Technology and health care are playing major roles in this year’s Russell rebalancing, according to FTSE Russell CEO Fiona Bassett. The changes set to occur on Friday’s market close will see technology companies being replenished in the Russell 1000, reflecting the market’s overall direction towards technology. Small tech winners are moving up to the large-cap index, with Super Micro Computer and MicroStrategy set to make their Russell 1000 debut.
The Russell 2000, on the other hand, is shaping up to be a health care story. A significant number of companies joining the small-cap index are in the health care sector, with 41 out of 243 falling under health care. The sector’s weight is expected to increase to 16.7%, making it the second-largest position behind industrials after the rebalancing.
Year-to-date, the Russell 1000 has gained 13.9% while the Russell 2000 is up by half a percent. It is important to note that this content is based on information from FTSE Russell and CNBC and should be taken as general information for informational purposes only.
