Apple and Russell Indexes

Credit Suisse: Because Apple has been aggressively buying back and retiring its stock, outstanding shares have dropped to less than 5.5 billion from 5.8 billion in late June 2015, when the Russell indexes were last recalibrated, according to Reuters data, according to Euro News. Apple weighting in the Russell 1000 <.RUI> will roughly fall to 2.52 percent from 2.77 percent, Credit Suisse said. When all is said and done, about $1.3 billion more will be sold in Apple Inc shares at the market close on Friday, when the reconstitution of the Russell indexes takes effect, according to an analysis by Credit Suisse. The decline is due to the combination of fewer shares outstanding and Apple smaller part of the index capitalisation. With the changes, fund managers who are pegged to the index, including exchange-traded funds, will have to sell the stock to match the new, lower weighting. The performance of a market-weighted index is more influenced by larger companies, like Apple. (news.financializer.com). As reported in the news.

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