Russell Announces Index Reconstitution

According to the announcement, 237 companies will move into the index, more than last year’s 208 additions but much less than the 10-year average of 437. More than half of this year’s additions are in three sectors: health care (43), consumer discretionary (39) and technology (36).

Among the 12 sectors that comprise the Russell 3000, slight changes are expected in terms of weighting within the index, the announcement said. The consumer discretionary and services sector likely will increase from 13.7% to 14.9%, while the integrated oils sector likely will decline from 5.2% to 4.8%. The financial services sector will maintain the largest segment, though it will likely dip from 23.2% to 22%.

Over the course of the year 122 IPOs joined the Russell 3000, including 21 stocks that will be added for the second quarter as part of the reconstitution process.

The Russell 3000 will continue to hold 98% of the US equity universe as a result of its annual index reconstitution process, and the total market capitalization will rise to $15.3 trillion, up from last year’s $14.3 trillion.

The Russell 3000 list and a list of additions and deletions for the Russell Microcap Index are posted on www.russell.com .

Any updates to the lists will be posted June 23. The final membership lists for the Russell 3000, Russell 2000 and Russell 1000 will be posted July 3.