After a dramatic decline that began in late September, the Russell 2000 Index climbed 25% to finish 2008 down 30% on the year.

IWM

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The Russell 2000 consists of the 2,000 smallest companies in the Russell 3000 Index which measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market.

The $11 billion Russell 2000 Index Fund (IWM) is managed by iShares, carries an expense ratio of 0.20% and has a beta of 1.27 against the S&P 500.  For other ways to gain exposure to the Russell 2000 index, check out the Russell 2000 Growth Index Fund (IWO), and the Russell 2000 Value Index Fund (IWN).

ProShares has a series of leveraged and short funds tied to the Russell 2000 index including the Ultra Russell2000 (UWM),  the Short Russell2000 (RWM), and the UltraShort Russell2000 (TWM).

See the ETF Directory for a complete listing of MarketCap ETFs.