Russell Indices Incorporate “Uber” Exciting IPOs

June 27, 2019 | Julianna Paterra, CFA, CAIA, Research Analyst

Russell Indices Incorporate Uber Exciting IPOs

It’s that time of year again! The end of June brings longer summer days and the annual Russell index reconstitution. The Russell 1000’s constituent rebalancing this month also brings the inclusion of a few recent high-profile IPOs, most notably Uber, Lyft, Spotify, and Beyond Meat. This means all investors holding a passive allocation to the Russell 1000 will soon hold shares in these companies.

The Russell’s methodology weights constituent allocations based on the free-float market cap, which only includes shares readily available to trade. We show here estimated weightings of these newly IPO’d constituents alongside some well-known peers of similar weights. Notably, Microsoft has overtaken Apple as the largest index constituent. Uber, while likely the largest IPO of 2019, is still dwarfed by these two behemoths and will ultimately not become a massive component of the index’s roughly 1,000 constituents. Similarly, while the top few constituents seem to hold outsized portions of the index, the index’s performance is not dictated solely by them as they are significantly outnumbered by over 900 names which contribute to performance.

Print PDF > Russell Indices Incorporate “Uber” Exciting IPOs

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

Julianna Paterra, CFA, CAIA
Research Analyst

Get to Know Julianna

Related Content

What to Expect from Global Equities? bar chart showing Earnings revisions negative across the globe as 2019 EPS estimates have been downgraded


What to Expect from Global Equities?

Through the first half of the year, most U.S. and non-U.S. equity indices have produced double-digit returns. For example, the…

The Evolution of Private Credit chart


The Evolution of Private Credit

With roughly $48B of U.S. private credit fundraising taking place in 2018 ­­— surpassing 2008 levels of $42B — private…


2019 Halftime Market Briefing

Live Webinar – Thursday, July 18, 2019 – 1:00-2:00 PM CT

Are Americans Swimming in Debt Again? bar chart


Are Americans Swimming in Debt Again?

The eleven-year recovery since the 2008 financial crisis has been good for most Americans, allowing many to…


Bank Loans Position Paper

Bank loans represent a key strategic asset class for most institutional investors’ fixed income portfolios. Some of the critical benefits…

When the Experts Are Wrong chart


When the Experts Are Wrong

Since the end of October, the yield on the 10-year Treasury fell more than 1% and as of writing stands…

More articles

Subscribe to Research Email Alerts

Research Email Alert Subscription

Research alerts keep you updated on our latest research publications. Simply enter your contact information, choose the research alerts you would like to receive and click Subscribe. Alerts will be sent as research is published.

We respect your privacy. We will never share or sell your information.

Thank You

We appreciate your interest in Marquette Associates.

If you have questions or need further information, please contact us directly and we will respond to your inquiry within 24 hours.

Contact Us >