Search
EN Down
Language
Hi, user_no_name
Live Chat

Expect a busy trading session thanks to the annual rebalancing of the FTSE Russell US indices. According to The Wall Street Journal, the first few seconds of trading on the day of the reconstitution last year saw around $100 billion in stock trades.

The US benchmarks have been updated to ensure the correct weighting, which means some stocks will be dropped and others added. These stocks can see a flurry of activity, with traders dumping the excluded stocks and snapping up the newest Russell constituents. However, fresh inclusions and exclusions are often easy to predict and telegraphed well in advance.

Fund managers will need to rebalance their portfolios – it is estimated that index funds tracking Russell benchmarks will need readjusting to the tune of $170 billion to keep themselves aligned with the reshuffled indices. $9 trillion is pegged to the US benchmarks in total.

The Russell recon has a bigger impact than other index reshuffles because it happens annually, compared to the quarterly rebalancing undertaken by other indices like the Dow, FTSE and DAX.

Rebalancing is a long process, and today marks the end. The conclusion of the Russell adjustments is often one of the highest volume trading days each year.

Latest news

Japanese yen falls to 155 vs dollar, weakest since 1990

Wednesday, 24 April 2024

Indices

Japanese yen hits 155 per dollar, weakest level since 1990

Tesla stock jumped in after-hours trading despite a 48% drop in Q1 profits

Wednesday, 24 April 2024

Indices

Tesla stock pops after hours despite 48% drop in Q1 profits

Australia interest rate cut hopes for 2024 end as Q1 inflation hotter-than-expected

Tuesday, 23 April 2024

Indices

Q1 inflation ends Australia interest rate cut hopes for 2024

Tesla shares jump after earnings call provides “clarity” on Model 2

Tuesday, 23 April 2024

Indices

Stocks rally, Tesla shares jump on mass market “clarity”

Live Chat