• Homrich & Berg flagged Russell’s June 26 reconstitution as a near-term headwind for small caps, with added volatility likely into summer.
• Russell moves to semiannual reconstitution for the first time since 1989, with index changes effective June 29 and another reset in December.
• About 43 stocks are expected to graduate from the Russell 2000 to the Russell 1000; 31 sit in the Russell 2000 high-momentum basket.
• Historically, momentum and small-cap gains slow post-reconstitution: momentum averaged 1.9% in the next quarter versus 4.7% before; Russell 2000 was flat.
• Sector weights could shift, with the Russell 2000 set to lose 370 bps in tech and 470 bps in industrials, reweighting toward financials and health care.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Homrich & Berg Inc published the original content used to generate this news brief on June 26, 2026, and is solely responsible for the information contained therein.