell 1000 Value ETF (IWD)
The iShares Russell 1000 Value ETF lets you track both mid- and large-cap U.S. equities based on the Russell 1000 index. It was launched on May 22, 2000, trades on the NYSE, and had AUM of $59.4 billion as of April 2025.
Russell 1000 Index Variations
FTSE Russell offers several variations derived from the Russell 1000, including Russell 1000 Value, Russell 1000 Growth, Russell 1000 Defensive, Russell 1000 Dynamic, Russell 1000 Growth-Defensive, Russell 1000 Growth-Dynamic, Russell 1000 Value-Defensive, and Russell 1000 Value-Dynamic.
Russell 1000 Index vs. Dow Jones Industrial Average vs. S&P 500
The Russell 1000 is broader than the often-quoted Dow Jones Industrial Average (DJIA) and S&P 500 Index, though all three are large-cap benchmarks. The DJIA, also known as the Dow 30, tracks the largest 30 blue-chip stocks on the NYSE and Nasdaq, excluding transport and utility companies; it's the second-oldest U.S. stock market index and represents the broader economy. The S&P 500 measures the U.S. economy and large-cap companies with 500 of the biggest by market cap.
How Will I Use This in Real Life?
You can purchase shares of the Russell 1000 Index through mutual funds or exchange-traded funds allocated by type and sector. If you don't want to invest directly in the index, go for the passively managed ETFs from iShares.
What Is the Russell 2000 Index?
The Russell 2000 Index is a small-cap stock market index that includes the smallest 2,000 stocks in the Russell 3000 Index.
What Factors Determine Which Stocks Are Added to the Russell 1000 Index?
Stocks are added or subtracted based on criteria like market capitalization, closing price, trading volume, company structure, and location.
Does the Russell 1000 Index Pay a Dividend?
The dividend yield for the Russell 1000 was 1.94% as of April 2025. The index itself doesn't pay dividends because it's just an index and not directly investable; however, if you invest in funds that track it, you'll receive dividends from the underlying companies.
The Bottom Line
The Russell 1000 is owned and operated by FTSE Russell in the United Kingdom. It's a subset of the larger Russell 3000 Index and represents the 1,000 top U.S. companies by market capitalization. As of 2024, it made up 93% of the total market capitalization of all listed stocks in the U.S. equity market.
Other articles for you
A whistleblower is someone who reports insider knowledge of illegal activities in an organization and is protected by various laws.
Joint accounts allow multiple people to share equal access and responsibility for banking or investment products.
The times-revenue method values a company by multiplying its revenue by an industry-specific factor, useful for young or high-growth firms but limited by ignoring expenses and profitability.
A flat tax applies a single rate to all incomes without deductions, contrasting with progressive systems like the U.S
A normal yield curve slopes upward, indicating higher yields for longer-term bonds due to increased risk.
Identity theft involves unauthorized use of personal information for fraud, with various types, prevention methods, and recovery steps outlined.
The natural unemployment rate represents the baseline level of unemployment in a healthy economy due to voluntary and structural factors, not cyclical issues.
Offshore finance involves conducting business, banking, or investments in foreign jurisdictions to gain benefits like tax advantages and asset protection, despite associated risks and scrutiny.
Customers are essential buyers of goods and services that drive business success through revenue and loyalty.
Extended trading enables stock transactions outside regular exchange hours through electronic networks, offering quick reactions to news but with notable risks.