Russell reconstitution 2026 is approaching: here’s what you need to know

For more than forty years, the Russell US Indexes have mapped the composition of the investable US equity market using a simple, transparent and consistent approach.

One of the questions we’re most often asked by C-suite executives is: “How can my company join the Russell US Indexes?” 

Unlike some other popular US equity indexes, there’s nothing subjective about the Russell US Indexes’ inclusion criteria. [note1] There’s no committee deciding who joins. If a company’s stock meets the eligibility rules, it qualifies.

Here’s a summary of the high-level criteria^[2]. 

In today’s global marketplace, determining a company’s nationality is not always straightforward. Many companies operate internationally and maintain multiple legal entities. A corporation may be incorporated in one jurisdiction, have its headquarters in another, be tax-resident in a third country and have its assets and revenues distributed globally. 

Here’s how we define nationality for the purpose of the Russell US Indexes: if a company is incorporated in, has its headquarters in and its shares are traded on a standard exchange^[3] in same country, it’s assigned that country’s nationality. 

Microsoft, for example, is incorporated and headquartered in the US state of Washington. Its shares are traded on the Nasdaq stock exchange, based in New York. So, it’s clearly a US stock for the purposes of the Russell US Indexes.

However, if any of the above three criteria (country of incorporation, country of headquarters or location of share listing) do not match, we conduct a series of checks, the full details of which can be read in the index ground rules. 

The general idea is to define three indicators of nationality, then to cross-reference them against the location of a company’s assets or revenues. If the results are still inconclusive, the location of the company’s headquarters or of its most liquid stock exchange listing makes the final determination.

Not all index firms define nationality in the same way, so it’s worth reading this section of the index rules carefully if your company has a complex legal and operational structure. We hear from market participants how much they appreciate the transparency FTSE Russell provides into the rules of inclusion-based nationality attributes.

Equities traded on the CBOE, NYSE, NYSE American, NYSE ARCA and Nasdaq exchanges are eligible for inclusion in the Russell US Indexes. Bulletin board, pink-sheet or over-the-counter (OTC) traded securities are not eligible for inclusion, nor are securities for which prices are displayed on the FINRA Alternative Display Facility (ADF).

A stock must have a closing price at or above $1.00 on its primary exchange on rank day (see below for a definition of rank day) to be eligible for inclusion. To reduce unnecessary index turnover, a 30-day average stock price is used for existing index members. A company must have a total market capitalization of $30 million or greater on rank day to be eligible for index inclusion.

The following company structures are excluded from the Russell US Indexes: royalty trusts, US limited liability companies, closed-end investment companies, blank check companies, special-purpose acquisition companies (SPACs) and limited partnerships. Exchange-traded funds (ETFs) and mutual funds are also excluded.

The following types of shares are excluded from the indexes: preferred and convertible preferred stock, redeemable shares, preferred stock participating, warrants, rights, depositary receipts, installment receipts and trust receipts.

Companies must have a minimum 5% free float^[4] to be eligible for the Russell US Indexes. At least 5% of voting rights, aggregated across all a company’s equity securities, must be in the hands of unrestricted shareholders.

Starting in 2026, FTSE Russell will return  to a semi-annual reconstitution of the Russell US Indexes, with the first reconstitution happening in June (at the launch of the Russell US Indexes in 1984, the indexes were reconstituted quarterly, with the reconstitution frequency changing to semi-annual in 1987 and annual in 1989). The first rank day, on which index eligibility is assessed, occurs on the last business day of April (April 30, 2026).

May and June are transition months for the Russell US Indexes. Beginning on May 22, the preliminary constituent lists are communicated to the marketplace and updates are provided on May 29, June 5, June 12, and June 18. These updates reflect changes that may occur between rank day and the reconstitution, including eligibility adjustments that affect additions and deletions. Publishing updated lists throughout the reconstitution process helps maintain transparency and allows market participants to monitor expected index membership ahead of the effective date. The newly reconstituted indexes take effect after US market close on June 26.

Stocks must be listed on rank day and FTSE Russell must have access to documentation on that date supporting the company’s eligibility for index inclusion. This includes the corporate description, the verification of incorporation, the number of shares outstanding and other information needed to determine eligibility. 

Similarly, the second 2026 semi-annual reconstitution of the Russell US Indexes will take effect after the close of the second Friday in December, based on data from the second index rank day, the last business day in October. However, for the December reconstitution, changes to the Russell US Style Indexes will only be made with respect to index additions and deletions or movements between the Russell 1000 and Russell 2000 (see below for further detail on eligibility for the Russell US Style Indexes).

Shares are included in the Russell indexes at their investable market capitalization, i.e., after adjustment for any free float restrictions. 

As of the April rank day, we also calculate index constituents’ style attributes, which determine their membership in the Russell US Style—Growth and Value—indexes, which currently represent about two-thirds of all assets benchmarked to a Russell index. Russell US Style Indexes are fully reconstituted each June, along with other Russell US Indexes. Russell US Style Indexes also apply a capping methodology to help funds tracking the indexes stay within registered investment company (RIC) 5/50 diversification limits, while maintaining exposure to growth and value stocks.

For the December semi-annual reconstitution, Russell US Style Index changes will be made only to new additions or membership movements: for example, if a stock moves from the Russell 1000 Index to the Russell 2000 Index (or vice versa). This is to prevent the extra index turnover that would occur if FTSE Russell updated all stocks’ style membership twice a year.

We add eligible IPOs to the Russell US Indexes each quarter (in March, June, September and December), ensuring that new additions to the investable equity universe are reflected in representative indexes. More details are available in the methodology guide. Please note that FTSE Russell has recently consulted the market on whether to add eligible significant-sized IPOs outside of the quarterly review periods.

According to Nasdaq, “[b]eing included in an index is important for companies….Not surprisingly, [Nasdaq’s] studies of Russell inclusions show that index inclusion almost always brings new long-term investors into a company’s shareholder base and, with that, increased liquidity and trading.” 

If you are joining the Russell US Indexes during the upcoming 2026 reconstitution, you can find additional resources on our dedicated webpage, including the templates for press releases. The first preliminary list of additions to the Russell US Indexes will be announced after 6pm EST on May 22, 2026—see you then!