Russell 1000 Index Shake-Up: Rivian Unseats Lucid, DraftKings Ousts Plug Power

The Russell 1000 Index has seen a shake-up in its constituents, with 37 new additions, including Rivian Automotive, DraftKings, and Roku, and 18 exclusions, including Nikola Corp, Plug Power, and Lucid Group. The reconstitution process saw a record 2.5 billion shares traded in 0.9 seconds, worth $102.4 billion. LPL Financial advises investors to stay patient and not make drastic changes to their portfolios.

The Russell 1000 Index has undergone a significant transformation, with 37 new additions and 18 exclusions in its latest reconstitution. The annual recalibration, which took place on July 1, 2025, saw a record-breaking 2.5 billion shares traded in just 0.9 seconds, totaling $102.4 billion in securities [1].

Among the notable additions to the Russell 1000 are Rivian Automotive, Inc. (RIVN), DraftKings, Inc. (DKNG), and Roku, Inc. (ROKU). These companies were promoted from the Russell 2000 Index or are new entrants to the Russell Index family. Core Scientific, Inc. (CORZ), previously a micro-cap stock outside the Russell 3000, also made a significant leap into the Russell 1000 [1].

Conversely, several well-known companies were excluded from the index. These include Nikola Corp. (NKLA), Plug Power, Inc. (PLUG), Beyond Meat, Inc. (BYND), and Lucid Group, Inc. (LCID). The exclusions reflect the evolving market landscape and the changing composition of the Russell 1000 [1].

Jeff Buchbinder, chief equity strategist at LPL Financial, advises investors to remain patient and avoid making drastic portfolio adjustments in response to these changes. He notes that while the reconstitution is a significant event, the best course of action may be to "stay the course" due to potential volatility in the coming weeks around tariff headlines, incoming inflation data, and the upcoming earnings season [1].

The Russell 1000 Index, comprising the largest 1,000 U.S. companies by market capitalization, plays a crucial role in the financial markets. Its composition influences the performance of various investment portfolios and ETFs. The annual reconstitution ensures that the index accurately reflects the current market landscape, thereby maintaining its integrity and relevance [1].

References:
[1] https://www.benzinga.com/markets/large-cap/25/07/46449975/rivian-unseats-lucid-draftkings-ousts-plug-power-in-russell-1000-shake-up