The Russell 1000 Index, a stock market index that tracks the 1,000 highest-ranking stocks in the Russell 3000 Index, is expected to welcome 38 new members.
Among the companies making the transition from the Index, which tracks smaller companies, are notable names such as Super Micro Computer (NASDAQ:), MicroStrategy and Carvana. These additions reflect a shift of 28 companies from the small-cap spectrum to the large-cap index.
The technology sector is getting a significant boost with seven newcomers, including Super Micro Computer and MicroStrategy.
The consumer discretionary and energy sectors are also well represented, with five companies each participating in the Russell 1000 Index; Carvana is among the notable companies in the consumer discretionary space, while Permian Resources is a major addition from the energy sector.
Other sectors such as industrial, healthcare, financial and consumer staples will also gain new representation among the remaining eleven companies.
This year’s index reconstruction 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.
In addition, eleven IPOs will be included in the Russell 2000 Index, seven of which are in healthcare, and the remainder spread across the technology, industrial, real estate and energy sectors.
Thirty companies will move from the Russell 1000 Index to the small-cap Russell 2000 Index. In addition, 116 companies will leave the Russell Microcap Index, which also includes smaller listed companies.
The healthcare sector leads this migration with 41 companies, followed by 15 companies from the financial sector and 13 companies from the technology and industrial sectors, highlighting a dynamic change in the composition of these influential indexes.
