Russell Indexes

Russell Reconstitution Annual rebalancing of Russell Indexes In order to maintain true representation of global equity markets and avoid capitalization and style slippage, Russell annually rebalances the entire Russell family of indexes. Annual reconstitution ensures that the Indexes reflect the changes in the market over time and accurately represent the true opportunity set of institutional managers. Russell's U.S. and global index families reconstitute simultaneously. 2010 Reconstitution The 2010 reconstitution of the Russell Indexes took place after the market closed on June 25, 2010. View additions and deletions to the Russell Indexes Updated June 28, 2010 Frequently asked questions Provisional and legacy returns Reconstitution schedule June 11 Preliminary additions and deletions to the Russell Global Index, Russell 3000® and Russell Microcap® published after 3:00 p.m. PST June 18 Updates to the list of additions and deletions June 25 Updates to the list of additions and deletions Reconstitution final after the close of the U.S. markets June 28 Final membership lists posted for the Russell Global, Russell 3000, Russell 1000®, Russell 2000®, Russell Midcap® and Russell Microcap Indexes For further details and a complete list of all methodology changes for 2010, please see the following documents or contact your client service associate. Russell U.S. Index Construction & Methodology (PDF) Russell Global Index Construction & Methodology (PDF) Importance of reconstitution Complete reconstitution is important for an index designed to represent market segments because market characteristics change over time. For example, a small-cap security can grow into the mid-cap range over time. Lack of complete reconstitution results in sector, capitalization, and style biases, all of which challenge the ability of an index to represent the market. Russell research has shown that increasing the frequency of Russell index reconstitution involves substantial increases in turnover costs to investors without offsetting benefits. Research concludes that the combination of annual reconstitution and the quarterly addition of eligible initial public offerings (IPOs) results in the most effective balance between index turnover and market representation. Featured articles Identifying "Country of Risk" in the Wave of Globalization The effect of banding on the Russell Indexes Market index change: Why it creates better measures Russell research: Price pressure at Russell index reconstitution (PDF) CORP-5998			Reconstitution resources Frequently asked questions News & commentary   Index membership See our 2010 index membership lists   Reconstitution updates Subscribe to the Index membership RSS feed Learn more about RSS Attention PR staff Is your company on the list of additions to a Russell Index? Download a sample news release. Download Russell 3000 Russell Microcap   -- Russell Global -- Chinese, simplified Chinese, traditional English French Hebrew Korean Spanish Turkish Printer friendly version of this page

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