2013 Russell Reconstitution Review

Russell Reconstitution 2013

What’s the Latest?

The preliminary additions and deletions for the Russell Global, Russell 3000, and the Russell Microcap indexes have been posted and Russell will make updates on June 21st and June 28th.  For information on the additions, deletions, and market capitalization ranges for the Russell U.S. Indexes click here. The final membership lists will be available after the close on Monday, July 1 and will include the entire family of indexes for the Russell Global, Russell 3000, Russell 1000, Russell 2000, Russell Midcap and Russell Microcap Indexes. As the date for the reconstitution approaches, there is generally a large increase in volume and we can expect to see some shift amidst individual company holdings as investors anticipate which companies will be in or out of which index.

View from the Floor of the NYSE

Steve Grasso, Director of Institutional Sales at Stuart Frankel & Co., and frequent commentator on CNBC said this is a liquidity opportunity in a world where everyone is participating in dark pools. He added, “these volume events are welcome opportunities for fund managers, traders, and analysts. This is also an opportunity for portfolio managers to look at individual stocks in an environment where most funds are trailing their benchmarks.” The increased volatility during this period is seen as an opportunity to gain performance, especially going into the summer when volumes dry up. Market participants definitely view this as important for their clients.

Benedict Willis III, Managing Director of Albert Fried & Company, LLC. and frequent commentator on Bloomberg, CNBC, and FOX Business, said, with the lack of major market moving news from the Federal Reserve and economic reports, this certainly is welcoming news for floor traders. Professional traders are looking forward to the volatility which is expected to continue through the end of June, as portfolio manager’s jockey themselves for positions in individual names. Although he is not heavily involved in this event, he is aware of many traders who are busy anticipating the various indices, as individual names will be reallocated in advance of the various indices change.

What are the Key Reconstitution Dates?

  • June 14 -- Preliminary additions and deletions to the Russell Global, Russell 3000, and Russell Microcap Indexes published after 3:00 p.m. PST
  • June 21 -- Updates to the list of additions and deletions are published.
  • June 28 -- Updates to the list of additions and deletions are published; Reconstitution is final after the close of the U.S. markets.
  • July 1    -- Final membership lists posted for the Russell Global, Russell 3000, Russell 1000, Russell 2000, Russell Midcap, and Russell Microcap Indexes.

How do I find out more?

The Russell reconstitution is usually one of the most highly anticipated and heaviest trading days of the year for U.S. equity markets. If you are interested in more information, please click here to register for a webinar on this year’s changes.