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A record 62 companies added to FTSE Russell 2000

By William Hoffman

13:59, 20 September 2021

Krispy Kreme donut boxes
Krispy Kreme was added to the FTSE Russell 2000 index – Photo: Shutterstock

The London Stock Exchange’s popular FTSE Russell 2000 index is adding a record 62 companies to its index, which could cause a slight price bump for names such as Krispy Kreme.  

The 62 companies all recently priced initial public offerings (IPOs) amid a rush of such deals over the last quarter and will be officially added to the index effective at Monday’s open.

Other companies being added include online payments company Flywire, cancer therapies development company Cyteir Therapeutics, outpatient mental health care company LifeStance Health and grill makers Traeger and Weber.

Risk-off market

Despite inclusion in the index, the companies are seeing share prices fall Monday morning amid a broader risk-off tone in the market.

Krispy Kreme and Traeger opened down by around 1% to 1.5%, which is in line with moves on the Dow, S&P 500 and Nasdaq indices. Yet, the companies are performing better than the overall Russell 2000 index, which is trading down by around 2.5% this morning.

Weber, on the other hand, saw its shares open nearly 4% down Monday morning at a price of around $14 a share, which is back to its original IPO price after popping 21% to around $17 per share in August.

Benchmark investors

Investment managers and institutional investors use the index as a benchmark for their investment strategies in the small-cap space, which means those investors will become forced buyers of these stocks.

Approximately $10.6trn in assets are benchmarked against Russell’s US indexes including the popular iShares Russell 2000 exchange traded fund, which boasts a 61% total return rate over the last 12 months ending 30 June.

Compared with large-cap stocks and ETFs, small-cap stocks are typically riskier and trade with more volatility, which means investors expect larger rewards for their risk. Indeed, the iShares Russell 2000 ETF delivered a negative 11% return in 2018 but bounced back with positive 25% and 19% total returns in 2019 and 2020, respectively.  

Russell criteria

Companies added to the Russell 2000 will remain a part of the index for at least a year representing just under 10% of all publicly traded US companies with a total market cap of $3.5trn.

The index is trading up nearly 15% year to date closing at 2,236.87 on Friday. Over the last 52 weeks the index peaked at 2,360 and hit lows of 1,432.

Here is a list of companies added to the Russell 2000 today

ABOS – ACUMEN PHARMACEUTICALS

ABSI – ABSCI

ADGI – ADAGIO THERAPEUTICS

AOMR – ANGEL OAK MORTGAGE

AVTE – AEROVATE THERAPEUTICS

BASE – COUCHBASE

BHG – BRIGHT HEALTH GROUP

BLFY – BLUE FOUNDRY BANCORP

CNVY – CONVEY HOLDING PARENT

COOK – TRAEGER

CRBU – CARIBOU BIOSCIENCES

CTKB – CYTEK BIOSCIENCES

CURV – TORRID HOLDINGS

CVRX – CVRX

CYT – CYTEIR THERAPEUTICS

DAWN – DAY ONE BIOPHARMACEUTICA

DIBS – 1STDIBS.COM

DNAY – CODEX DNA

DNUT – KRISPY KREME

ELYM – ELIEM THERAPEUTICS

ERAS – ERASCA

EVCM – EVERCOMMERCE

EWCZ – EUROPEAN WAX CENTER

FA – FIRST ADVANTAGE CORPORAT

FLYW – FLYWIRE

FXLV – F45 TRAINING HOLDINGS

HK50

19,278.50 Price
-0.530% 1D Chg, %
Long position overnight fee -0.0228%
Short position overnight fee 0.0009%
Overnight fee time 21:00 (UTC)
Spread 30.5

DE40

15,938.00 Price
-0.620% 1D Chg, %
Long position overnight fee -0.0200%
Short position overnight fee -0.0022%
Overnight fee time 21:00 (UTC)
Spread 1.5

US100

14,524.90 Price
-0.330% 1D Chg, %
Long position overnight fee -0.0255%
Short position overnight fee 0.0032%
Overnight fee time 21:00 (UTC)
Spread 1.8

US30

33,529.00 Price
-0.130% 1D Chg, %
Long position overnight fee -0.0255%
Short position overnight fee 0.0032%
Overnight fee time 21:00 (UTC)
Spread 2

GLUE – MONTE ROSA THERAPEUTICS

GRPH – GRAPHITE BIO

IAS – INTEGRAL AD SCIENCE HOLD

ICVX – ICOSAVAX

IMGO – IMAGO BIOSCIENCES

IMRX – IMMUNEERING

INST – INSTRUCTURE HOLDINGS

INTA – INTAPP

IPSC – CENTURY THERAPEUTICS

JANX – JANUX THERAPEUTICS INC

KLTR – KALTURA

LAW – CS DISCO

LFST – LIFESTANCE HEALTH GROUP

LYEL – LYELL IMMUNOPHARMA

MLNK – MERIDIANLINK

MXCT – MAXCYTE

NUVL – NUVALENT

OB – OUTBRAIN

OMGA – OMEGA THERAPEUTICS

OMIC – SINGULAR GENOMICS SYSTEM

PECO – PHILLIPS EDISON & COMPAN

PWSC – POWERSCHOOL HOLDINGS

RLYB – RALLYBIO

RPID – RAPID MICRO BIOSYSTEMS

RXST – RXSIGHT

SERA – SERA PROGNOSTICS

SGHT – SIGHT SCIENCES

SNPO – SNAP ONE HOLDINGS

TKNO – ALPHA TEKNOVA

TNYA – TENAYA THERAPEUTICS

VERA – VERA THERAPEUTICS

VERV – VERVE THERAPEUTICS

WEBR – WEBER

XMTR – XOMETRY

XPOF – XPONENTIAL FITNESS

ZVIA – ZEVIA PBC

Read more: Weber reports 8.8m revenue – its fifth straight quarterly record

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