Russell 2000 Swells; Investors Await Update on AMC and GameStop

(Bloomberg) -- The total market capitalization of the Russell 2000 small-cap stock index jumped 84% over the past year amid the surging popularity of meme stocks and significant growth in the overall size of U.S.-listed companies.

The market value of the index is now $3.5 trillion, according to benchmark provider FTSE Russell. The smallest stock on the Russell 2000, Velocity Financial Inc., is worth $257 million, up 171% from the $95 million value of the smallest stock in May 2020.

FTSE Russell gave the update as it announced its preliminary list of companies that will join or leave its Russell 3000 Index and Russell Microcap Index, but didn’t provide an update on the much-awaited changes to the Russell 2000.

That index has been in the spotlight because of high-profile members AMC Entertainment Holdings Inc. and GameStop Corp., both of which have surged in value since the beginning of the year as social media-inspired retail traders have piled in. As a result, they’re likely to be removed from the small-cap index.

READ MORE: Meme Stock Rally Puts Spotlight on Russell 2000 Index Reshuffle

FTSE Russell’s website was down on Friday evening New York time, and it didn’t post its press release on Twitter until Saturday morning although it was dated June 4. A company representative wasn’t immediately available to respond to a request for comment on Saturday.

Further updates to the lists will be posted on its website postmarket on June 11 and 18, it said in the statement. The final changes will take effect June 28.

Total U.S. equity market capitalization rose 52% to $47.7 trillion as of May 2021, the firm said. Over the past year, value stocks outperformed growth with the Russell 2000 Value Index posting a total return of 79% versus 50% for the growth index.

©2021 Bloomberg L.P.