Catherine Yoshimoto
With Japan’s equity market set to record another year of healthy returns, it’s time to celebrate one particular index anniversary.
In 1995, Nomura Research Institute and Frank Russell’s index team (now FTSE Russell) teamed up to launch a new Japanese equity index series, providing a better benchmark than existing solutions.
That series—called the Russell/Nomura Japan Equity Indexes—is now 30 years old and it’s still fulfilling its central promise: providing a comprehensive, modular and transparent set of indexes for Japan’s stock market.
Since its inception, the pioneering index series has provided a comprehensive benchmark for Japan’s equity market, introducing a complete series of free float-adjusted, size and style-based indexes that transformed how investors measure and manage Japanese equity returns.
Index overview
The Russell/Nomura Japan Equity Indexes offer historical index data from 1979, providing an unprecedented snapshot of Japanese equities’ roller-coaster ride: the 1980’s bull market, the post-1989 slump in Japanese shares and the more recent return to bull market conditions.
Russell/Nomura Japan Equity Indexes (Dec 1979= 100)
The Russell/Nomura Japan Equity Indexes offer a comprehensive suite of size and style-based benchmarks, providing investors with transparent tools for portfolio construction and performance evaluation across large-cap, mid-cap, small-cap, micro-cap stocks and their growth and value segments.
In common with the Russell US Indexes, the popular benchmark for the US stock market, on which the Russell/Nomura Japan Equity Indexes’ design is based, index users can easily subdivide the Japanese stock market into modular sub-indices.
For example:
- The Russell/Nomura Total Value index and the Russell/Nomura Total Growth index add up to the Russell/Nomura Total Market index.
- The Russell/Nomura Top Cap index and the Russell/Nomura Mid Cap index add up to the Russell/Nomura Large Cap index
- The Russell/Nomura Prime index is the Russell/Nomura Total Market index minus the Russell/Nomura Micro Cap index.
In this way, the design of the index series ensures that index users are equipped with a comprehensive and flexible set of tools for use in portfolio analysis and construction.
Past performance is not a guide to future returns. Please see the end for important legal disclosures.
November 2025 Reconstitution highlights
The annual Russell/Nomura reconstitution ensures that the indexes reflect current market conditions. This year’s update was finalized after market close on November 19, 2025 and implemented on November 20, 2025, based on the market capitalisation of constituents as at the end of October.
Regular reconstitution is critical for maintaining index accuracy and relevance. By adjusting for changes in market capitalization (size) and style, the Russell/Nomura series provides market participants with benchmarks that reflect ongoing changes in Japan’s investable equity universe.
2025 Reconstitution changes
Turnover Across Segments: The broadest index within the range, the Russell/Nomura Total Market index, saw 81 additions and 59 deletions, increasing the index’s constituent count from 1,278 to 1,300 names. The Russell/Nomura Prime Index (designed for use in passive investment strategies) was rebalanced to once again include 1,000 names.
Size and Style Adjustments: The index series was updated across large-cap, small-cap, micro-cap and their growth and value segments, mirroring shifts in Japan’s equity landscape.
Commitment to Transparency: All index changes were pre-announced, with detailed constituent and corporate action files available on NFRC’s website.
A 30-year milestone
For three decades, the Russell/Nomura partnership has delivered innovative solutions for Japanese equity investors, providing insights into the different size, style and sector segments of the Japanese equity market.
As the series enters its fourth decade, it remains committed to its mission: providing clarity and consistency across Japan’s equity market.
Learn more
For detailed reconstitution data and methodology, visit:
FTSE Russell – Russell/Nomura Reconstitution: https://www.lseg.com/en/ftse-russell/russell-reconstitution/nomura
Nomura Fiduciary Research and Consulting: Russell/Nomura Japan Index - Nomura Fiduciary Research & Consulting NFRC
Disclaimer
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