The Annual Rebalancing of Russell Indices

Each year in June, the Russell stock market indices are rebalanced to include all eligible public companies that fall within certain market capitalization ranges. In industry parlance, this is referred to as reconstitution. This involves ranking U.S. listed companies by market capitalization on a scheduled date, which fell on Friday, May 7th this year. The 1,000 largest companies on that date were selected for inclusion in the Russell 1000 Index and the next 2,000 largest companies by market capitalization were chosen for the Russell 2000 Index. The threshold for index inclusion varies each year as the market’s valuation of companies changes. Companies move in and out of these indices based on their stock price performance.