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Night In The RUTs

The ticker for the Russell 2000, which is the bottom 2000 stocks of the Russell 3000 index, is RUT. RUT is an index of small- and medium-sized companies with a mean market cap of $900 million.

Traditionally, it performs better than large blue-chip stocks but that hasn’t been the case of late.

Investors have been chasing the “Magnificent Seven” stocks for the past ten or fifteen years. These stocks have grown so big that they make up 32% of the weighting of the S&P 500.

Meanwhile, the small-cap stocks as represented by the Russell 2000 make up just 3% of active portfolios.

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This post originally appeared at Pro Trader Today.