We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The popular Russell indexes are set to get the customary new look this month. Every year, on the fourth Friday of June, the Russell 1000, Russell 2000, Russell 3000 and other Russell indexes undergo a rebalance. The shake-up has historically triggered major market volatility in dozens of reshuffled stocks.
The rebalance will likely have a significant impact with a growing number of technology stocks in the Russell 1000 and more healthcare stocks in the Russell 2000. ETFs targeting the Russell Indices are currently in focus. These include iShares Russell 1000 ETF (IWB - Free Report) , Vanguard Russell 1000 ETF (VONE - Free Report) , iShares Russell 2000 ETF (IWM - Free Report) , Vanguard Russell 2000 ETF (VTWO - Free Report) and iShares Russell 3000 ETF (IWV - Free Report) .
Russell 1000: A Big Shake-Up
Most of the change will come in the Russell 1000 index, which tracks the highest-ranking 1,000 stocks in the Russell 3000 Index. About 39 new companies are set to join the Russell 1000 index, including 28 companies that will be upgraded from the small-cap spectrum to the large-cap index. Stocks that have been outperformers in the Russell 2000 will now qualify for the Russell 1000 index. Super Micro Computer Inc., Microstrategy, Carvana, Permian Resources and Comfort Systems USA are some of them.
Technology, Consumer Discretionary and Energy will be the leading sectors in the Russell 1000 Index after the rebalance. Other sectors such as Industrials, Health Care, Financials, and Consumer Staples will also see new representation with the remaining 11 companies.
For the first time since 2020, Microsoft will win back the largest company position from Apple in the Russell 3000 and Russell 1000 Indexes. Nvidia will move to third place, pushing Alphabet to fourth position. The fifth-largest company, Amazon.com, will replace Berkshire Hathaway (now seventh), followed by Meta Platforms in the sixth place. Broadcom, a semiconductor company, will now rank ninth, marking the most significant jump among the largest 10 companies, from 24th in 2023. Eli Lilly will replace Exxon Mobil in the eighth position and Tesla will round out the list of the 10 largest companies (read: NVIDIA in Rush to Overtake Apple: ETFs Set to Gain Further).
“Magnificent Seven” (Microsoft, Apple, Nvidia, Alphabet, Amazon.com, Meta, Tesla) increased their combined total company market capitalization by 43.5% to $13.2 trillion from last year’s $9.2 trillion.
At this year’s reconstitution, three recent initial public offerings (IPOs) will be added to the Russell 1000 Index (one company each from Technology, Consumer Discretionary and Industrials), and 11 IPOs are being added to the Russell 2000 Index. Seven of the Russell 2000 IPO additions represent Health Care, with the remaining four representing Technology, Industrials, Real Estate and Energy industries.
Other Russell Indices Shake-Up
Health Care companies will replenish the Russell 2000 Index with seven of the 11 IPO additions. Some notable new additions to the Russell 3000 will be Ocugen, Eledon Pharmaceuticals, NN Inc. and Bitcoin Depot. Computer maker Dell Technologies will enter the Russell 3000 for the first time.
While 30 companies will transition from the Russell 1000 Index to the smaller-cap Russell 2000 Index, 116 companies are set to graduate from the Russell Microcap Index, which includes smaller public companies.
iShares Russell 1000 ETF offers exposure to large U.S. companies by tracking the Russell 1000 Index. It has amassed $35.5 billion in its asset base and trades in an average daily volume of 611,000 shares. It charges 15 bps in annual fees and has a Zacks ETF Rank #3 (Hold).
Vanguard Russell 1000 ETF also tracks the performance of the Russell 1000 Index, charging 8 bps in annual fees. It has AUM of $4.7 billion and trades in average daily volume of 56,000 shares. VONE has a Zacks ETF Rank #3 (read: 5 ETFs Leading the Small-Cap Rally).
iShares Russell 2000 ETF is the largest and most popular ETF in the small-cap space, with an AUM of $58 billion and an average daily volume of 27 million shares. It charges 19 bps in annual fees and has a Zacks ETF Rank #2 (Buy).
Vanguard Russell 2000 ETF tracks the Russell 2000 Index, charging 10 bps in annual fees. It has accumulated $9 billion in its asset base and trades in an average daily volume of 1.1 million shares. The product has a Zacks ETF Rank #3.
iShares Russell 3000 ETF tracks the Russell 3000 Index, charging 20 bps in annual fees. It has amassed $13.7 billion in its asset base and trades in 112,000 shares a day on average. IWV has a Zacks ETF Rank #2.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
ETFs Worth a Look on Russell Indexes' Shake-Up
The popular Russell indexes are set to get the customary new look this month. Every year, on the fourth Friday of June, the Russell 1000, Russell 2000, Russell 3000 and other Russell indexes undergo a rebalance. The shake-up has historically triggered major market volatility in dozens of reshuffled stocks.
The rebalance will likely have a significant impact with a growing number of technology stocks in the Russell 1000 and more healthcare stocks in the Russell 2000. ETFs targeting the Russell Indices are currently in focus. These include iShares Russell 1000 ETF (IWB - Free Report) , Vanguard Russell 1000 ETF (VONE - Free Report) , iShares Russell 2000 ETF (IWM - Free Report) , Vanguard Russell 2000 ETF (VTWO - Free Report) and iShares Russell 3000 ETF (IWV - Free Report) .
Russell 1000: A Big Shake-Up
Most of the change will come in the Russell 1000 index, which tracks the highest-ranking 1,000 stocks in the Russell 3000 Index. About 39 new companies are set to join the Russell 1000 index, including 28 companies that will be upgraded from the small-cap spectrum to the large-cap index. Stocks that have been outperformers in the Russell 2000 will now qualify for the Russell 1000 index. Super Micro Computer Inc., Microstrategy, Carvana, Permian Resources and Comfort Systems USA are some of them.
Technology, Consumer Discretionary and Energy will be the leading sectors in the Russell 1000 Index after the rebalance. Other sectors such as Industrials, Health Care, Financials, and Consumer Staples will also see new representation with the remaining 11 companies.
For the first time since 2020, Microsoft will win back the largest company position from Apple in the Russell 3000 and Russell 1000 Indexes. Nvidia will move to third place, pushing Alphabet to fourth position. The fifth-largest company, Amazon.com, will replace Berkshire Hathaway (now seventh), followed by Meta Platforms in the sixth place. Broadcom, a semiconductor company, will now rank ninth, marking the most significant jump among the largest 10 companies, from 24th in 2023. Eli Lilly will replace Exxon Mobil in the eighth position and Tesla will round out the list of the 10 largest companies (read: NVIDIA in Rush to Overtake Apple: ETFs Set to Gain Further).
“Magnificent Seven” (Microsoft, Apple, Nvidia, Alphabet, Amazon.com, Meta, Tesla) increased their combined total company market capitalization by 43.5% to $13.2 trillion from last year’s $9.2 trillion.
At this year’s reconstitution, three recent initial public offerings (IPOs) will be added to the Russell 1000 Index (one company each from Technology, Consumer Discretionary and Industrials), and 11 IPOs are being added to the Russell 2000 Index. Seven of the Russell 2000 IPO additions represent Health Care, with the remaining four representing Technology, Industrials, Real Estate and Energy industries.
Other Russell Indices Shake-Up
Health Care companies will replenish the Russell 2000 Index with seven of the 11 IPO additions. Some notable new additions to the Russell 3000 will be Ocugen, Eledon Pharmaceuticals, NN Inc. and Bitcoin Depot. Computer maker Dell Technologies will enter the Russell 3000 for the first time.
While 30 companies will transition from the Russell 1000 Index to the smaller-cap Russell 2000 Index, 116 companies are set to graduate from the Russell Microcap Index, which includes smaller public companies.
ETFs in the Spotlight
iShares Russell 1000 ETF (IWB - Free Report)
iShares Russell 1000 ETF offers exposure to large U.S. companies by tracking the Russell 1000 Index. It has amassed $35.5 billion in its asset base and trades in an average daily volume of 611,000 shares. It charges 15 bps in annual fees and has a Zacks ETF Rank #3 (Hold).
Vanguard Russell 1000 ETF (VONE - Free Report)
Vanguard Russell 1000 ETF also tracks the performance of the Russell 1000 Index, charging 8 bps in annual fees. It has AUM of $4.7 billion and trades in average daily volume of 56,000 shares. VONE has a Zacks ETF Rank #3 (read: 5 ETFs Leading the Small-Cap Rally).
iShares Russell 2000 ETF (IWM - Free Report)
iShares Russell 2000 ETF is the largest and most popular ETF in the small-cap space, with an AUM of $58 billion and an average daily volume of 27 million shares. It charges 19 bps in annual fees and has a Zacks ETF Rank #2 (Buy).
Vanguard Russell 2000 ETF (VTWO - Free Report)
Vanguard Russell 2000 ETF tracks the Russell 2000 Index, charging 10 bps in annual fees. It has accumulated $9 billion in its asset base and trades in an average daily volume of 1.1 million shares. The product has a Zacks ETF Rank #3.
iShares Russell 3000 ETF (IWV - Free Report)
iShares Russell 3000 ETF tracks the Russell 3000 Index, charging 20 bps in annual fees. It has amassed $13.7 billion in its asset base and trades in 112,000 shares a day on average. IWV has a Zacks ETF Rank #2.