- Total US equity market capitalization of the broad market Russell 3000 Index up 20% to $53 trillion as of April 30th rank day.
- Market cap breakpoint separating small caps (Russell 2000 Index) and large caps (Russell 1000 Index) increased 9.5% to $4.6 billion.
- Microsoft retakes the top spot from Apple, which had been the largest company from 2021-2023.
- “Magnificent Seven” companies increased their total market capitalization 43.5% from $9.2 trillion to $13.2 trillion, and all seven companies remain 100% Growth.
- Technology, Consumer Discretionary and Energy industries lead companies moving up to the Russell 1000 Index, while Health Care companies replenish the Russell 2000 Index, including seven of the 11 Russell 2000 initial public offering (IPO) additions.
FTSE Russell, the leading global index provider, posted its preliminary lists of companies set to enter or leave the US broad market Russell 3000 Index and the Russell Microcap Index, marking the start of its 36th annual Russell US Indexes Reconstitution. This year’s changes will take place after US equity markets close on Friday, June 28. The lists of projected additions and deletions for the Russell US Indexes and other information regarding the annual rebalancing process is available on the FTSE Russell website.
Each June, the Russell US index family is recalibrated to accurately reflect the current state of the US equity market. During this highly anticipated market event, breakpoints between large, mid, small, and micro-cap are redefined to ensure market changes over the last year are captured. Companies are also re-evaluated to determine where they rank along the investment styles spectrum.
With approximately $10.5 trillion in investor assets benchmarked to or invested in products based on the Russell US Indexes, the Russell Reconstitution concludes with traditionally one of the highest trading volume days of the year on major US equity exchanges. In 2024, the Russell US Indexes also celebrate their 40th year providing accurate benchmarks that mirror the ever-changing US equity markets, which today is supported by a robust ecosystem of index-based products including futures and options.
Fiona Bassett, CEO at FTSE Russell, said:
“Russell indexes–now in their 40th year–continue to evolve to reflect the dynamic US economy. Annual rebalancing plays a vital role in establishing accurate benchmarks, ensuring they correctly mirror their designated market segments and remain unbiased in terms of size and style.”
Catherine Yoshimoto, Director of Product Management for the Russell US Indexes at FTSE Russell, said:
“Against the backdrop of the Magnificent Seven companies’ continued increase in market cap, large cap growth equities drove market performance over the one-year period ended April 30, 2024. Consistent with the industry’s outperformance over the 12 months ended April 30th, the Technology industry represents the highest number of companies graduating from the Russell 2000 Index to the Russell 1000 Index. In turn, new and growing Health Care companies replenish the Russell 2000 Index membership.”
US Total Market Size Lifted by the Rise of Mega Cap Growth and Technology Companies
Preliminary results for this year’s reconstitution reveal the US broad market increased in size, with the total market capitalization of the Russell 3000 Index up 20% from $44.2 trillion as of last year’s rebalance to $53.0 trillion based on this year’s rank day of April 30.
The market capitalization breakpoint, which separates companies in the US large cap Russell 1000 Index and companies in the US small cap Russell 2000 Index, increased 9.5% from $4.2 billion in 2023 to $4.6 billion this year, following a period where mega cap growth and technology stocks drove US equity market performance.
The smallest company in the Russell 1000 Index by market capitalization is Leggett & Platt with a total market cap of $2.4 billion (with banding applied), while the smallest company in the Russell 2000 Index is Richardson Electronics at $150.4 million, a decrease of 5.7% from 2023.
Largest 10 Companies Shuffle Positions as Microsoft Regains Top Spot
For the first time since 2020, Microsoft retakes the largest company position from Apple in the Russell 3000 and Russell 1000 Indexes. Nvidia moves into third place, pushing down Alphabet to the fourth largest company. The fifth largest, Amazon.com, replaces Berkshire Hathaway (now seventh), followed by Meta in sixth place. Broadcom, a semiconductor company ranked ninth, has the most significant jump among the largest 10 companies, from 24th in 2023.
The group of companies known as the “Magnificent Seven” (Microsoft, Apple, Nvidia, Alphabet, Amazon.com, Meta, Tesla) increased their combined total company market capitalization by 43.5% to $13.2 trillion from last year’s $9.2 trillion.
Although Apple lost 2% in company total market cap, the largest six companies exceeded $1 trillion in total company market cap (Magnificent Seven excluding Tesla), with four of the companies above $2 trillion, increasing their combined total market cap 44.8% to $12.6 trillion and broadening the gap between themselves and the rest of the companies in the Russell US Indexes. Tesla rounds out the list of 10 largest companies in tenth place.
New entrants to the list of 10 largest companies by market cap include Eli Lilly and Broadcom in eighth and ninth place, replacing Exxon Mobil and Visa, which are no longer among the largest 10 companies.
Largest 10 Companies in the Russell 3000 Index / Russell 1000 Index by Size (Total Company Market Capitalization)
| Company | 2024 Rank by size | 2024 Total Market Cap | 2023 Rank by size | 2023 Total Market Cap | Change from 2023 |
| Microsoft | 1 | $2,893.6B | 2 | $2,284.6B | 26.70% |
| Apple | 2 | $2,630.2B | 1 | $2,684.7B | -2.00% |
| Nvidia | 3 | $2,160.1B | 6 | $685.4B | 215.20% |
| Alphabet | 4 | $2,011.6B | 3 | $1,362.9B | 47.60% |
| Amazon.com | 5 | $1,820.5B | 4 | $1,082.0B | 68.30% |
| Meta | 6 | $1,091.1B | 7 | $615.9B | 77.20% |
| Berkshire Hathaway | 7 | $855.6B | 5 | $717.4B | 19.30% |
| Eli Lilly | 8 | $742.4B | 15 | $375.8B | 97.60% |
| Broadcom | 9 | $602.6B | 24 | $261.2B | 130.70% |
| Tesla | 10 | $584.5B | 8 | $520.8B | 12.20% |
Source: FTSE Russell as of April 30, 2024.
Technology Fuels Large Caps, Health Care Replenishes Small Caps
Based on the preliminary results, by the conclusion of this year’s reconstitution, 38 companies will be added to the Russell 1000 Index, 28 of which are graduating from the Russell 2000 Index.
Seven of the new Russell 1000 members are classified as Technology, including Super Micro Computer and MicroStrategy, and five companies each represent the Consumer Discretionary (including Carvana) and Energy (including Permian Resources) industries. The remaining 11 companies moving from small cap to large cap represent Industrials, Health Care, Financials and Consumer Staples industries.
At this year’s reconstitution, three recent initial public offerings (IPOs) will be added to the Russell 1000 Index (one company each from Technology, Consumer Discretionary and Industrials), and 11 IPOs are being added to the Russell 2000 Index. Seven of the Russell 2000 IPO additions represent Health Care, with the remaining four representing Technology, Industrials, Real Estate and Energy industries.
30 companies will migrate to the Russell 2000 Index from the Russell 1000 Index, and 116 companies are graduating from the Russell Microcap Index, including 41 companies from Health Care, 15 from Financials, and 13 each from Technology and Industrials.
Large Cap Styles: Growth Outperformed Value, Dynamic Outperformed Defensive
Large cap growth stocks continued to outperform value stocks in 2024, with the Russell 1000 Growth Index returning 31.8% in the year ended April 30, 2024, compared to 13.4% for the Russell 1000 Value Index. At 100% Growth, Super Micro Computer, which graduates from the Russell 2000 Index, is the largest addition by weight to the Russell 1000 Growth Index. Each of the Magnificent Seven companies also remain 100% Growth as of the 2024 Russell Reconstitution.
The Russell 1000 Style Indexes provide an objective measure of growth-oriented and value-oriented US large cap company performance by weighting index constituents based on their relative growth or value characteristics. Most companies are 100% growth or 100% value-oriented, but some contain a blend of both growth and value characteristics.
The Russell US Stability Indexes provide a Third Dimension of Style, with the Russell Defensive Index measuring the more stable portion of the market based on sensitivity to economic, credit and market cycles, while the Russell Dynamic Index measures the less stable portion; they provide the basis for the Russell High Efficiency Defensive Index (HEDI) Series, which provides turnover-controlled capture of Low Volatility and Quality variables. The Russell 1000 Dynamic Index outperformed the Russell 1000 Defensive Index in the dynamic market over the past year.
Today’s posting of the preliminary lists of additions and deletions to the Russell 3000 and Russell Microcap indexes is the first public step in the annual reconstitution process for the Russell US Indexes. Updates to the lists will be posted to the FTSE Russell website after US market close on May 31, June 7, June 14 and June 21. If changes to the publicly announced Russell 3000 additions occur during the query period, which closes June 7, a technical notice will be published on the FTSE Russell website. The 2024 Russell Reconstitution takes effect and the newly recalibrated indexes begin to operate after the US market close on Friday, June 28, from the open of US markets on Monday, July 1.
To complete this year’s Russell US Indexes Reconstitution, FTSE Russell uses primary exchange closing prices from NYSE and Nasdaq. NYSE-listed stocks utilize NYSE’s auction mechanism while Nasdaq-listed stocks utilize Nasdaq’s “Closing Cross” mechanism to execute shares for each stock at a single price on June 28.
Commemorating 40 years of the Russell US Indexes, FTSE Russell is excited to celebrate the close of this year’s Russell Reconstitution with Nasdaq officials at the June 28 closing bell ceremony.
Source: FTSE Russell
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