Expect a ‘Record-Breaking’ Russell Reconstitution, BofA Says
A pedestrian wearing a protective mask walks along Wall Street in front of the New York Stock Exchange in New York.
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This year’s Russell reconstitution -- when Russell indexes with trillions of dollars benchmarked to them adjust members -- is set to be more significant than usual with the coronavirus pandemic making sizable changes to equity markets, according to Bank of America Corp.
“Expect record-breaking changes post COVID-19,” strategists including James Yeo and Savita Subramanian wrote in a report Monday about the annual process. “The February-March sell-off -- and the subsequent rally -- driven by COVID-19 has significantly reshaped the equity markets, and turnover will likely be higher than usual.”