Healthcare and technology have played key roles in Russell’s rebalancing this year.
The index provider’s annual restructuring is due to take place at the market close on Friday, and FTSE Russell CEO Fiona Bassett said the indexes adapt to broader market trends.
“This is certainly Russell 1000Technical and Overall [market] “This is a direction that signals a restructuring of the U.S. economy around technology,” Bassett said Monday on CNBC’s “ETF Edge.”
As a result, companies that were once winners among small and mid-cap tech stocks are now listing in Russell’s large-cap indexes, according to this year’s Russell 1000 index.Supermicro Computer and MicroStrategy are set to debut on the Russell 1000 starting Monday. Rebalancing Prospectus.
The report also shows that technology maintained its position as the largest sector, accounting for 34.6%.
Meanwhile, in the small-cap space, Bassett described the Russell 2000 as having “a pretty strong health care story.”
Of the 243 companies in the small-cap index, 41 are health care companies.
According to FTSE, after the rebalancing, the sector’s weighting is expected to increase from 14.7% to 16.7%, making it the second largest sector after industrials.
So far in 2024, the Russell 1000 has gained 13.9%, while the Russell 2000 has gained 0.5%.
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