Russell Top 50 Index

What Is the Russell Top 50 Mega Cap Index?

The Russell Top 50 Mega Cap Index is a market-capitalization-weighted index of the 50 largest stocks in the broad-based Russell 3000 universe of U.S.- based equities. The Top 50 index in this way is a mega-cap index, and might be compared with the Dow Jones Industrial Average (DJIA), which contains 30 blue chip stocks.

Understanding the Russell Top 50 Mega Cap Index

The Russell Top 50 Mega Cap Index holds just 50 stocks, but since modern mega cap companies are so large, it actually addresses a large extent of all U.S. equities. Russell U.S. Indexes are the leading U.S. equity benchmarks for institutional investors. This broad range of U.S. indexes permit investors to follow current and historical market performance by specific size, investment style and other market qualities.

All Russell U.S. Indexes are subsets of the Russell 3000 Index, which incorporates the notable large-cap Russell 1000 Index and small cap Russell 2000 Index. The Russell U.S. Indexes are planned as the building blocks of a broad range of financial products, for example, index tracking funds, derivatives and Exchange Traded Funds (ETFs), as well as satisfying their job as performance benchmarks. The index can be viewed as a representation of mega-cap stocks, as the average member's market cap is more than $175 billion. The index is reconstituted every year to account for new and developing member companies.

The Russell Top 50 Mega Cap Index ordinarily pays a better than expected dividend yield, an impression of the overall safety and cash flow generation found among the largest traded companies.

Mega-Cap ETFs on the Russell Top 50 Index

Nasdaq's website ran a Zacks.com-revealed story in June 2018 featured "4 Solid Reasons to Buy Mega-Cap ETFs Now." Mega-cap generally depicts companies with a market capitalization above $300 billion. An ETF, or exchange-traded fund, regularly puts resources into a security tracking an index, an index fund, bonds, or an item.

The article examined data based in part on the Russell 2000 Index, saying that however small-cap stocks drove in the main half of the year from February to May, June is set to get a rise mega-caps.

The article records its best four proposals for investors while looking to mega-cap ETFs:

• the SPDR Dow Jones Industrial Average ETF (DIA), which Zacks says is the both the greatest and most famous ETF across the mega-cap landscape;
• the Vanguard Mega Cap Growth ETF (MGK), which takes a gander at the growth portion thus tracks the CRSP US Mega Cap Growth Index;
• the Vanguard Mega Cap Value ETF (MGV), which tracks the CRSP US Mega Cap Value Index and offers investors a source for value stocks; and
• the Invesco S&P 500 Top 50 ETF (XLG), a fund that tracks the S&P 500 Top 50 ETF Index, measuring "the cap-weighted performance of 50 of the largest companies on the S&P 500 index, mirroring the performance of U.S. mega-cap stocks." XLG will in general track the Russell Top 50 best.

Features

• In spite of have just 50 parts, the current Top 50 index membership addresses roughly 40% of the total market capitalization of the Russell 3000.
• The index can be viewed as a representation of mega cap stocks.
• The Russell Top 50 Mega Cap Index is a market capitalization weighted index of the 50 largest stocks in the Russell 3000 universe of U.S.- based equities.