2Q10 FUNdamental Facts
1. The Russell 3000 Index represents 98% of the invest able U.S. equity market. In 2009 the market capitalization of the index increased 26.4% to $13.4 trillion from $10.6 trillion.
2. This year Russell implemented an enhanced rule to determine country assignment for companies in their in dices that relies on three key indicators; incorporation, headquarters and trading. Companies that are incorporated, headquartered and traded in a single country become a member of that country.
3. If a company’s three key indicators do not align, the primary location of assets or revenue is used to determine eligibility. When location of assets or revenue is not reported, country assignment defaults to headquarter location.
4. As a result of the enhanced country assignment rule there were 42 companies removed from the Russell 3000 Index. 70% of the deletions shifted to the Russell China Index.
5. The financial services sector experienced the largest weight increase in the Russell 3000 Index (18.1% compared to 15.3% in 2009). The most notable addition to the sector was Berkshire Hathaway. The energy sector decreased by the widest margin (10% compared to 12% in 2009).
6. The Russell Global Index market capitalization increased to $40.8 trillion in 2010 compared to $34.9 trillion in 2009. The index has over 10,000 members and covers 61 countries.
7. This year excluding the U.S. a total of 956 companies were added to the Russell Global Ind ices, with Canada (110), Hong Kong (90) and India (89) experiencing the most new additions.
