Index Insights: From the June 2023 Russell US Indexes Reconstitution

In this edition of Index Insights, we explore what we expect to happen during the June 2023 Russell US Indexes Reconstitution including:

  • Lower expected turnover in major Russell US Indexes.1 Estimated one-way turnover is expected to be lower for the Russell 1000®, Russell 2000®, and Russell 3000® Indexes compared with the June 2022 Russell US Indexes Reconstitution.
  • Notable expected industry weight changes in Russell 2000® Index.2 The Russell 2000® Index is expected to have weight increases in the Technology and Energy Industries and weight reductions in the Consumer Staples and Consumer Discretionary Industries.
  • Large expected industry shifts in Russell US Style Indexes.3 Russell US Growth Style Indexes are expected to see a large weight increase in the Technology Industry, while Russell US Value Style Indexes are expected to see an increase in the weight of the Energy Industry.

Index providers, like MSCI or FTSE Russell, are responsible for constructing and monitoring a wide variety of indexes.

During periodic reviews (or rebalances), index providers may make changes to their indexes. For example, a provider will remove securities that no longer meet the criteria for index inclusion as outlined in its methodology.

Unlike individual securities, indexes aren’t directly investable. Instead, investors use index funds, including index ETFs, which are designed to track the performance of designated indexes, less fees. Given the rise in usage of index funds, large amounts of assets now seek to track these indexes.4

That’s why it’s important for investors to monitor index rebalances. Updates to index holdings, like additions to, deletions from and weight changes within an index, may have a corresponding impact on iShares ETFs.5

For more information on these changes and their impact on the funds listed below, see the full report.


Samara Cohen

Samara Cohen

Managing Director, is the Chief Investment Officer of ETF and Index investments (EII) at BlackRock

Daniel Prince

Daniel Prince, CFA

U.S. Head of iShares product consulting and U.S. Head of iShares Core and Stylebox ETFs

Samantha Merwin, CFA


Alec Woodworth, CFA


Brian Goodwine, CFA