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Have you ever heard of the “Russell 3000”? 
This index MAY be the best benchmark of the US stock market
Can you buy it?
Let’s find out
(thread)
This index MAY be the best benchmark of the US stock market
Can you buy it?
Let’s find out
(thread)
The Russell 3000 is an index that measures the performance of the 3,000 largest publicly held companies in America
This index represents approximately 98% of the American public equity market
WOW
This index aims to be THE benchmark of the entire US market
This index represents approximately 98% of the American public equity market
WOW
This index aims to be THE benchmark of the entire US market
A list of 3,000 companies would take quite some time 
So I am going to list the TOP 10 holdings (as of Dec 2019)
I’m sure these won’t surprise you, as these are VERY popular companies
So I am going to list the TOP 10 holdings
(as of Dec 2019) I’m sure these won’t surprise you, as these are VERY popular companies
$AAPL 
$MSFT
$AMZN
$FB
$BRK.B
$JPM
$GOOGL
$GOOG
$JNJ
$V
How many of these do you own?
I own 8 of these
Some in my dividend portfolio!
Others in my index funds!
$MSFT
$AMZN
$FB
$BRK.B
$JPM
$GOOGL
$GOOG
$JNJ
$V
How many of these do you own?
I own 8 of these
Some in my dividend portfolio!
Others in my index funds!
What about index funds that mimic the Russell 3000?
Here are a couple:
$IWV
$VTHR
$VRTTX
Having diversification among 3000 companies isn’t a bad idea
I’ll show you why....
Here are a couple:
$IWV
$VTHR
$VRTTX
Having diversification among 3000 companies isn’t a bad idea
I’ll show you why....
Take a look at these historical returns
10 year average return: 14.94%
5 year average return: 13.86%
3 year average return: 13.95%
1 year average return: 21.44%
1 month average return: 7.24%
(as of 8/31/2020, from Vanguard’s website)
10 year average return: 14.94%
5 year average return: 13.86%
3 year average return: 13.95%
1 year average return: 21.44%
1 month average return: 7.24%
(as of 8/31/2020, from Vanguard’s website)
Remember, past performance does not predict or project future performance!
BUT
That is a strong 10 year return chart for the Russell 3000 index
BUT
That is a strong 10 year return chart for the Russell 3000 index
As the possible benchmark of the entire US stock market, the Russell 3000 is a great index to look at the gauge how the overall market is doing!
Remember, it measures 3000 companies who represent approximately 98% of the American public equity market
Remember, it measures 3000 companies who represent approximately 98% of the American public equity market
Lastly, always make sure to do your research when investing
None of this thread is investing advice!
Just a quick lesson on yet ANOTHER index
I hope you enjoyed and learned something new today!
Much love, as always!
@DecadeInvestor
None of this thread is investing advice!
Just a quick lesson on yet ANOTHER index
I hope you enjoyed and learned something new today!
Much love, as always!
@DecadeInvestor
