Russell Reconstitution 2024
The stage is set for the annual rebalancing act
The annual FTSE Russell Rebalancing act for their main Russell 1000, 2000, 3000, and Microcap Indexes arrives every June, and the preliminary list of additions and deletions have been out for a few weeks now.
The first preliminary list appeared on May 24th and updates are posted each week, while the final list will appear on June 28th with the new composition to each index beginning to trade on July 1st.
You can check out the timeline on the FTSE Russell website here.
Here are the links for each of the most recent June 14th preliminary index PDF’s if you’re interested.
Each year, I build a little spreadsheet that basically takes the entire list of names from the Russell 3000 and Russell Microcap list of additions and deletions and puts them onto an Excel spreadsheet for easier management.
From there, I enlist the help of Excel’s reservoir of stack data which allows you to add things that are not in the FTSE Russell PDF, such as stock price, market cap, and a variety of other things related to each stock.
In case you’re like me and you enjoy browsing through these lists, I uploaded a copy of my spreadsheet to Dropbox should you so desire to take a look. You have to be at least a free subscriber to Dropbox to download it, so that’s up to you.
A note on this file should you download it: when you open it up in Excel, it will flash a warning and ask if you want to allow it access to outside data sources. As I mentioned, everything from the name of the company, the ticker, the share price, market cap, and even the company sector, are grabbed from Excel’s nifty online stock function, so if you choose to disable it, then it likely won’t work. In the Dropbox preview you will see a big #VALUE thing in the first column, which is Excel searching for the data source. Just an FYI.
If I was on top of things this year, I would have downloaded the first preliminary list, recorded the prices of the stock on that day, and tracked them over the next month until the list is finalized and the newly reconstituted list of participants start to trade.
Why bother? People do try to game these additions and deletions, and I have seen some amazingly outsized moves in both directions in the stocks as companies put out press releases touting their (typical) inclusion in one of the updated indexes. For some reason companies tend not to advertise if they’re getting the boot, but the some pretty big moves can happen to these names as well. So if you have a mind to play this game, have some care either way.
I tend to use it as an additional screening source for ideas, since most magical moves higher simply due to the inclusion in a broad-based index tend not to last.
Perhaps you can find some use in it as well.