[强]_老虎社区_美港股上老虎

MKan
2021-06-25

[强]

Gamestop In, AMC Out? Which Meme Stocks Will Be Impacted In Today's Russell Rebalance?<blockquote>游戏驿站进去，AMC出去？哪些模因股票将受到今天罗素再平衡的影响？</blockquote>

As we detailed previously, every June, the Russell Index rebalances by removing stocks that no longe

Gamestop In, AMC Out? Which Meme Stocks Will Be Impacted In Today's Russell Rebalance?<blockquote>游戏驿站进去，AMC出去？哪些模因股票将受到今天罗素再平衡的影响？</blockquote>

免责声明：上述内容仅代表发帖人个人观点，不构成本平台的任何投资建议。

推荐
最新

暂无评论

热议股票

{"i18n":{"language":"zh_CN"},"data":{"magic":2,"id":122220116,"tweetId":"122220116","gmtCreate":1624624014035,"gmtModify":1633950418187,"author":{"id":3564536003262308,"idStr":"3564536003262308","authorId":3564536003262308,"authorIdStr":"3564536003262308","name":"MKan","avatar":"https://static.tigerbbs.com/8828b116006ea5e07d0dda8797b26caa","vip":1,"userType":1,"introduction":"","boolIsFan":false,"boolIsHead":false,"crmLevel":12,"crmLevelSwitch":0,"individualDisplayBadges":[],"wearingBadges":[],"fanSize":0,"starInvestorFlag":false},"themes":[],"images":[],"coverImages":[],"title":"","extraTitle":"","html":"<html><head></head><body>[强]&nbsp;</body></html>","htmlText":"<html><head></head><body>[强]&nbsp;</body></html>","text":"[强]","highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"favoriteSize":0,"link":"https://laohu8.com/post/122220116","repostId":1179245434,"repostType":4,"repost":{"id":"1179245434","kind":"news","pubTimestamp":1624620760,"share":"https://www.laohunote.com/m/news/1179245434?lang=zh_CN&edition=full","pubTime":"2021-06-25 19:32","market":"us","language":"en","title":"Gamestop In, AMC Out? Which Meme Stocks Will Be Impacted In Today's Russell Rebalance?<blockquote>游戏驿站进去，AMC出去？哪些模因股票将受到今天罗素再平衡的影响？</blockquote>","url":"https://stock-news.laohu8.com/highlight/detail?id=1179245434","media":"zerohedge","summary":"As we detailed previously, every June, the Russell Index rebalances by removing stocks that no longe","content":"As we detailed previously, every June, the Russell Index rebalances by removing stocks that no longer meet their criteria (and incorporating recently improving names).<blockquote>正如我们之前详述的，每年六月，罗素指数都会通过删除不再符合其标准的股票（并纳入最近改善的股票）来重新平衡。</blockquote> As SpotGamma notes,many traders are starting to discuss the upcoming&nbsp;Russell Index rebalances, and the prospect of GME, AMC or other&nbsp;meme stocks being added to Russell 1000.<blockquote>正如SpotGamma所指出的，许多交易员开始讨论即将到来的罗素指数再平衡，以及 GME、AMC 或其他模因股票被纳入罗素 1000 指数的前景。</blockquote> Each year in June(today - Friday, June 25 this year)the FTSE Russell uses a set ofcriteria&nbsp;to determine which companies stock will be tracked by their benchmark indices.<blockquote>每年六月（今日至本年六月二十五日，星期五）富时罗素使用一套标准来确定哪些公司股票将被其基准指数跟踪。</blockquote> <img src=\"https://static.tigerbbs.com/8620fa3c3147d2c806038327c9efd6e4\" tg-width=\"947\" tg-height=\"659\" referrerpolicy=\"no-referrer\"><blockquote></blockquote> The new constituents will be announced after the bell today.<blockquote>新的选民将在今天敲钟后宣布。</blockquote> There are many ways investors can track these indices, such as through an ETF like&nbsp;IWM.<blockquote>投资者可以通过多种方式跟踪这些指数，例如通过 IWM 等 ETF。</blockquote> For massive assets like pension funds, they track by owning the individual stock components of the index.<blockquote>对于养老基金等大型资产，他们通过拥有指数的个股成分来跟踪。</blockquote> For example if the FTSE adds a 1% weighting of GameStop to the Russell 2000 Index, everyone that tracks the Russell 2000 must buy GME shares. To offset this addition, the Russell will reduce or remove other stock(s) that not longer meet their criteria.<blockquote>例如，如果富时指数在罗素 2000 指数中增加 1% 的游戏驿站权重，则每个追踪罗素 2000 指数的人都必须购买 GME 股票。为了抵消这一增加，罗素将减少或删除不再符合标准的其他库存。</blockquote> *Note: While this post discusses the Russell, the mechanics are the same for the S&amp;P Indices, too.<blockquote>*注意：虽然这篇文章讨论了罗素指数，但标准普尔指数的机制也是相同的。</blockquote> Analysts spend a lot of time trying to assess which stocks will be added or removed from the indices during this annual rebalance.<blockquote>分析师花费大量时间试图评估在年度再平衡期间哪些股票将被添加到指数中或从指数中删除。</blockquote> According to the FTSE Russell approximately&nbsp;$16 trillion assets track the Russell indices, so a lot of shares may have to be bought and sold so that all of these various funds conform to the appropriate benchmark.<blockquote>根据富时罗素的数据，大约有16万亿美元的资产跟踪罗素指数，因此可能需要买卖大量股票，以便所有这些不同的基金都符合适当的基准。</blockquote> With volume like that, one can see the value of knowing which stocks may be bought and sold&nbsp;before&nbsp;these large funds start their adjustment.<blockquote>有了这样的交易量，人们就可以看到了解哪些股票可以买卖的价值以前这些大基金开始调整。</blockquote> Knowing what stocks will be added or removed from indices, such as Russell, is a huge opportunity for traders<blockquote>了解哪些股票将从指数中添加或删除，例如罗素指数，对于交易者来说是一个巨大的机会</blockquote> TSLA was a prime example of how traders got ahead of these additions. In late November 2020, it was announced that&nbsp;TSLA would be added to the S&amp;P500 Index. As you can see on the chart below, the stock traded nearly 50% higher from the announcement date to the actual addition date.<blockquote>TSLA 是交易员如何领先于这些新增产品的一个典型例子。2020年11月下旬，宣布特斯拉将被纳入标准普尔500指数。正如您在下图中看到的，从公告日期到实际添加日期，该股的交易价格上涨了近 50%。</blockquote> <img src=\"https://static.tigerbbs.com/5b5a1b955bc2c60236833e65ad22e8c9\" tg-width=\"1280\" tg-height=\"638\" referrerpolicy=\"no-referrer\"><blockquote></blockquote> It’s important to mention that&nbsp;Tesla’s massive move into the index&nbsp;addition was quite an aberration, and traders should not expect ~50% moves for all index events.<blockquote>值得一提的是，特斯拉在指数中的大幅波动是一种相当反常的行为，交易者不应期望所有指数事件的波动幅度约为 50%。</blockquote> Mechanically, this is how an index rebalance trade may take place<blockquote>从机械上讲，这就是指数再平衡交易可能发生的方式</blockquote> Theoretical Example:<blockquote>理论示例：</blockquote> The Huge State Pension Fund (like: CALPERS,&nbsp;Texas Teachers, etc.) has $1 billion tracking the Russell 2000 Index. It’s announced that at the close of trading on June 25th, GME will be added to the Russell 2000.<blockquote>庞大的国家养老基金（如：CALPERS、德克萨斯教师等）。）有10亿美元跟踪罗素2000指数。据宣布，在 6 月 25 日收盘时，GME 将被纳入罗素 2000 指数。</blockquote> Huge State Pension Fund must therefore buy:<blockquote>因此，庞大的国家养老基金必须购买：</blockquote> <ul> <li>$1,000,000,000 (AUM) * 1.0% (index weighting) = $10,000,000 notional of GME stock</li> <li>$10,000,000/$225 (GME share price) =</li> <li>44,444 shares of GME stock</li> </ul> The index fund’s goal is to track the benchmark, and so they often work with bank dealers to try and buy these shares at the close of trading on June 25. Accordingly, bank dealers may start to build an inventory of shares in the days leading to the actual rebalance.<blockquote><ul><li>$1,000,000,000 (AUM) * 1.0%（指数加权）= $10,000,000 GME 股票名义价值</li><li>$10,000,000/$225（GME股价）=</li><li>44,444 股 GME 股票</li></ul>指数基金的目标是跟踪基准，因此他们经常与银行交易商合作，试图在 6 月 25 日收盘时买入这些股票。因此，银行交易商可能会在实际重新平衡前的日子里开始建立股票库存。</blockquote> The hypothetical example above shows how many shares would be bought with just&nbsp;one&nbsp;relatively small fund. You can imagine how the share count increases when you start to allocate trillions of dollars of capital to the index re-weighting.<blockquote>上面的假设示例显示了只需购买多少股一相对较小的基金。你可以想象，当你开始将数万亿美元的资本分配给指数重新加权时，股票数量会如何增加。</blockquote> So, who will make it?<blockquote>那么，谁会成功呢？</blockquote> To be included in the Russell 1,000 Index - a group of the largest US stocks -a company should be worth at least $5.2 billion by May 7, according to&nbsp;a chart from FTSE Russell, which creates the indexes.<blockquote>将被纳入罗素 1,000 指数（一组最大的美国股票）到 5 月 7 日，一家公司的价值应至少达到 52 亿美元根据创建这些指数的富时罗素的图表。</blockquote> <img src=\"https://static.tigerbbs.com/186872b8bba306cc607661671efeaed7\" tg-width=\"500\" tg-height=\"270\" referrerpolicy=\"no-referrer\">That puts retail-trader icon GameStop, which was worth about $12 billion as of the market close on May 7, in the running to be included.<blockquote>这使得零售商标志性公司游戏驿站（截至 5 月 7 日收盘时市值约为 120 亿美元）也有望被纳入其中。</blockquote> But AMC Entertainment might have just missed the cutoff.<blockquote>但AMC院线可能只是错过了截止日期。</blockquote> And finally, here's Goldman's best guess at the additions and deletions...<blockquote>最后，这是高盛对增加和删除的最佳猜测……</blockquote> <img src=\"https://static.tigerbbs.com/39e95e31f337f982f86d79aef5cc0e34\" tg-width=\"794\" tg-height=\"1197\" referrerpolicy=\"no-referrer\"><blockquote></blockquote> Potential Additions to the Russell 1000 Index<blockquote>罗素 1000 指数的潜在补充</blockquote> Investors can use the results of our analysis toanticipate potential price moves and buying/selling pressure for stocks being added to and deleted fromthe widely-followed large-cap and small-cap benchmark indices.<blockquote>投资者可以利用我们的分析结果预测被添加和删除的股票的潜在价格变动和买入/卖出压力广受关注的大盘股和小盘股基准指数。</blockquote>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Gamestop In, AMC Out? Which Meme Stocks Will Be Impacted In Today's Russell Rebalance?<blockquote>游戏驿站进去，AMC出去？哪些模因股票将受到今天罗素再平衡的影响？</blockquote></title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 12.5px; color: #7E829C; margin: 0;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGamestop In, AMC Out? Which Meme Stocks Will Be Impacted In Today's Russell Rebalance?<blockquote>游戏驿站进去，AMC出去？哪些模因股票将受到今天罗素再平衡的影响？</blockquote>\n</h2>\n<h4 class=\"meta\">\n\nzerohedge2021-06-25 19:32\n\n</h4>\n</header>\n<article>\nAs we detailed previously, every June, the Russell Index rebalances by removing stocks that no longer meet their criteria (and incorporating recently improving names).<blockquote>正如我们之前详述的，每年六月，罗素指数都会通过删除不再符合其标准的股票（并纳入最近改善的股票）来重新平衡。</blockquote> As SpotGamma notes,many traders are starting to discuss the upcoming&nbsp;Russell Index rebalances, and the prospect of GME, AMC or other&nbsp;meme stocks being added to Russell 1000.<blockquote>正如SpotGamma所指出的，许多交易员开始讨论即将到来的罗素指数再平衡，以及 GME、AMC 或其他模因股票被纳入罗素 1000 指数的前景。</blockquote> Each year in June(today - Friday, June 25 this year)the FTSE Russell uses a set ofcriteria&nbsp;to determine which companies stock will be tracked by their benchmark indices.<blockquote>每年六月（今日至本年六月二十五日，星期五）富时罗素使用一套标准来确定哪些公司股票将被其基准指数跟踪。</blockquote> <img src=\"https://static.tigerbbs.com/8620fa3c3147d2c806038327c9efd6e4\" tg-width=\"947\" tg-height=\"659\" referrerpolicy=\"no-referrer\"><blockquote></blockquote> The new constituents will be announced after the bell today.<blockquote>新的选民将在今天敲钟后宣布。</blockquote> There are many ways investors can track these indices, such as through an ETF like&nbsp;IWM.<blockquote>投资者可以通过多种方式跟踪这些指数，例如通过 IWM 等 ETF。</blockquote> For massive assets like pension funds, they track by owning the individual stock components of the index.<blockquote>对于养老基金等大型资产，他们通过拥有指数的个股成分来跟踪。</blockquote> For example if the FTSE adds a 1% weighting of GameStop to the Russell 2000 Index, everyone that tracks the Russell 2000 must buy GME shares. To offset this addition, the Russell will reduce or remove other stock(s) that not longer meet their criteria.<blockquote>例如，如果富时指数在罗素 2000 指数中增加 1% 的游戏驿站权重，则每个追踪罗素 2000 指数的人都必须购买 GME 股票。为了抵消这一增加，罗素将减少或删除不再符合标准的其他库存。</blockquote> *Note: While this post discusses the Russell, the mechanics are the same for the S&amp;P Indices, too.<blockquote>*注意：虽然这篇文章讨论了罗素指数，但标准普尔指数的机制也是相同的。</blockquote> Analysts spend a lot of time trying to assess which stocks will be added or removed from the indices during this annual rebalance.<blockquote>分析师花费大量时间试图评估在年度再平衡期间哪些股票将被添加到指数中或从指数中删除。</blockquote> According to the FTSE Russell approximately&nbsp;$16 trillion assets track the Russell indices, so a lot of shares may have to be bought and sold so that all of these various funds conform to the appropriate benchmark.<blockquote>根据富时罗素的数据，大约有16万亿美元的资产跟踪罗素指数，因此可能需要买卖大量股票，以便所有这些不同的基金都符合适当的基准。</blockquote> With volume like that, one can see the value of knowing which stocks may be bought and sold&nbsp;before&nbsp;these large funds start their adjustment.<blockquote>有了这样的交易量，人们就可以看到了解哪些股票可以买卖的价值以前这些大基金开始调整。</blockquote> Knowing what stocks will be added or removed from indices, such as Russell, is a huge opportunity for traders<blockquote>了解哪些股票将从指数中添加或删除，例如罗素指数，对于交易者来说是一个巨大的机会</blockquote> TSLA was a prime example of how traders got ahead of these additions. In late November 2020, it was announced that&nbsp;TSLA would be added to the S&amp;P500 Index. As you can see on the chart below, the stock traded nearly 50% higher from the announcement date to the actual addition date.<blockquote>TSLA 是交易员如何领先于这些新增产品的一个典型例子。2020年11月下旬，宣布特斯拉将被纳入标准普尔500指数。正如您在下图中看到的，从公告日期到实际添加日期，该股的交易价格上涨了近 50%。</blockquote> <img src=\"https://static.tigerbbs.com/5b5a1b955bc2c60236833e65ad22e8c9\" tg-width=\"1280\" tg-height=\"638\" referrerpolicy=\"no-referrer\"><blockquote></blockquote> It’s important to mention that&nbsp;Tesla’s massive move into the index&nbsp;addition was quite an aberration, and traders should not expect ~50% moves for all index events.<blockquote>值得一提的是，特斯拉在指数中的大幅波动是一种相当反常的行为，交易者不应期望所有指数事件的波动幅度约为 50%。</blockquote> Mechanically, this is how an index rebalance trade may take place<blockquote>从机械上讲，这就是指数再平衡交易可能发生的方式</blockquote> Theoretical Example:<blockquote>理论示例：</blockquote> The Huge State Pension Fund (like: CALPERS,&nbsp;Texas Teachers, etc.) has $1 billion tracking the Russell 2000 Index. It’s announced that at the close of trading on June 25th, GME will be added to the Russell 2000.<blockquote>庞大的国家养老基金（如：CALPERS、德克萨斯教师等）。）有10亿美元跟踪罗素2000指数。据宣布，在 6 月 25 日收盘时，GME 将被纳入罗素 2000 指数。</blockquote> Huge State Pension Fund must therefore buy:<blockquote>因此，庞大的国家养老基金必须购买：</blockquote> <ul> <li>$1,000,000,000 (AUM) * 1.0% (index weighting) = $10,000,000 notional of GME stock</li> <li>$10,000,000/$225 (GME share price) =</li> <li>44,444 shares of GME stock</li> </ul> The index fund’s goal is to track the benchmark, and so they often work with bank dealers to try and buy these shares at the close of trading on June 25. Accordingly, bank dealers may start to build an inventory of shares in the days leading to the actual rebalance.<blockquote><ul><li>$1,000,000,000 (AUM) * 1.0%（指数加权）= $10,000,000 GME 股票名义价值</li><li>$10,000,000/$225（GME股价）=</li><li>44,444 股 GME 股票</li></ul>指数基金的目标是跟踪基准，因此他们经常与银行交易商合作，试图在 6 月 25 日收盘时买入这些股票。因此，银行交易商可能会在实际重新平衡前的日子里开始建立股票库存。</blockquote> The hypothetical example above shows how many shares would be bought with just&nbsp;one&nbsp;relatively small fund. You can imagine how the share count increases when you start to allocate trillions of dollars of capital to the index re-weighting.<blockquote>上面的假设示例显示了只需购买多少股一相对较小的基金。你可以想象，当你开始将数万亿美元的资本分配给指数重新加权时，股票数量会如何增加。</blockquote> So, who will make it?<blockquote>那么，谁会成功呢？</blockquote> To be included in the Russell 1,000 Index - a group of the largest US stocks -a company should be worth at least $5.2 billion by May 7, according to&nbsp;a chart from FTSE Russell, which creates the indexes.<blockquote>将被纳入罗素 1,000 指数（一组最大的美国股票）到 5 月 7 日，一家公司的价值应至少达到 52 亿美元根据创建这些指数的富时罗素的图表。</blockquote> <img src=\"https://static.tigerbbs.com/186872b8bba306cc607661671efeaed7\" tg-width=\"500\" tg-height=\"270\" referrerpolicy=\"no-referrer\">That puts retail-trader icon GameStop, which was worth about $12 billion as of the market close on May 7, in the running to be included.<blockquote>这使得零售商标志性公司游戏驿站（截至 5 月 7 日收盘时市值约为 120 亿美元）也有望被纳入其中。</blockquote> But AMC Entertainment might have just missed the cutoff.<blockquote>但AMC院线可能只是错过了截止日期。</blockquote> And finally, here's Goldman's best guess at the additions and deletions...<blockquote>最后，这是高盛对增加和删除的最佳猜测……</blockquote> <img src=\"https://static.tigerbbs.com/39e95e31f337f982f86d79aef5cc0e34\" tg-width=\"794\" tg-height=\"1197\" referrerpolicy=\"no-referrer\"><blockquote></blockquote> Potential Additions to the Russell 1000 Index<blockquote>罗素 1000 指数的潜在补充</blockquote> Investors can use the results of our analysis toanticipate potential price moves and buying/selling pressure for stocks being added to and deleted fromthe widely-followed large-cap and small-cap benchmark indices.<blockquote>投资者可以利用我们的分析结果预测被添加和删除的股票的潜在价格变动和买入/卖出压力广受关注的大盘股和小盘股基准指数。</blockquote>\n<div class=\"bt-text\">\n\n\n 来源：<a href=\"https://www.zerohedge.com/markets/gamestop-amc-out-which-meme-stocks-will-be-impacted-todays-russell-rebalance?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29\">zerohedge</a>\n为提升您的阅读体验，我们对本页面进行了排版优化\n\n\n</div>\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"GME":"游戏驿站","AMC":"AMC院线"},"source_url":"https://www.zerohedge.com/markets/gamestop-amc-out-which-meme-stocks-will-be-impacted-todays-russell-rebalance?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1179245434","content_text":"As we detailed previously, every June, the Russell Index rebalances by removing stocks that no longer meet their criteria (and incorporating recently improving names).\nAs SpotGamma notes,many traders are starting to discuss the upcoming Russell Index rebalances, and the prospect of GME, AMC or other meme stocks being added to Russell 1000.\nEach year in June(today - Friday, June 25 this year)the FTSE Russell uses a set ofcriteria to determine which companies stock will be tracked by their benchmark indices.\n\nThe new constituents will be announced after the bell today.\nThere are many ways investors can track these indices, such as through an ETF like IWM.\nFor massive assets like pension funds, they track by owning the individual stock components of the index.\nFor example if the FTSE adds a 1% weighting of GameStop to the Russell 2000 Index, everyone that tracks the Russell 2000 must buy GME shares. To offset this addition, the Russell will reduce or remove other stock(s) that not longer meet their criteria.\n*Note: While this post discusses the Russell, the mechanics are the same for the S&P Indices, too.\nAnalysts spend a lot of time trying to assess which stocks will be added or removed from the indices during this annual rebalance.\nAccording to the FTSE Russell approximately $16 trillion assets track the Russell indices, so a lot of shares may have to be bought and sold so that all of these various funds conform to the appropriate benchmark.\nWith volume like that, one can see the value of knowing which stocks may be bought and sold before these large funds start their adjustment.\nKnowing what stocks will be added or removed from indices, such as Russell, is a huge opportunity for traders\nTSLA was a prime example of how traders got ahead of these additions. In late November 2020, it was announced that TSLA would be added to the S&P500 Index. As you can see on the chart below, the stock traded nearly 50% higher from the announcement date to the actual addition date.\n\nIt’s important to mention that Tesla’s massive move into the index addition was quite an aberration, and traders should not expect ~50% moves for all index events.\nMechanically, this is how an index rebalance trade may take place\nTheoretical Example:\nThe Huge State Pension Fund (like: CALPERS, Texas Teachers, etc.) has $1 billion tracking the Russell 2000 Index. It’s announced that at the close of trading on June 25th, GME will be added to the Russell 2000.\nHuge State Pension Fund must therefore buy:\n\n$1,000,000,000 (AUM) * 1.0% (index weighting) = $10,000,000 notional of GME stock\n$10,000,000/$225 (GME share price) =\n44,444 shares of GME stock\n\nThe index fund’s goal is to track the benchmark, and so they often work with bank dealers to try and buy these shares at the close of trading on June 25. Accordingly, bank dealers may start to build an inventory of shares in the days leading to the actual rebalance.\nThe hypothetical example above shows how many shares would be bought with just one relatively small fund. You can imagine how the share count increases when you start to allocate trillions of dollars of capital to the index re-weighting.\nSo, who will make it?\nTo be included in the Russell 1,000 Index - a group of the largest US stocks -a company should be worth at least $5.2 billion by May 7, according to a chart from FTSE Russell, which creates the indexes.\nThat puts retail-trader icon GameStop, which was worth about $12 billion as of the market close on May 7, in the running to be included.\nBut AMC Entertainment might have just missed the cutoff.\nAnd finally, here's Goldman's best guess at the additions and deletions...\n\nPotential Additions to the Russell 1000 Index\nInvestors can use the results of our analysis toanticipate potential price moves and buying/selling pressure for stocks being added to and deleted fromthe widely-followed large-cap and small-cap benchmark indices.","news_type":1,"symbols_score_info":{"GME":0.9,"AMC":0.9}},"isVote":1,"tweetType":1,"viewCount":3542,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"CN","currentLanguage":"CN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":4,"subscribersOnly":false,"subscribersOnlyAccessible":false,"xxTargetLangEnum":"ZH_CN"},"commentList":[],"hasMoreComment":false,"orderType":2}