The Russell 1000, the stock market index that tracks the top 1,000 stocks in the Russell 3000, is set to welcome 38 new members.
Among the companies moving out of the index, which tracks small-cap companies, are notable names such as Super Micro Computer (NASDAQ:), MicroStrategy, and Carvana. These additions reflect the shift of 28 companies from the small-cap scale to the large-cap index.
The technology sector is gaining a major boost with the addition of seven new companies, including Super Micro Computer and MicroStrategy.
The consumer products and energy sectors are also well represented, with five companies each joining the Russell 1000 index; Carvana is among the notable consumer discretionary companies, while Permian Resources is a major addition from the energy industry.
Other sectors such as industrials, healthcare, financials and consumer goods will see new representation with the remaining 11 companies.
This year's index reshaping also features the inclusion of three recent IPOs directly into the Russell 1000 index, which represents the technology, consumer discretionary, and industrials sectors.
Furthermore, 11 IPOs will be added to the Russell 2000 Index, with seven representing healthcare IPOs and the remainder spread across the technology, industrials, real estate and energy sectors.
30 companies will move from the Russell 1000 index to the smaller Russell 2000 index. Furthermore, 116 companies are set to graduate from the Russell Microcap Index, which includes smaller public companies.
The healthcare sector is leading this migration with 41 companies, followed by 15 companies from the financial sector, and 13 companies from both technology and industrials, highlighting the dynamic change in the composition of these influential indices.