Russell added 110 initial public offerings to the Russell Global Index in the third quarter, including 47 additions to the U.S. broad-market Russell 3000 Index. The new IPOs represent an increase of 46 over the first quarter of 2013, and an increase of 71 over the third quarter of 2012.
The 63 IPOs to be added to the Russell Global ex-U.S. Index are among 32 developed-market countries and 31 emerging market countries. Outside the U.S., China leads the way, with 10 IPO additions, followed by seven IPOs from Indonesia, six from Singapore and five each from Thailand and Canada.
The 47 IPOs added to the U.S. indexes this quarter include seven companies joining the large-cap Russell 1000 Index, 34 added to the small-cap Russell 2000 Index, and six joining the Russell Microcap Index.
Some Vanguard ETFs, including the Vanguard Russell 1000 ETF (VONE | A-94), the Vanguard Russell 2000 Value Index Fund (VTWV | B-82) and the Vanguard Russell 3000 Index Fund (VTHR | B-100) are all benchmarked to the indexes mentioned above.
“The quarterly IPO addition and annual reconstitution processes help maintain the integrity of Russell Indexes and ensure that they provide investors with accurate exposure to global markets,” said Russell Indexes Investment Strategist David Koenig, in a press release.
“For users of market indexes, the methodology governing the entrance of new companies into the index is a critical element in the quality of the index and one to be closely watched,” he added.