New York City, New York, June 11, 2020 (GLOBE NEWSWIRE) -- Co-Diagnostics (NASDAQ:CODX), announced earlier this week that the molecular diagnostics company is set to join the broad-market Russell 3000® Index and Russell 2000® Index at the conclusion of the Russell US Indexes and Russell Global Indexes annual reconstitution (effective after the U.S. market opens on June 29).
Membership in the US all-cap Russell 3000® Index means automatic inclusion in the large-cap Russell 1000® Index or small-cap Russell 2000® Index as well as the appropriate growth and value style indexes. Membership in the Russell Global Index means automatic inclusion in the appropriate large-cap, small-cap, all-cap indexes as well as the applicable style, sector and country indexes.
FTSE Russell determines membership for its Russell indexes by objective, market-capitalization rankings and style attributes. Russell US Indexes are part of FTSE Russell, a leading global index provider. FTSE Russell is wholly owned by London Stock Exchange Group.
What can we expect to happen to Co-Diagnostics shares after its inclusion in the Russell 3000®?
In a study from a few years ago, the authors found that Russell 2000® inclusion resulted in more trading in June, after end-of-May capitalizations are calculated, and that activity is consistent with investors rebalancing and tracking stocks. The just-added stocks have more trading volume than stocks that just missed addition to an index, while the just-deleted stocks have more trading volume than stocks that stayed in the index.
Inclusion in the Indexes is expected to increase the company’s exposure among investors, especially among institutions, provide additional liquidity for the stock and broaden the shareholder base. Russell US Indexes are widely used by investment managers and institutional investors as the basis for index funds and as benchmarks for active investment strategies. The company sees being named to the Russell Indexes is an acknowledgement of the progress Co-Diagnostics has made and the strong support from the investment community.
Approximately $9 trillion in assets under management (AUM) are benchmarked to or invested in products based on the Russell US Indexes, 18% of which is to the Russell 2000® alone, underlining the importance of reconstitution to the financial markets.
For more information on the Russell 3000® Index and the Russell US Indexes reconstitution, go to the "Russell Reconstitution" section on the FTSE Russell website.
Disclosure: Co-Diagnostics Inc is a client of BDA International.
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