The Russell Indexes have been metamorphosing and this means the index funds and exchange traded funds (ETFs) that track them will all adjust accordingly. The indexes are adjusted periodically to determine whether companies fit into their market cap parameters, Eleanore Laise for The Wall Street Journal says. Traditionally, it was easier for traders to visualize which companies would be added or deleted from the indexes. This year, Russell decided to keep any stocks that had only slightly moved out of range in the index. This way, turnover is reduced.

Columbia Sportswear (COLM) and Chipotle Mexican Grill (CMG) are staying in the Russell 2000 thanks to the rule. Graduates to the Russell 1000 are Big Lots (BIG) and Brocade Communications (BRCD) software company.

Below are ETFs that track the main Russell Indexes:

  • iShares Russell 1000 (IWB)
  • iShares Russell 2000 (IWM)
  • iShares Russell 3000 (IWV)

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.