Anyone here can explain this Index IWM chart ? Weighting doesn't make sense to me

T

TradeTune

Hi,

Russell 2000 index is trading sideway from Jan 2021 until now and trading at $211.
But mid size cap stock has good badly hammered in last six month and their price today is at the price that used to be 1st quarter of 2020.

Why stocks is Russell 2000 has dropped so much, but the index has not pull back to price range of $140-160 ? I hope i could express my question clearly . Thank you for help.


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AMC, MRNA, EBAY, GTT, CZR, etc
I guess one stock that goes up 1500% can replace 30 stocks that lost 50% of value each.
 
%%
TWM or TZA made sense to me ;
closing above 50dma.[Actually @ first glace looks like your data is bad, maybe ok , my chart is 52 weeks......TZA uptrending since JUNE]:caution::caution:
 
guru said:
AMC, MRNA, EBAY, GTT, CZR, etc
I guess one stock that goes up 1500% can replace 30 stocks that lost 50% of value each.
More...

Most this stocks are L or L+ cap .. are you sure stocks like MRNA or Ebay is part of Russell 2000 index ?
 
TradeTune said:
Most this stocks are L or L+ cap .. are you sure stocks like MRNA or Ebay is part of Russell 2000 index ?
More...


I found them here, but looks like they mixed up some NASDAQ stocks in the article (I was looking on my phone and didn't notice):
https://archive.wealthpress.com/best-performing-russell-2000-stocks-2021/

However, AMC is in Russell 2000:
https://www.google.com/search?q=Russell+2000+top+stocks+AMC

Anyway, you need to do your own research and explain what specific number for the index you get. No one else will calculate this for you, while the index is the replacement for such calculations.
 
Here is a better article:
https://www.bankrate.com/investing/what-is-russell-2000/
============
Here are the top 10 companies that make up the Russell 2000 as of August 2021:
  1. AMC Entertainment (AMC) - up 1500%
  2. Intellia Therapeutics (NTLA) - up 600%
  3. Crocs (CROX) - up 250%
  4. Tenet Healthcare (THC) - up 160%
  5. Lattice Semiconductor (LSCC) - up 92%
  6. II-VI (IIVI)
  7. EastGroup Properties REIT (EGP)
  8. TETRA Technologies (TTI)
  9. Arrowhead Pharmaceuticals (ARWR)
  10. BJ’s Wholesale Club (BJ)
============
 
SunTrader said:
AMC is a little over 3% of R2K so it's effect is "relatively" speaking not as much as people give it credit for.
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If it went up 1500% again, it would add 45% to R2K.
Though the point is that any one stock that goes up by 200% (from $1 to $3) can replace 4 stocks that drop by 50% (each dropping from $1 to $0.50), or 8 stocks that drop by 25%. This is with small/equal weighing.
When a few companies get killed, the business is usually taken over by another one. Similarly with investors' money - they can move from several stocks into one, even without fundamentals.
 
SunTrader said:
AMC is a little over 3% of R2K so it's effect is "relatively" speaking not as much as people give it credit for.
More...
%%
That;
+ that top 10 list = 2.94%. No wonder its a downtrend....................................................................................................................
 
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