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Index IDEA: Catching up with Russell US indexes reconstitution class of 2017

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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All information is provided for information purposes only. Every effort is made to ensure that all information given in this publication is accurate, but no responsibility or liability can be accepted by any member of the LSE Group nor their respective directors, officers, employees, partners or licensors for any errors or for any loss from use of this publication or any of the information or data contained herein.

Views expressed by Tom Goodwin of FTSE Russell are as of February 28 and subject to change. These views do not necessarily reflect the opinion of FTSE Russell or the LSE Group.

No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE Russell Indexes or the fitness or suitability of the indexes for any particular purpose to which they might be put.

No member of the LSE Group nor their respective directors, officers, employees, partners or licensors provide investment advice and nothing in this IDEA should be taken as constituting financial or investment advice. No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any representation regarding the advisability of investing in any asset. A decision to invest in any such asset should not be made in reliance on any information herein. Indexes cannot be invested in directly. Inclusion of an asset in an index is not a recommendation to buy, sell or hold that asset. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.

No part of this information may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the applicable member of the LSE Group. Use and distribution of the LSE Group index data and the use of their data to create financial products require a licence from FTSE, Russell, FTSE TMX, MTSNext and/or their respective licensors.

Past performance is no guarantee of future results. Charts and graphs are provided for illustrative purposes only. Index returns shown may not represent the results of the actual trading of investable assets.

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