How the Russell Indexes deliver an objective view of the ever-changing US equity market.
Russell Reconstitution, which occurs each year in June, is a top-to-bottom recalibration of the US equity market benchmarks and the membership of the entire Russell series of indexes. Reconstitution ensures that the indexes continue to accurately reflect the current state of equity markets and their market capitalization segments (large cap, mid cap, small cap, micro-cap), industry breakdowns and style structure. Given this continual evolution of the equity markets, the annual Russell Reconstitution:
- Ensures the Russell Indexes deliver an objective, accurate and transparent view of the equity opportunity set
- Establishes new thresholds for market capitalization size segments
- Adjusts where companies lie along the growth/value and defensive/dynamic style continuums
This highly anticipated event is closely tracked by professional money managers as they rebalance their portfolios with the goal of minimizing unwanted benchmark risk. Other close observers include brokerage houses, who, in the weeks leading up to Reconstitution, prepare for large blocks of trades by researching and reporting on the shifts that may occur, managing their inventory accordingly.
*** Please note that this webinar is addressed exclusively to professional investors in the US and/or jurisdictions where the mentioned investment products are approved for distribution. iShares ETFs are not sponsored, endorsed, issued, sold or promoted by FTSE Russell or LSEG. Nor do FTSE Russell or LSEG make any representation regarding the advisability of investing in any of the products. BlackRock is not affiliated to FTSE Russell or LSEG.**