To reflect the present situation of the U.S. equities market, index producer, FTSE Russell plans to rebalance its stock benchmarks on Friday.
It’s no surprise that this year’s reshuffle contains big shifts, given the recent volatility in the market. Changes will be implemented after the end of Friday’s trading exchanges.
It was the first time since 2019 that the five biggest businesses in the Russell 3000 and Russell 1000 indexes changed positions. Topping the list of the index’s largest companies, the stock of Tesla Motors, Inc. (TSLA) has leapfrogged Meta Platforms, Inc. (META) by a mere 0.40 percent (ticker: TSLA). Alphabet GOOGL –0.05 percent (GOOGL) replaces Amazon.com (AMZN) as the third-biggest company, although Apple AAPL –0.38 percent (AAPL) and Microsoft MSFT –0.24 percent (MSFT) will remain the largest and second-largest, respectively.
This year’s top ten list includes UnitedHealth Group and Nvidia, who came in at number 8 and number 9 respectively.
The Russell 1000 index is seeing an increase in the number of energy-related firms, which formerly traded in the Russell 2000 index. Antero Resources, Chesapeake Energy, Ovintiv, PDC Energy, Range Resources, and Southwestern Energy are all included in this group ( SWN ).
Energy is this year’s outstanding category, topping the other industries in terms of index performance and the number of businesses graduating from the Russell 2000 index to the Russell 1000 index, according to Catherine Yoshimoto, director of product management for the Russell U.S. indexes.
Recalibrating each June, the Russell U.S. index family reflects the current situation of the American equities market by adjusting its weights. FTSE Russell estimates that over $12 trillion in investor assets are benchmarked to or invested in Russell U.S. index-based products after the reconstitution, which is generally one of the busiest trading activity days of the year.