The annual reconstitution process for the Russell US Indexes is an important event, affecting all ETFs that track related indexes. This year, the newly reconstituted indexes took effect at the market close on June 24. To give an idea of the significance of this event, data from FTSE Russell shows that last year’s reconstitution necessitated $186 billion in trading between the NYSE and Nasdaq exchanges.
This annual reconstitution is necessary to reflect shifts in the US equity market. This year, investors face a significantly different market than they did last June so it is no surprise that there were some big changes within the indexes that will flow through to ETFs that track indices such as the Russell 1000.
To see the full article please visit Trackinsight.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
