In a major development, Amprius Technologies, Inc. (NYSE: AMPX), a renowned manufacturer of lithium-ion batteries, has announced its inclusion in the Russell 3000® Index. This news has sent the company’s shares soaring by over 9% today.
This news comes as part of the annual reconstitution of the Russell indexes. The changes are set to take effect on June 26, after the US market opens.
The Russell Indexes reconstitution process occurs annually, considering the 4,000 largest US stocks as of April 28. These stocks are ranked based on their total market capitalization. Amprius Technologies’ inclusion in the US all-cap Russell 3000® Index grants it automatic membership in either the large-cap Russell 1000® Index or the small-cap Russell 2000® Index, as well as the appropriate growth and value style indexes. The membership remains active for one year.
The decision to include companies in the Russell Indexes is primarily based on objective criteria such as market capitalization rankings and style attributes. FTSE Russell, a renowned global index provider, determines the membership for its Russell indexes.
The Russell indexes hold immense significance for investment managers and institutional investors. These indexes serve as benchmarks for active investment strategies and are frequently used for index funds. The Russell Indexes are trusted and widely recognized in the financial industry. Approximately $12.1 trillion in assets are benchmarked against Russell’s US indexes.