After one of the most severe equity market selloffs in decades comes the June 26 “Russell Recon”, the once-a-year re-jig of FTSE Russells’s U.S. index range, tracked by over $9 trillion in assets.
Bank of America analysts predict big changes this year, with a greater skew towards mega-cap tech stocks. Those “moving up” may include names such as Zoom Slack and Crowdstrike, which have risen in price amid the shift to remote working.
In healthcare, BofA sees the “biggest style shift” in the mid-cap index, forecasting their share to be reweighted to 23% from 17%.
As funds adjust portfolios for the new weightings and components, reshuffle day tends to bring huge trading volumes, especially towards the end of the session. Last June saw 1.279 billion shares representing $42.59 billion change hands in just 1.14 seconds, according to the Nasdaq index.