FTSE Russell Announces Preliminary Lists for 2025 Annual Reconstitution; Inseego, Altice USA to Join Russell 3000 Index

FTSE Russell has released preliminary lists of companies set to join or leave the Russell 3000 Index in 2025. Inseego Corp. (INSG) and Altice USA (ATUS) will join the index, while Lightwave Logic (LWLG) will exit. Crexendo (CXDO), BK Technologies (BKTI), and Millicom (TIGO) are also listed to join. The changes will be effective after the annual reconstitution.

FTSE Russell has announced the preliminary lists of companies set to join or leave the Russell 3000 Index in 2025. The changes will be effective after the annual reconstitution scheduled for June 30, 2025. Key additions include Inseego Corp. (INSG) and Altice USA (ATUS), while Lightwave Logic (LWLG) is set to exit the index. Crexendo (CXDO), BK Technologies (BKTI), and Millicom (TIGO) are also slated to join the index [1].

The annual reconstitution of the Russell U.S. equity indices is a significant market event, with approximately $8.5 trillion benchmarked to these indices and roughly $2 trillion tracking them passively. The rebalance, known as the Russell Reconstitution, of the Russell 1000, 2000, and 3000 indices, will take place after the markets close on Friday, June 27, and become effective at the market open on Monday, June 30 [1].

The changes in the Russell 3000 Index reflect the ongoing shifts in the U.S. equity landscape. Technology stocks have led an impressive rebound in equities, recovering all of the steep losses from earlier in the year following shifts in trade policy. Small-cap stocks, however, have been lagging amid concerns over the economy, both in the U.S. and globally [1].

The Russell 3000 Index, which includes approximately 3,000 of the largest publicly traded companies in the United States, will see notable leadership changes. Apple will take its position as the largest stock, with Microsoft moving down to second. Nvidia remains firmly in third place while Amazon moves up to the fourth and Meta moves down to fifth [1].

The reconstitution process involves significant operational undertakings, with approximately 3000 names being turned over while trying to maintain the tracking error to the underlying benchmark. Investors can utilize Russell Index futures to efficiently implement rebalancing changes, avoid operational burden, and minimize tracking error [1].

The changes in the Russell 3000 Index will have implications for investors who hold funds or ETFs that track the index. The addition of Inseego Corp. and Altice USA, and the exit of Lightwave Logic, will require these investors to adjust their portfolios to reflect the new index composition. Similarly, the inclusion of Crexendo, BK Technologies, and Millicom will necessitate portfolio adjustments for those investors who track the index.

Investors should be aware of the potential for increased volatility and trading volume on the reconstitution day. Trading volumes across both E-mini Russell futures and the Micro E-mini Russell 2000 Index futures tend to be higher than the June daily average volume [1].

The FTSE Russell announcement is the latest in a series of significant market events that have shaped the U.S. equity landscape over the past 12 months. Larger-cap stocks have outperformed small caps, with growth stocks also outperforming value stocks during the first six months of the year [1].

The upcoming Russell 3000 Index changes highlight the dynamic nature of the U.S. equity market and the importance of staying informed about index changes for investors and financial professionals.

References:
[1] https://www.cmegroup.com/articles/2025/the-russell-reconstitution-2025-changes-at-the-top-as-tech-surges.html