Once Again, Small Is Beautiful

The Russell 2000's new faces are drawing plenty of attention as small-caps, particularly value stocks, continue to post tidy gains

Every summer, fund managers sift through a heap of research on the annual rebalance of the Russell 2000 -- the benchmark index of small-cap stocks -- in which new companies are added and others are dropped for various reasons. Investors scurry to anticipate the changes because they know that being added can send a company's shares soaring, since they'll suddenly be purchased by all index funds that model the Russell 2000.

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