Russell 2000 reconstitution: The results are in
There have been graduations and degradations, but the results are in. Russell Investments has reconstituted its small-cap Russell 2000 (NYSE:IWM) index.
In an effort to maintain true representation of global equity markets and ensure changes in the market are accurately reflected, Russell Investments annually rebalances all of its indices, including the Russell 2000.
Through all the shuffling, health care saw the most action on the upside. Fifty-three health-care companies were invited to join the small-cap index, while 30 companies were ousted according to the Associated Press.
Biomarin Pharmaceutical (Nasdaq:BMRN), Hologic Inc. (Nasdaq:HOLX), Illumina Inc. (Nasdaq:ILMN), Inverness Medical Innovations Inc. (AMEX:IMA) and Perrigo Co. (Nasdaq:PRGO) graduated to the Russell 1000, Russell’s large-cap index, from the Russell 2000. PDL BioPharma Inc. (Nasdaq:PDLI), on the other hand, slid to the Russell 2000 from the Russell 1000.
Following the health care sector, the technology and consumer discretionary sectors saw the most additions to the Russell, while consumer discretionary also saw the most deletions, unsurprising with the strapped consumer.
Thirty-seven technology companies were added, while 24 were jettisoned. Ansys Inc. (Nasdaq:ANSS), Equinix Inc. (Nasdaq:EQIX), Flir Systems Inc. (Nasdaq:FLIR), Nuance Communications Inc. (Nasdaq:NUAN), On Semiconductor Corp. (Nasdaq:ONNN) and SAIC Inc. (NYSE:SAI) climbed to the Russell 1000 from the Russell 2000. Acxiom Corp. (Nasdaq:ACXM), Riverbed Technology Inc. (Nasdaq:RVBD), Sanmina-SCI Corp. (Nasdaq:SANM) and Verifone Holdings Inc. (NYSE:PAY) moved down to the Russell 2000 from the Russell 1000.
Thirty-six consumer discretionary companies were added, while a whopping 50 were expunged. Central European Distribution Corp. (Nasdaq:CEDC), DeVry Inc. (NYSE:DV), FTI Consulting Inc. (NYSE:FTI), IHS Inc. (NYSE:IHS), LKQ Corp. (Nasdaq:LKQX), Priceline.com Inc. (Nasdaq:PCLN), Sohu.com Inc. (Nasdaq:SOHU) and Strayer Education Inc. (Nasdaq:STRA) graduated to the Russell 1000; while Cheesecake Factory Inc. (Nasdaq:CAKE), Chico's FAS Inc. (NYSE:CHS), Circuit City Stores Inc. (NYSE:CC), Coldwater Creek Inc. (Nasdaq:CWTR), Crocs Inc. (Nasdaq:CROX), Dillard's Inc. (NYSE:DDS), Harte Hanks Inc. (NYSE:HHS), Idearc Inc. (NYSE:IAR), McClatchy Co. (NYSE:MNI), NutriSystem Inc. (Nasdaq: NTRI), Pool Corp. (Nasdaq:POOL), R.H. Donnelley Corp. (NYSE:RHD) and Tractor Supply Co. (Nasdaq:TSCO) slipped to the small-cap index from the Russell 1000.
On the flipside, consumer staples and auto transportation were among the areas that saw the least action overall. Eight consumer staples were added to the Russell 2000, while two — Jones Soda Co. (Nasdaq:JSDA) and Tiens Biotech Group USA Inc. (AMEX:TBV) — were furloughed. Eleven auto and transportation stocks were injected, while eight were discarded.
After all the action that the energy sector has seen, in particular the integrated oil industry group, only one stock — independent oil and natural gas company Ram Energy Resources (Nasdaq:RAME) — was added within this space to the Russell 2000, while no stocks were removed in this industry group from the index.
Lastly, the Russell Group has a category deemed “other” in which two companies were added, while nine were subtracted.
The composition of the Russell 2000 index for the next year was finalized after Friday’s closing bell.
