According to a press release, Russell will post lists of probable additions and deletions for the Russell Global Index and the U.S. broad-market Russell 3000 Index on its website after the markets close on Friday, June 13.
Updated lists, if necessary, will be posted on June 20 and June 27. Membership changes to Russell’s family of indexes will take effect as markets close that final Friday of June and remain in place for the ensuing 12-month period.
The communications process will continue the following Monday, June 30, when Russell posts its official new membership lists for the Russell Global and Russell 3000 indexes as well as the large-cap Russell 1000Â® Index, small-cap Russell 2000Â® Index, Russell Midcap Index and Russell Microcap Index.
“Reconstitution is an essential element for truly representative benchmarks in order to systematically mirror changes in the equity market, such as capitalization and style movement globally,” said Lori Richards, director of client service for Russell Indexes.
Richards added that the annual reconstitution process also recalibrates the firm’s style indexes so they reflect any shifts in relative valuations of value and growth stocks over the past year. Since the indexes were reconstituted last year on June 25, for example, U.S. small caps underperformed U.S. large caps through March 21 by 717 basis points while U.S. growth stocks outperformed U.S. value stocks by 567 basis points. Similarly, but to a lesser degree, the Russell Global Small Cap Index underperformed the Russell Global Large Cap Index by 478 basis points during that period.
Visitors to Russell.com can find a complete summary of Russell’s index methodology here .