Global index provider FTSE Russell rebalances its US market cap weighted indexes, most notably the US large cap Russell 1000 Index and US small cap Russell 2000 Index, once a year at its annual index reconstitution, refreshing the indexes to accurately reflect current market conditions. The newly reconstituted indexes, which begin the Monday after the conclusion of Russell reconstitution, are used by investors to measure US markets the following year.
And in the past eight months since newly rebalanced Russell US Indexes “class of 2017” began on June 26, 2017, index performance has reflected a US market driven by the largest of large cap stocks, with a strong tilt toward growth-oriented stocks over value-oriented. Since June 26, 2017, in fact, the Russell 1000 Growth Index has risen nearly 20%. And the index has risen nearly 7% thus far in 2018 in spite of renewed US equity market volatility.
Tom Goodwin, senior index research director, FTSE Russell:
“Russell US index reconstitution is a critical time for our widely followed US indexes, particularly the US large cap Russell 1000 Index and US small cap Russell 2000 Index as well as the Russell growth and value indexes. The fine-tuning of our US indexes helps us accurately measure and track notable trends in the US equity landscape in the subsequent year to help our clients.”
In June, FTSE Russell will begin the process for its next annual Russell US index reconstitution, as announced in a recent press release. Get more information on Russell reconstitution on the FTSE Russell website.
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