Russell Top 50 Index
A market capitalization weighted index of the 50 largest stocks in the Russell 3000 universe of U.S.-based equities. The index can be considered a representation of mega cap stocks, as the average member's market cap is more than $175 billion.
The index is reconstituted annually to account for new and growing member companies. Investopedia Says:
Because modern mega cap companies are so large, even though the index holds just 50 stocks it still represents a large proportion of all U.S. equities. For example, in 2007, the market cap of the stocks in the Russell Top 50 Index accounted for more than 40% of the total market capitalization of all U.S.-based equities.
The Russell Top 50 Index also pays an above average dividend yield compared to the S&P 500, a reflection of the general safety and cash flow generation found among the largest traded companies. Related Terms:
Blue Chip
Market Capitalization
Mega Cap
Russell 3000 Index |