Jittery Markets Switch Winners and Losers in Russell Rebalance

When companies are added to indexes their stock prices usually rise, while the shares of the companies being kicked out typically fall. But that tradition has been turned on its head this month.

The annual rebalancing of FTSE Russell’s stock indexes takes affect after the bell Friday. And since the preliminary list of changes was announced on June 3, companies expected to be added to the Russell 1000 Index have lost 9.6%, while the deletions have lost 7.8% since, data compiled by Wells Fargo show. What’s more, additions to the Russell 2000 Index are down 11.1% since the announcement, compared with a 10.8% drop in the deletions.