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The Russell 2500 Index: Running the anchor leg

By: Mat Lystra, senior research analyst

In a relay race, the anchor leg is the final of four 100 meter sprints and is typically run by the fastest member of the team. But should the fastest runner always go last? One of the highest performing segments of the market for many years has been midcap. Midcap generally receives less attention than its better known large cap and small cap counterparts. But what if you repositioned midcap so that instead of running the anchor leg, they were first off the blocks by being grouped with small caps? The Russell 2500 Index does just that, allowing midcaps to run the first leg of the relay and have a bigger impact on the outcome.