FTSE Russell has released the preliminary list of additions and deletions for its 2025 Russell US Indexes Reconstitution, marking the beginning of an annual process that updates the composition of its widely followed benchmarks.
The reconstitution, based on April 30 market data, reflects shifts in company size, sector composition, and style classifications.
This year’s rebalancing takes effect after the market closes on Friday, June 27, with updated lists published weekly until then.
“The Russell indexes have continuously adapted to the evolving dynamic US economy, and it’s crucial to fully recalibrate the suite of Russell US Indexes, ensuring the indexes maintain an accurate representation of the market,” FTSE Russell CEO Fiona Bassett said in a statement.
Index composition adjustments
The total market capitalization of the Russell 3000 Index rose 10% year-over-year to $58.4 trillion, as of the April 30 rank day.
The threshold separating large- and small-cap companies remained stable at $4.6 billion.
The smallest company in the Russell 1000 had a market cap of $2.4 billion, while the smallest in the Russell 2000 decreased to $119.4 million.
This year, 36 companies are slated to join the Russell 1000 Index, with 19 moving up from the Russell 2000, dominated by companies in the industrials and health care sectors.
Companies entering the Russell 2000 include 133 from the Russell Microcap Index and 25 moving down from the Russell 1000.
Apple wins back top spot
Apple Inc (NASDAQ:AAPL, ETR:APC) has regained the top spot in the Russell 1000 and 3000 Indexes, surpassing Microsoft Corp (NASDAQ:MSFT) with a market cap of $3.2 trillion.
Tesla Inc (NASDAQ:TSLA) had the largest market cap increase among the top 10, moving from tenth to eighth place. Alphabet Inc (NASDAQ:GOOG) was the only top 10 company to see a decline in market cap.
The combined market capitalization of the “Magnificent Seven” companies (Microsoft, Apple, Nvidia Corp (NASDAQ:NVDA, ETR:NVD), Alphabet, Amazon.com Inc (NASDAQ:AMZN), Meta Platforms Inc (NASDAQ:META, ETR:FB2A, SWX:FB), and Tesla) rose 13.5% over the past year to reach $15 trillion, up from $13.2 trillion.
Meanwhile, the combined market cap of the largest 10 companies in the Russell 3000 rose 16.1% to $17.9 trillion, reflecting ongoing growth in the top end of the market.
Additionally, several companies previously classified entirely as growth, such as Amazon, Alphabet, and Meta, are now considered a blend of growth and value.
The Russell 1000 Growth Index returned 14.5% for the one-year period ending April 30, outperforming the Russell 1000 Value Index, which returned 8.6%. However, value outperformed growth in the first four months of 2025, indicating a possible change in trend.