Health care and technology are playing key roles in this year's Russell rebalancing.
With the index provider's annual reconstitution slated to take place at Friday's market close, FTSE Russell CEO Fiona Bassett noted that the indexes are adapting to trends in the broader market.
"It's certainly the story for the Russell 1000, which has been replenished by technology and the overall [market] direction, which speaks to the reengineering of the U.S. economy around technology," Bassett told CNBC's "ETF Edge" on Monday.
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As a result, once-small tech winners are moving up to Russell's large-cap index. Super Micro Computer and MicroStrategy are set to make their Russell 1000 debut starting Monday, according to this year's rebalancing prospectus.
The report also shows technology retaining its status as the largest sector, weighting at 34.6%.
Meanwhile, in small caps, Bassett called the Russell 2000 "much more of a health-care story."
Money Report
Forty-one of the 243 companies joining the small-cap index fall under health care.
The sector's weighting is expected to increase to 16.7% from 14.7% after the rebalancing, boosting it to become the second-biggest position behind industrials, according to FTSE.
So far in 2024, the Russell 1000 has gained 13.9%, while the Russell 2000 is higher by half a percent.
