That’s when FTSE Russell, a global index provider, kicks off the annual rebalancing process for its Russell U.S. indexes to ensure they accurately reflect the U.S. stock market. At the close on Friday, FTSE Russell will look at companies’ market value to determine their index membership eligibility under its 2022 “reconstitution,” according to a statement from the index provider in early March.
It all leads up to “a pretty dramatic change” on June 24, he said, when the reconstitution becomes final after the close of the U.S. stock market. “That’s why people start looking at it in May,” he said. Next month’s reconstitution “tends to be the biggest trading day of the year.” At the time, Jefferies pegged the new top end of the Russell 2500 XX:RUB at $17.7 billion, while estimating the largest name in the Russell Midcap index RMCC at $46.7 billion and the largest market cap in the Russell 1000 at about $2.6 trillion, the report shows. As part of the rebalancing, a style ranking will take place on May 31, according to Jefferies.