Energy, consumer companies leap ahead in Russell US Indexes reconstitution
Energy is the "standout industry" in FTSE Russell's reconstitution of the annual Russell US Indexes, leading in terms of index performance and the number of companies moving from the Russell 2000 to Russell 1000.
Catherine Yoshimoto, FTSE Russell Director of Product Management for the Russell US Indexes, said: "In terms of industry performance over the 1-year period ended May 6, 2022, Consumer Staples, Utilities, and Real Estate also saw gains, albeit at much lower levels than Energy companies."
The Russell 1000 Index will see 45 new additions, of which 21 are from the Russell 2000 and six are from the energy industry, including Chesapeake Energy (CHK), Ovintiv, PDC Energy (PDCE) and Southwestern Energy (SWN). Another four of the 21 are consumer companies: Macy's (M), AMC Entertainment (AMC), Avis Budget Group (CAR) and BJâs Wholesale Club (BJ).
The top five companies in the Russell Indexes (Russell 3000 Index / Russell 1000 Index) changed for the first time since 2019. Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) managed to keep their positions at the top of the rankings, but Alphabet (NASDAQ:GOOGL) overtook Amazon (NASDAQ:AMZN) to the third rank and Tesla (NASDAQ:TSLA) moved past Meta (FB) to become the fifth-largest company.
The market cap of the top ten stayed largely the same, dropping just 0.9% to $10.8T. However, seven of the top ten saw an increase in market caps, with Tesla (TSLA) recording the largest increase of 38.46% to break into the top five.
Apple (AAPL) and Microsoft (MSFT) also saw their market cap rise 17.15% and 8.06% respectively, with Microsoft becoming the second company after Apple to have a market cap exceeding $2T.
Nvidia (NVDA) and UnitedHealth Group (UNH) debuted in the top ten, securing ranks nine and eight, respectively and displacing JPMorgan Chase (JPM) and Visa (V).

The 2022 reconstitution also includes six recent IPOs, four of which are from the healthcare industry. The preliminary results indicate that the US broad market shrunk, with the total market cap of the Russell 3000 down 5.9% amid "heightened market volatility and inflation fears."