Russell Annual Reconstitution Scheduled for 6/22/12

The annual rebalancing of the Russell Indexes occurs during the last week of June.  This year the rebalancing will occur Friday, 6/22/12.  Thus, expect a large volume trading day next Friday, especially the last 20 minutes of trading. Once a year, Russell rebalances the indexes, moving some stocks to different indexes and eliminating others all together. Thus, funds must rebalance portfolio's eliminating some stocks and adding others.  This causes volatility for the markets adn the individual companies affected.

The reconstitution schedule began last Friday, 6/8/12, with the release of the preliminary addition and deletion lists. These are available at the web site below.  Tomorrow, Friday, 6/15/12, the lists will receive an update. Next Friday, 6/22/12, the list will be updated again as the rebalancing occurs and is finalized at the closing bell.  On 6/25/12, the final lists for the Russell Global, Russell 3000, Russell 2000, Russell 1000, Russell Midcap and Russell Microcap Indexes will be released.  Simply be aware of the rebalancing.  It is worthwhile to check the lists to see if any of your current stocks are shown. Companies that are receiving deletions from the indexes will be held less moving forward while the new additions will be in more demand by funds. Since the lists are now public, some funds are already adjusting positons but the big shift will occur Friday, 6/22/12.

More information including the list of additions and deletions are found at Russell Investments site;
http://www.russell.com/indexes/tools-resources/reconstitution.asp