Investors trying to capitalize on the annual tweaks to the makeup of Russell stock indexes may produce a rush of transactions worth over $40 billion in the final moments of trading on Friday, June 26, when those changes are formalized.
The Wall Street summer ritual—often the biggest trading day of the year—occurs when Russell Investments updates the component companies in its Russell 1000, 2000, and 3000 indexes to keep up with the rise and fall of U.S. corporations. Unlike index operators like Standard and Poor's, which adds and removes components throughout the year, Russell reconstitutes its indexes just once.
On Friday, May 29, Russell will rank stocks based mostly on market capitalization for eligibility in its indexes. Investors have been attempting for months to predict which stocks could be affected.
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Over 40 stocks, including GoDaddy and Skechers USA, could be added to the Russell 1000 with a similar number removed, including Abercrombie & Fitch, according to Credit Suisse. Over 300 companies are expected to move into and out of the Russell 2000.