The Russell 1000 Index, a stock market index that tracks the 1,000 highest-ranked stocks in the Russell 3000 Index, is set to welcome 38 new members.
Among the companies leaving the index, which tracks smaller companies, are such well-known names as Super Micro Computer (NASDAQ:), MicroStrategy and Carvana. These additions reflect the transition of 28 companies from the small-cap spectrum to the large-cap index.
The technology sector is getting a major boost with seven new entrants including Super Micro Computer and MicroStrategy.
Consumer Discretionary and Energy sectors also were well represented, with five companies each in the Russell 1000; Carvana is among the prominent consumer law firms, and Permian Resources is a key player in the energy industry.
Other sectors such as industrials, healthcare, financials and consumer products will also see new representation among the remaining 11 companies.
The index’s recovery this year is also notable for the inclusion of three recent initial public offerings (IPOs) directly into the Russell 1000 index, representing the technology, consumer discretionary and industrials sectors.
Additionally, there will be 11 IPOs included in the Russell 2000 Index, with seven of them being healthcare IPOs and the rest spread across the technology, industrials, real estate and energy sectors.
30 companies will move from the Russell 1000 index to the smaller-cap Russell 2000 index. In addition, 116 companies are set to exit the Russell Microcap index, which includes smaller public companies.
The healthcare sector leads the migration with 41 companies, followed by 15 financials and 13 each from the technology and industrials sectors, highlighting the dynamic shift in the composition of these influential indices.