The 2008 Russell Index Reconstitution
The 2008 Russell Index Reconstitution took place on Friday, June 27. Below are some interesting highlights with respect to the Russell U.S. and Global Indexes.
Russell U.S. Equity Index Changes Due to Reconstitution
- Overall, the U.S. market capitalization has decreased by $2 trillion, from $18.5 trillion at last year’s reconstitution to $16.5 trillion at this year’s reconstitution.
- With respect to the Russell 3000, 276 companies were added, and 169 companies were deleted. The largest addition to the Russell 3000 was Visa Inc. (0.29%).
- Financial service companies led the list of additions, accounting for 21% of new adds, followed closely by healthcare with 19%.
- At reconstitution, the market cap range for the Russell 1000 was $1.4b to $469b, and for the Russell 2000 the market cap range was $167m to $2.8b.
- The largest movers in the indexes were energy and financial stocks.
- The weight of financial services stocks increased in the Russell 2000 (+1.09%) as companies moved down from the Russell 1000.
- The weight of energy stocks declined in the Russell 2000 (-1.54%), as companies graduated to the Russell 1000.
Russell Global Equity Index Changes Due to Reconstitution
- Overall, the Global market capitalization decreased from $50.5 trillion at last year’s reconstitution to $49.7 trillion this year.
- Excluding the U.S., 962 companies were added to the Russell Global Indexes, with India and Canada having the most new additions.
- Securities from seven new countries joined the Russell Global Indexes at reconstitution: Kazakhstan, Latvia, Qatar, Slovak Republic, Tunisia, Ukraine, and Vietnam.
- With the exception of Russia, small cap stocks accounted for the significant majority of new additions in the top 20 countries.
- The market cap range for the Russell Global Large Cap Index was $1.4b to $469.0b (ex-Japan).
- The market cap range for the Russell Global Small Cap range was $166m to $3.1b (ex-Japan).
- The top three Global sectors in terms of additions were materials and processing, financial services, and consumer discretionary.