The IPO Impact:
Why it matters how your index adds newly public companies.

 

 

Index composition can affect index performance.

You might assume all indexes automatically add qualified stocks once they've gone public. However, not all indexes do. And unless a stock is included in the index, it can’t have an impact on index performance. Do you know how your index decides when to add new IPOs? 

 

More opportunities not to miss an opportunity.

Other indexes may require a committee vote before an IPO is included. But with Russell, IPO additions are driven by the market, not a committee. Adding IPOs to Russell US Indexes not only enhances index representation, but also offers a snapshot of IPO activity across industries – providing insight into market trends and investor sentiment. 


Timing makes a difference

View the percentage change in value of select IPOs between their being added to Russell indexes and being added to S&P.

chart static

 


Historical Russell IPO Additions by Index

The number of IPOs added varies year to year, because with Russell, IPO additions are driven by the market.

by index

 


Historical IPO Additions by Industry

IPO additions represent a wide variety of industries, contributing to portfolio diversification.

by industry

 


The power of a market-driven methodology for adding IPOs.

In 2021, the Russell 1000 added 30 IPOs and the Russell 2000 added 172.

 

 

 

You have questions? We have answers.

CONTACT US