The Russell 1000 Index, a stock index that tracks the top 1,000 stocks in the Russell 3000 Index, is expected to welcome 38 new members.
Among the companies leaving the Russell 2000 index, which tracks smaller companies, are notable names such as Super Micro Computer (NASDAQ:SMCI), MicroStrategy and Carvana. These additions reflect the movement of 28 companies from the small-cap index to the large-cap index.
The technology sector is experiencing significant growth with seven new entrants, including Super Micro Computer and MicroStrategy.
The consumer discretionary and energy sectors are also well represented, with five companies each joining the Russell 1000 Index; Carvana is among the notable consumer discretionary companies, while Permian Resources is a key addition to the energy sector.
Other sectors such as industrial products, healthcare, financial services and consumer staples will also see new representation from the remaining 11 companies.
This year’s index reconstitution is also notable for the inclusion of three recent initial public offerings (IPOs) directly into the Russell 1000 Index, representing the technology, consumer discretionary and industrials sectors.
Additionally, 11 IPOs will be listed in the Russell 2000 Index, with healthcare IPOs accounting for seven of them, with the remainder split between the technology, industrials, real estate and energy.
30 companies will move from the Russell 1000 Index to the smaller-cap Russell 2000 Index. Additionally, 116 companies are expected to exit the Russell Microcap Index, which includes smaller public companies.
The healthcare sector leads this migration with 41 companies, followed by 15 financial companies and 13 technology and industrial companies, highlighting a dynamic shift in the composition of these influential indices.
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