Although Russell does its big rebalance on a yearly basis, it also adds initial public offerings (IPOs) to its indexes on a quarterly basis. On September 28, the index provider will introduce 35 new stocks to the Russell 3000, with three of them set to enter the Russell 1000 and 32 destined for the Russell 2000.
The companies to be added to the Russell 3000 include 15 technology firms, six financial services companies, four consumer discretionary companies and three health care companies.
Of the three companies being added to the Russell 1000, MF Global is a futures and options brokerage firm that was recently spun off from Man Financial Group; Genpact is a business process management company; and VMware is a technology company that provides virtualization products.
The Russell Microcap Index, which includes the 1,000 smallest members of the Russell 2000 Index plus the next 1,000 smallest companies in the Russell universe, will have 28 companies added. Of those companies, 19 are to be included in the Russell 2000 as well.
The new additions will not replace existing Russell components but are simply added to the index. The standard component numbers for the various indexes are reinstated during the annual rebalancing in June.
You can find the component lists for the additions to the Russell indexes here.