$RUT - Annual Reconstitution

Russell rebalances its indices once each year in June, called "reconstitution". The reconstitution consists of updating the global list of investable stocks and assigning them to the appropriate indices. The Russell indexes do not immediately replace a company that merges with another firm or has its stock delisted. However, Russell adds Initial Public Offerings (IPOs) on a quarterly basis, capturing these stocks in a systematic way. Abnormal trading volumes caused by index fund managers re-balancing their portfolios has a history of significant market impact during the last few seconds before the New York Stock Exchange and NASDAQ closing prices are determined. The index rebalance is typically scheduled for the closing price on the last Friday in June.