2021 Russell Reconstitution saw rise in equity inflows with migration back to index products

Every year, all eyes are on the Russell US Indexes reconstitution process. It affects in $10.6 trillion in assets and often culminates in significant trading volumes. On June 25, 2021, a record 2.37 billion shares representing $80.8 billion were executed in the Nasdaq Closing Cross in 1.97 seconds, while 2.1 billion shares were traded on NYSEtheir fifth largest NYSE Closing Auction ever, with $105.1 billion in notional value traded. 

However, investors and other market participants are also keen to see the story that the rebalancing tells about the preceding year in US equity markets. While last year’s reconstitution narrative was largely about divergent markets where small caps got smaller and large caps got bigger, the 2021 story was about widespread market recovery across all size segments.

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