Russell Investment Group has launched the Russell Top 50, an index that tracks the 50 largest U.S. stocks based on market capitalization. The move, which came yesterday, is likely to attract the attention of large-cap managers.
"The largest-cap companies of the market have been persistently underweighted by many active investment managers for years," said Lori Richards, senior product manager for Russell Indexes. "This could result in many funds underperforming if large-cap stocks regain their market leadership position. With the Russell Top 50, though, managers have another tool to evaluate whether their bias has caused them to underweight the largest companies."