What Does The Russell Reconstitution Mean For You?

The Russell’s mid-year reconstitution is coming soon, and Citi Research released a report this week with their projected changes for the Russell indices, as well as what investors can expect from the changes. Here’s a summary of what Citi had to say.

Size

Citi projects that the high end of the Russell 2000 (R2000) RUT 0.78% will move from about $12.3 billion down to $4.3 billion, and the high end of the Mid-Cap Index (Russell Midcap) (INDEX: RMCC) will drop from $38 billion to $29 billion.

Citi is projecting that the R2000 will lose about 28 members to the Mid-Cap Index, including stocks such as JetBlue Airways Corporation JBLU 0.54%, Office Depot Inc ODP 0.32% and bluebird bio Inc BLUE 2.51%.

The Mid-Cap Index is also expected to lose 15 stocks to the Russell Top 200 (INDEX: RT200), including Netflix, Inc. NFLX 1.24%, Kroger Co KR 1.65% and Tesla Motors Inc TSLA 1.31%.

Falling Stars

Citi is also projecting…

Read the rest of this article (and all my other articles) for free on Benzinga by clicking here

Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common SenseI don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!