FTSE Russell consults the market on the Russell US Indexes Reconstitution
Overview and 2023 schedule
The Russell US Indexes are designed to reflect the ever-changing US equity market, and the annual reconstitution process is critical to maintaining accurate representation.
During this highly anticipated market event, the breakpoints between large, mid and small cap are redefined to ensure market changes that have occurred in the preceding year are captured.
Companies are also revaluated to determine where they lie along the investment styles spectrum.
2023 Reconstitution calendar
April is “ranking” month when the largest US companies are lined up to form the preliminary Russell US reconstitution portfolio. In 2023, the rank day fell on Friday, April 28.
May- and June-transition months
May is the month that the preliminary reconstitution portfolio begins to be communicated to the marketplace. Beginning on May 19, preliminary lists are communicated to the marketplace and updates are provided on May 26, June 2, June 9, June 16 and June 23.
The newly reconstituted indexes took effect after the market closed on 23 June 2023.
Related links and resources
Frequently asked questions
A: FTSE Russell believes indexes are designed to represent the entire investable opportunity set. Because markets continually change, there must be a systematic procedure in place to keep the indexes’ representation of the markets or market segments reflective of new market information. Fully reconstituting the indexes annually plus adding eligible IPOs (initial public offerings) quarterly and applying daily adjustments maintains the representative nature of the Russell US indexes while avoiding the unnecessary turnover a more frequent full reconstitution could cause.
A: Maintaining representative indexes must be weighed against the cons associated with making frequent changes to index constituents. In other words, an index must balance the precision of representation with practical and acceptable levels of turnover.
Russell research and Russell client sentiment has supported the annual rebalance schedule, as it strikes a reasonable balance between accurate representation and cost. We originally reconstituted the indices quarterly, then semi-annually. Our extensive research demonstrated that annual reconstitution of the Russell US Indices accurately represents the broad market and the market capitalization segments while minimizing the turnover required to reflect market changes.
*FTSE client sentiment supports the implementation of semi-annual rebalances for the FTSE Global Equity Index Series (FTSE GEIS). FTSE Russell will continue to engage with clients via consultations to determine if changes to either methodology are necessary. There are no current plans to change the current rebalance process for either series.
A: The 2023 reconstitution of the Russell US indexes occurred on June 23. Beginning on May 19, preliminary lists were communicated to the marketplace and updates were provided on May 26, June 2, June 9, June 16 and June 23.
A: On rank day in April (this year April 28), all eligible US securities are ranked by their total market capitalization. Companies whose stocks are listed on eligible stock exchanges and who pass investability rules are considered for inclusion in the indexes. Beginning on May 19, preliminary lists of additions and deletions to the indices were communicated to the marketplace. These changes went into effect after the close on Friday, June 23.
A: At the June 2022 reconstitution, $79.3 billion and $63.8 billion in US stocks traded in the closing moments of Friday trading on the New York Stock Exchange (NYSE) and Nasdaq exchanges, respectively.
Market capitalization ranges
Index membership and rankings are determined using total market capitalizations as of reconstitution rank date.
Market capitalization (USD as of reconstitution rank date)
As of April 28, 2023
Russell US Indexes
|Number of securities||High||Low||Medium|
|Russell Top 500||506||2,684.7B||9.7B||33.0B|
|Russell Top 200®||196||2,684.7B||37.0B||83.5B|
|Russell Top 50® Mega Cap||51||2,684.7B||146.0B||261.2B|
Russell US Indexes - Historical
|Russell 3000®||Russell 1000®||Russell 2000®|
|Largest||Smallest||Largest||Smallest||Smallest w/banding||Largest w/banding||Largest||Smallest|
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