In the annual Russell index reconstitution, 237 companies will be added to the Russell 3000 index, led by 43 health care companies, 39 consumer discretionary companies and 36 technology companies, according to a news release from Russell.
"Turnover is always low in the broad-market Russell 3000, and it is expected to be similar to prior years at around 2.5% this year," Lori Richards, director of client service for Russell indexes, said in the release.
As a result of the reconstitution, which will take place June 30, the consumer discretionary and services sector is expected to increase to 14.9% of the Russell 300 from 13.7%, and the integrated oils sector is expected to decline to 4.8% from 5.2%. The financial services sector will remain the largest segment with a weighting of 22%.
According to a report from Goldman Sachs, the consumer discretionary sector is expected to receive the highest inflows because of the rebalancing, with an estimated $1.5 billion expected to move into companies in that sector. Integrated oil companies are expected to see the highest outflows, $800 million.
Goldman analysts expect few style reversals for large capitalization companies, but Procter & Gamble is likely to shift to 79% value from 100% growth, and Hewlett-Packard to 39% value from 100% growth.