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Largely behind the scenes process could be impacting your portfolio.
Right now the Russell indexes are being -- balance today.
And we are gonna see a sharp spike in volume as the changes are executed.
It's getting in the final minutes of trading today end -- the quarter at the weekend of the day hi gonna go on and on Iran -- Rosalind at the CEO Ivan has been a big day for you.
Very big day for us and our clients -- -- biggest headline for you coming out of this rebounds which we should be clear here market participants know they've got their trades ready to roll does that.
Is that all -- n.'s parent those secrets.
No secret survey has -- happening is that the index we publish the the the first list about two weeks ago -- everyone knows was coming in was going -- Then every -- and data is always a story right if you look back over the last year.
Big story this year is the cap rate between the large cap Russell 1000 and small cap Russell 2000 is an all time high.
-- this largely due to the run up over the last twelve months of small company stocks about 31% -- -- a -- this how much again.
But the the break out of -- -- the break -- -- the Russell 1000 large cap.
Stock let's have basket right about the break is that two point six billion -- -- kept in small cap.
Okay great yet so let's talk about kind of the changes that you sought but yeah I think -- I was fascinated to see kinda came out on top brand apple is still.
Number one of the biggest weight on the Russell 2003000.
-- Slowly senate and in the Russell 3000 apple still the biggest stock and that's this got a big story because.
When you see you then have performance of that stock over the last several months has gone down.
In value but still retains a top spot but not the way a smaller margin.
I think the really interesting thing about apple.
Instead of being a hundred seeing growth like it was in last year's index up 25% value characteristic now in apple sued twins have -- SI is -- -- Russell 1000 value and -- They're picking up Russell 3000 they're picking up in the Russell 2000 again as the small caps -- -- you get I think that's going back to what we saw last year was that shift.
And yeah all caps and and a lot of investors had no way to -- -- and -- chase the big names.
I'm gone for -- smaller names and it released the spread completely changed yeah.
Absolutely so viewer if you make an embed on small company Sox over the last twelve months.
There's big pay -- 31% now appreciation Russell 2000.
Know what that's about what this is so important and I know that this is very inside baseball but yeah so important because you've -- people that need that -- funds.
That they -- -- -- the benchmark yes this affects the best and that's how they reacted and also you've got traders investors got to buy and sell everything so quickly after that the spike in the law in.
That's exactly right and so this four point one trillion dollars -- benchmark two Russell indexes so that's a lot of money that follows the index was really important that we don't surprise investors so the chance Fannie driven methodology.
The fact that we publish our all of our rules about -- who's in who's out.
In fact we give the market and and investors.
Advance warning and -- the changes in the next that's already important.
From what I definitely get really quick is going to be visited -- financial services and technology stills and didn't -- the top sectors okay -- was the same last year as well.
Say not share and that's exactly right and so again you know that bad and that it that is the -- is that those those sectors continue to dominate.
In the US markets and -- One thing that happened on the -- was FaceBook -- -- and I think about the threat we face attracting young man.
And whereas FaceBook now as a dip in its weight towards the end so as its interest in the weight of these protection going up in indexing.
-- the the value of the stock is has been hit and the reason why is going up.
Is is the shares became -- -- will be sold into the market the float and that stock hit an able that the shares available for investors to buy.
Actually increase and so the way to FaceBook and issues.
Rebalance index is going out.
That's on CNN that the ill effects of an IPO that we have yeah.
Frankly have so many problems -- is that a public all right well thank you very much -- -- obviously B Russell indexes CEO and then we'll see you in any any -- -- before I would have.
Absolutely aren't having me again.
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