All probable additions and deletions for Russell’s US equity indices will be posted on the company Web site after the markets close on June 10, according to a release from the company.
On June 17, updates to the preliminary lists will be made, taking into account corporate actions and adjustments in data on companies and their capitalization. Final index membership will take effect June 24 and remain in place for the following 12-month period.
Russell, as a benchmarking index provider, must reconstitute its indexes occasionally to accurately reflect the market. The Russell 3000 captures the 3000 largest companies by market capitalization in America. The Russell 2000 and the Russell 1000 follow similar methodologies.
“Reconstitution completely recalibrates Russell’s U.S. indexes to today’s market realities and is a key feature of truly representative benchmarks,” said Lori Richards, senior product manager for Russell indexes, in the press release. “It also serves as a clear measure of the shifts in relative valuations of value and growth stocks over the past year.”
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