Investors are bracing for what could shape up to be a very volatile trading session as the Russell 2000 and 1000 indexes get scrambled on Friday.
An estimated $3.8 trillion in assets track the Russell indices; 43 names will head from the Russell 1000 into the Russell 2000; 31 companies will go the other way. Just within the 2000, there will be 186 additions and 107 deletions. There will also be 10 additions to the 1000. Between $1.5 billion and $1.8 billion are expected to flow into both the energy and tech sectors, while financials should see outflows of more than $2.6 billion.
John Eade, President of Argus Research, expects the Russell rebalancing to take on greater significance amid the rise of passive investing.
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