Catherine Yoshimoto
The Russell US Indexes are reconstituted on a semi-annual basis to reflect changes in the investable US equity market. While much of the attention surrounding reconstitution focuses on companies moving between large- and small-cap indexes, the process also updates another important dimension of index membership: style.
Russell pioneered style indexes in 1987, introducing a transparent, rules-based framework for distinguishing between growth and value companies. Today, Russell US Style Indexes account for approximately two-thirds of the $12.2 trillion in assets benchmarked to Russell US Indexes. [note1]
The June 2026 Russell reconstitution highlights how style classifications evolve alongside the market itself. Here, we explore how Russell determines growth and value membership and what the latest reconstitution reveals about the style profile of some of the market's most influential companies.
Why style classification matters
Growth and value are among the most widely used concepts in equity investing, yet there is no universal definition of either style. Index providers can use different metrics, weighting schemes and classification approaches, which means the same company may be treated differently across competing style benchmarks.
For investors, those differences can have meaningful implications. Style indexes are commonly used for asset allocation, manager benchmarking and product construction, making the methodology behind a style framework just as important as the resulting index exposures.
Russell's approach is designed to provide a comprehensive and transparent representation of the US equity market. Rather than assigning companies to growth or value based on a single characteristic, the Russell methodology evaluates multiple measures of valuation and growth potential to determine each company's style profile.
Russell's style indexes are designed to work together as complementary building blocks: The growth and value indexes are constructed so that, when combined, they recreate the parent index without gaps or overlap.
Growth, value or both?
One of the distinguishing features of the Russell style methodology is that we evaluate each company using a combination of valuation and growth measures.
We represent value characteristics using a company's book-to-price ratio and growth characteristics using a combination of medium-term earnings growth forecasts and historical sales-per-share growth. Together, these metrics are used to calculate a style probability for each company (Figure 1).
Figure 1. How Russell Defines Growth and Value
As a result of this process, some companies are assigned entirely to a single style index, while others are allocated across both growth and value (see Figure 2). Companies B, C and D, with strong growth characteristics, are assigned 100% to the growth index. Companies H and F are value stocks and belong entirely to the value index. However, companies A, G and E have both growth and value traits and have their market capitalizations split between the two indexes.
Figure 2. How Russell Allocates Stocks to Growth and Value Categories
Source: FTSE Russell. For illustrative purpsoses only. Does not respresent actual data. Please see the end for important legal disclosures.
As part of the Russell US Indexes’ June reconstitution, we recalculate style assignments using the latest available data, ensuring that style membership evolves alongside changes in company fundamentals and market conditions.
June 2026 reconstitution: Notable style shifts
The June 2026 reconstitution produced several significant changes among the market's largest companies. Based on preliminary data, [note2] Alphabet and Advanced Micro Devices transitioned to 100% growth and were among the largest removals from the Russell 1000® Value Index. [note3] Other significant additions to the Russell 1000 Growth Index include Micron Technology and SanDisk, reflecting continued strength in semiconductor and computer hardware companies amid the ongoing momentum in AI. In contrast, Amazon.com moved further into value territory, landing at 92% value versus 27% value last year.
Other large technology companies shifted toward a more balanced style profile. Apple and Microsoft, which were previously classified entirely as growth, became notable additions to the Russell 1000 Value Index as their style assignments shifted to a blend of growth and value. Apple became 46% value and 54% growth, and Microsoft moved to 50% value and 50% growth.
At the June 2026 reconstitution, Space Exploration Technologies Corp will be added to the Russell 1000 Index as 90.4% growth and 9.6% value, using the available fundamental data (book-to-price ratio) and applying subsector substitution for unavailable variables. Given its status as a fast entry IPO addition at the June 2026 reconstitution, SpaceX’s style will be fully re-evaluated at the December 2026 reconstitution.
Figure 3: Growth company styles of the largest 10 companies in the Russell 3000 Index, plus Space Exploration Technologies Corp (fast entry IPO)
Company |
2026 style |
2025 style |
|---|---|---|
Nvidia |
100% growth |
100% growth |
Alphabet |
100% growth |
65% growth |
Apple |
54% growth |
100% growth |
Microsoft |
50% growth |
100% growth |
Amazon.com |
8% growth |
73% growth |
Space Exploration Technologies (fast entry IPO) |
90% growth |
N/A |
Broadcom |
100% growth |
100% growth |
Meta |
82% growth |
82% growth |
Tesla |
100% growth |
100% growth |
Walmart |
9% growth |
10% growth |
Berkshire Hathaway |
0% growth |
0% growth |
Source: FTSE Russell, data as of April 30, 2026. Data as of April 30, 2025 and April 30, 2026, respectively. Past performance is not a guide to future returns. Please see the end for important legal disclosures.
Notable companies shifting to 100% growth in 2026
Company |
2026 style |
2025 style |
|---|---|---|
Micron Technology |
100% growth |
0% growth |
Caterpillar |
100% growth |
12% growth |
Advanced Micro Devices |
100% growth |
59% growth |
Applied Materials |
100% growth |
28% growth |
SanDisk |
100% growth |
0% growth |
Source: FTSE Russell, data as of April 30, 2026. Data as of April 30, 2025 and April 30, 2026, respectively. Past performance is not a guide to future returns. Please see the end for important legal disclosures.
Looking ahead
The Russell US Indexes have returned to a semi-annual reconstitution schedule, with reconstitutions now occurring in June and December. Style index membership, however, will continue to be determined annually as part of the June reconstitution, providing investors with a consistent and comprehensive assessment of style characteristics across the US equity market.
To learn more, visit the Russell Reconstitution Hub and watch the latest episodes of the FTSE Russell Index Ideas podcast.
footnotes
[1] Data as of June 30, 2025 as reported on November 15, 2025 by eVestment for active institutional funds, Morningstar for active retail mutual funds, insurance products, and ETFs, and passive assets directly collected by FTSE Russell. AUM includes blended benchmarks and excludes futures and options. AUM data does not include active and passive assets not reported to a 3rd party source or FTSE Russell. For funds where the AUM was not reported as of June 30, 2025, the previous period AUM was used as an estimate. No assurances are given by FTSE Russell as to the accuracy of the data. | Back to Note 1
[2] Source: FTSE Russell, as of May 22, 2026. Preliminary data based on April 30, 2025 (rank date), effective at the open of June 29, 2026. | Back to Note 2
[3] Effective March 2025, Russell US Style Indexes apply a capping methodology in consideration of RIC 5/50 diversification limits. The Russell US Style Indexes that do not apply capping include “Benchmark” in the index name, e.g. Russell 1000 Growth Benchmark Index. The preliminary membership changes announced on May 22, 2026 are for the Benchmark indexes, and capped weights will be calculated after the close of June 17, 2026, effective for the open of June 29, 2026. | Back to Note 3
[4] research.ftserussell.com/products/index-notices/home/getnotice/?id=2621018 | Back to Note 4
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