The Russell rebalancing, which is set to occur at Friday’s market close, will see health care and technology play crucial roles in the annual reconstitution. According to FTSE Russell CEO Fiona Bassett, the indexes will adapt to broader market trends, with technology remaining the largest sector in the Russell 1000 representing 34.6% of the total weight.
The replenishment of the Russell 1000 by technology has led to small tech winners moving up to the large-cap index, with companies like Super Micro Computer and MicroStrategy set to debut in the Russell 1000. In contrast, the Russell 2000 is characterized as a “health-care story” by Bassett, with 41 out of 243 new companies joining the small-cap index falling under the health care sector.
Following the rebalancing, the health care sector’s weight is expected to increase from 14.7% to 16.7%, making it the second-largest position behind industrials in the Russell 2000. In terms of performance, the Russell 1000 has gained an impressive 13.9% so far in 2024, while the Russell
