The Russell 2000 index is designed to measure the performance of 2,000 small-cap companies in the U.S. stock market. It’s often used as an indicator of the health of smaller businesses and the domestic economy. These companies are typically far less prominent than the blue-chip giants included in the Dow Jones Industrial Average. While the Russell 2000 is an important tool for investors looking at growth potential and volatility in smaller firms, it is not composed of 30 major companies — in fact, its large size and focus on emerging companies make it quite the opposite. Understanding the Russell 2000’s role helps investors balance large-cap stability with small-cap opportunity, but it’s not the answer to this question.