The Russell 1000 Index is a stock market index of the 1,000 largest publicly traded companies in the United States. It is maintained by FTSE Russell Group. The index is weighted by market capitalization, and it is designed to be a benchmark for the overall U.S. stock market.
Russell 1000 Fact Sheet
- Ticker: RUI.
- Creation date: January 1, 1984.
- Composition: Large-cap. 1,000 largest publicly traded companies in the United States.
- Weighting: by market capitalization, so the largest stocks have the most influence on the index’s performance.
- Exposure: a variety of industries of the U.S. stock market.
Understanding the Russell 1000
The Russell 1000 Index is a popular benchmark for investors, and many mutual funds and ETFs exchange-traded funds are benchmarked against it.
The index is intended to be a benchmark for the overall health of the U.S. stock market.
Russell Index Reconstitution
Every year on the fourth Friday of June, Russell Investments reconstitutes its family of indexes, which includes the Russell 1000 Index. The process of reconstitution is designed to ensure that the indexes reflect the latest developments in the markets.
The reconstitution process begins with a preliminary list of candidates, which is based on data from the previous month. This preliminary list is then screened using additional criteria such as price and earnings momentum. In order to be included in the index, a company must meet certain requirements with respect to size and liquidity.
The final selection for the Russell 1000 Index is made by a committee of experts, who weigh all factors including company fundamentals and sector representation.