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The Russell 1000 Index and the S&P 500 are both widely used benchmarks for large-cap U.S. stocks, but they have some key differences:
1. Composition:
o S&P 500: Includes 500 of the largest U.S. companies, strictly large-cap stocks.
o Russell 1000: Includes 1,000 of the largest U.S. companies, covering both large-cap and some mid-cap stocks1.
2. Market Coverage:
o S&P 500: Represents about 80% of the U.S. stock market.
o Russell 1000: Represents about 92% of the U.S. stock market2.
3. Volatility:
o The Russell 1000 is perceived to be slightly more volatile than the S&P 500 due to its inclusion of mid-cap stocks1.
4. Rebalancing:
o S&P 500: Managed by a committee that decides on stock inclusion and exclusion.
o Russell 1000: Follows a more straightforward and transparent methodology, with quarterly IPO additions and an annual reconstitution3.
5. Performance:
o Historically, both indices have shown similar performance trends, though the Russell 1000 may capture more growth from mid-cap stocks during bullish markets1.
Would you like to see a specific performance comparison over a certain period, or is there another aspect you’re curious about?
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