GME Russell 1000 Rebalance Day and T+21 and T+35: One Of The Highest Volume Days Of The Year. Every time any of the indices add or delete a stock, the funds must also buy or sell the stock.
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| Author       | Source       | 
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|  [u/vierzehnter](https://www.reddit.com/user/vierzehnter/) | [Reddit](https://www.reddit.com/r/Superstonk/comments/nxjvpg/gme_russell_1000_rebalance_day_and_t21_and_t35/) | 

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[Education 👨‍🏫 | Data 🔢](https://www.reddit.com/r/Superstonk/search?q=flair_name%3A%22Education%20%F0%9F%91%A8%E2%80%8D%F0%9F%8F%AB%20%7C%20Data%20%F0%9F%94%A2%22&restrict_sr=1)

*Edit 1: Coincidence or not, CNBC wants us to sell our shares in 2 weeks, a few days before rebalancing day:* [*If you're thinking of riding the next meme stock mania, be sure to sell in about 2 weeks*](https://www.cnbc.com/2021/06/09/if-youre-thinking-of-riding-the-next-meme-stock-mania-be-sure-to-sell-in-about-2-weeks.html)

~~*Edit 2: As far as I remember, a T+21 cycle finishes on June 24th right? Can somebody help me there?*~~

*Edit 3: Added information*

*Edit 4:* *T+21 falls on June 24. T+35 falls on June 28. Thanks to* [r/Throcked](https://www.reddit.com/r/Throcked/)

EDIT 5: I just learned that you can not change the title. ~~and T+21 and T+35~~

*Edit 6: This is my first time I put so much time in a post for this community. One thing I learned from this one is that I should only write about things that I can source, not things that I merely remember.* *I am very sorry for the confusion!*

*Edit 7: Added Information on stocks being added to the Russell 1000*

*Edit 8:* [*720B reverse repo might be due at the same time*](https://www.reddit.com/r/Superstonk/comments/nxtguc/bottom_of_page_4_seems_to_say_theres_720b_worth/)*, it's all adding up to the same date. See Edit 1. What is going to happen?*

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*We have seen a lot of posts about the highly possible migration of GameStop into the Russell 1000 Index.*

*I did my small DD and I wanted to share a bit of information with you. Please don't expect too much from this post, it's my first DD if you can call it that; maybe rather a compilation of free information I found on the internet. Please tell me if I make mistakes or if I should add something!*

Introduction: What is the Russell 1000?

The term Russell 1000 Index refers to a stock market index that is used as a benchmark by investors. It is a subset of the larger Russell 3000 Index and represents the 1000 top companies by market capitalization in the United States.﻿ The Russell 1000 is owned and operated by FTSE Russell Group, which is based in the United Kingdom. The Russell 1000 is considered a bellwether index for large-cap investing. [[1]](https://www.investopedia.com/terms/r/russell_1000index.asp)

FTSE Russell provides float-adjusted, market capitalization--weighted indexes for a precise picture of the market. Today, $9.1 trillion in assets are benchmarked to the Russell US indexes. [[2]](https://research.ftserussell.com/products/downloads/Russell-US-indexes.pdf)

What does this have to do with GameStop?

*You may have heard: your favorite company GameStop will probably be moved into the Russell 1000. As of now, GameStop is in the Russell 2000 Index* [[3]](https://content.ftserussell.com/sites/default/files/ru2000_membershiplist_20200629.pdf)*.*

An existing Russell 2000 index member would have had to have a total market cap exceeding $7.3 billion in order to move into the Russell 1000 index, she said.

Going by that, [...] GameStop and its $11.97 billion market cap would make it. [[4]](https://finance.yahoo.com/news/tell-whether-amc-gamestop-russell-120012129.html)

*As this PDF* [[5]](https://content.ftserussell.com/sites/default/files/russell_microcap_deletions_-_2021.pdf) *shows, GameStop will be preliminary deleted from the Russell Microcap Index* [[6]](https://www.investopedia.com/terms/r/russell-microcap-index.asp).

2021 Index Reconstitution

Each year in May and June, the Russell Indexes release an updated list [[7]](https://www.ftserussell.com/resources/russell-reconstitution) of the constituents for their various indexes, notably the Russell 2000 and Russell 1000. Many exchange-traded funds and mutual funds are constructed to track these indexes, so official index rebalances force these funds to transact large volumes of stocks that move in or out of the index. This drives major changes in demand for stocks, generating significant volatility. [[8]](https://www.investopedia.com/articles/stock-analysis/062516/russell-rebalance-study-what-you-need-know.asp) [...]

*Check* [this](https://www.ftserussell.com/research-insights/russell-reconstitution/reconstitution-frequently-asked-questions) *page for frequently asked questions about the reconstruction.*

[![r/Superstonk - GME Russell 1000 Rebalance Day and T+21 and T+35: One Of The Highest Volume Days Of The Year. Every time any of the indices add or delete a stock, the funds must also buy or sell the stock.](https://preview.redd.it/dwvv41zzhn471.jpg?width=943&format=pjpg&auto=webp&s=59d53dc221aa6deb5808f69f671b531c99d84707)](https://preview.redd.it/dwvv41zzhn471.jpg?width=943&format=pjpg&auto=webp&s=59d53dc221aa6deb5808f69f671b531c99d84707)

2021 Reconstitution calendar for the Russell US Indexes [7]

*Today, June 11th, the mentioned preliminary lists was updated.*

What happens with stocks when they get added to indices?

*Zoom Video Communications, Inc. (ZM):* How Zoom zoomed into the Russell 1000 [[9]](https://www.ftserussell.com/blogs/how-zoom-zoomed-russell-1000)[...] After its IPO in April 2019, Zoom was evaluated for inclusion in Russell US Indexes during our June 2019 annual Russell reconstitution. The company met some Russell 1000 eligibility requirements---including a market cap in excess of $20 billion--- but fell short of the minimum voting rights hurdle. [...]

When Zoom eligibility was revisited in June 2020, it was a changed world in many respects---and very much a changed Zoom. The company's market cap had more than doubled to $46.8 billion, placing it well into Russell 1000 Index eligibility. [...]

Zoom's June 2020 addition to the Russell 1000 meant that it leapfrogged the Russell 2000, bypassing the initial step of many companies that later grow to become eligible for the Russell 1000. [...] And since its inclusion in the Russell 1000, Zoom's growth trajectory has continued. As shown below, as of September 30, 2020, the company's market cap has reached $132.5 billion and is now larger than the broader Russell 1000 dollar-weighted median market cap.

[![r/Superstonk - GME Russell 1000 Rebalance Day and T+21 and T+35: One Of The Highest Volume Days Of The Year. Every time any of the indices add or delete a stock, the funds must also buy or sell the stock.](https://preview.redd.it/ir0jmjofzs471.png?width=619&format=png&auto=webp&s=bfaa044b083da8503cd0594292397c465617ede2)](https://preview.redd.it/ir0jmjofzs471.png?width=619&format=png&auto=webp&s=bfaa044b083da8503cd0594292397c465617ede2)

[![r/Superstonk - GME Russell 1000 Rebalance Day and T+21 and T+35: One Of The Highest Volume Days Of The Year. Every time any of the indices add or delete a stock, the funds must also buy or sell the stock.](https://preview.redd.it/xtt848ej0t471.jpg?width=1920&format=pjpg&auto=webp&s=0e44c91c7546310c2b86f6e4c418f596607b1dff)](https://preview.redd.it/xtt848ej0t471.jpg?width=1920&format=pjpg&auto=webp&s=0e44c91c7546310c2b86f6e4c418f596607b1dff)

ZM prices before and after Reconstruction Day 07/29/20

[![r/Superstonk - GME Russell 1000 Rebalance Day and T+21 and T+35: One Of The Highest Volume Days Of The Year. Every time any of the indices add or delete a stock, the funds must also buy or sell the stock.](https://preview.redd.it/706rlrcykp471.jpg?width=855&format=pjpg&auto=webp&s=05b120a9d84af12b1cadc38c68802ad47b23c104)](https://preview.redd.it/706rlrcykp471.jpg?width=855&format=pjpg&auto=webp&s=05b120a9d84af12b1cadc38c68802ad47b23c104)

u/onlyhereforthelmaos research on companies that moved from R2k to R1k [10,11]

[![r/Superstonk - GME Russell 1000 Rebalance Day and T+21 and T+35: One Of The Highest Volume Days Of The Year. Every time any of the indices add or delete a stock, the funds must also buy or sell the stock.](https://preview.redd.it/i5kkcl2v8o471.jpg?width=1920&format=pjpg&auto=webp&s=b2de67bab2cba3ecd798bce50c27e2832b42a1ec)](https://preview.redd.it/i5kkcl2v8o471.jpg?width=1920&format=pjpg&auto=webp&s=b2de67bab2cba3ecd798bce50c27e2832b42a1ec)

TSLA price when it was added to S&P 500 12/21/20

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*(May 2020)* Tech stocks are expected to claim a greater presence in large-cap growth and value indexes, while industrials will shift to value from growth across market caps. [...]

For investors, the run-up to the rebalancing presents an opportunity to get ahead of some of the fund flows into and out of stocks that are joining or leaving the indexes.

[![r/Superstonk - GME Russell 1000 Rebalance Day and T+21 and T+35: One Of The Highest Volume Days Of The Year. Every time any of the indices add or delete a stock, the funds must also buy or sell the stock.](https://preview.redd.it/lvyz7qob2t471.jpg?width=633&format=pjpg&auto=webp&s=a873a825572c753196ba14447a18b9c5fe03deee)](https://preview.redd.it/lvyz7qob2t471.jpg?width=633&format=pjpg&auto=webp&s=a873a825572c753196ba14447a18b9c5fe03deee)

Buying and selling pressure of companies added/ leaving the Index

Private-equity firm KKR (ticker: KKR), for example, has cited Russell index inclusion in 2020 as a strategic priority. If added to the Russell 1000, KKR shares could see $644 million worth of buying pressure from exchange-traded funds and passive investors, equal to almost seven trading days of average volume for the stock, estimates Jefferies equity strategist Steven DeSanctis.

That is a lot of extra demand, but nowhere near what some thinly traded small-caps entering the Russell 2000 could see. DeSanctis points to ATCX, SWKH, and AUBN as among the shares that could have hundreds of times greater buying pressure than their average daily volumes.

Traders and hedge funds approach the rebalancing several months before with multiple strategies. The simplest is to buy the stocks that could get a boost from buying by ETFs and other passive investors, thanks to being reclassified into a more-popular index or having their relative weight increase. Ditto for shorting shares moving in the opposite direction. [[12]](https://www.barrons.com/articles/how-investors-can-play-the-rebalancing-of-the-russell-indexes-51590158778)

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*Nobody fully knows what will happen with GME. But as* [u/dlauer](https://www.reddit.com/u/dlauer/) *states* [here](https://www.reddit.com/r/Superstonk/comments/nvnslz/have_we_downplayed_the_importance_of_gme_entering/h15susc/?context=3)*, "the announcement is usually bullish because it adds buying pressure."*

[![r/Superstonk - GME Russell 1000 Rebalance Day and T+21 and T+35: One Of The Highest Volume Days Of The Year. Every time any of the indices add or delete a stock, the funds must also buy or sell the stock.](https://preview.redd.it/l7hu03ruin471.jpg?width=712&format=pjpg&auto=webp&s=3f3957884f89ee1679388ad9bfbb05d82792e08a)](https://preview.redd.it/l7hu03ruin471.jpg?width=712&format=pjpg&auto=webp&s=3f3957884f89ee1679388ad9bfbb05d82792e08a)

u/dlauer on Russell Rebalance Day

The annual reconstitution is one of the most significant drivers of short-term shifts in supply and demand for US equities, often leading to sizable price movements and volatility in individual company names or industry sectors. The final day of the reconstitution is typically one of the highest trading-volume days of the year in US equity markets.

[...] Similarly, it can create opportunities for investors seeking to benefit from the price moves which may be created from the reconstitution.

Countless ETFs, mutual funds, and managed asset programs mirror the composition of the Russell US Indexes in their investment funds, structured products, and index-based derivatives. With close to 70% of actively-managed institutional US equity assets currently benchmarked to a Russell Index, changes to index composition are apt to reverberate widely across the market. [[13]](https://www.cmegroup.com/education/articles-and-reports/the-russell-2000-index-reconstitution-2020.html)

Index funds make up a substantial percentage of the daily trading in the stock market. The S&P 500 ETF [...] trade billions of dollars each day, and every time any of the indices add or delete a stock, the funds must also buy or sell the stock. This can create some large moves for the stocks involved and can be an interesting source of volatility for traders.

At the close on June 25, 2021, the Russell indices will be rebalanced. [...] Thousands of stocks are impacted by what Russell calls its 'reconstitution.' Typically the day on which the reconstitution is down is one of the highest volume days of the year as a slew of huge blocks are transferred to various index funds. [[14]](https://realmoney.thestreet.com/investing/trading-the-russell-indices-rebalancing-15677149)

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[Here](https://www.etfchannel.com/type/most-shorted-etfs/) *you can see the most heavily shorted ETFs. 0.44% of IWM is GME; it's #6 with 43.48% Short Interest.* [*[15]*](https://www.etfchannel.com/type/most-shorted-etfs/) 

*As far as I understand, FTSE Russell shared on May 7th already that GME would move into the Russell 1000, but eversince then, we have seen posts of shorties heavily shorting some ETFs, yesterday and today.*

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*Shoutout to* [u/gooseears](https://www.reddit.com/u/gooseears/):

I think people are confusing what can force someone to cover their shorts. No one can directly make anyone cover their shorts directly. As long as they have their margin requirements covered, they can keep those positions open. In fact, the lenders want those positions open as long as possible to make dat interest off it.

BUT, when the ETFs rebalance and there is a load of volatility, this COULD cause GME to skyrocket in price due to the potential buying pressure, which COULD lead to margin calls which COULD lead to force liquidations to cover open short positions.

Notice the word "could" each time. This is a series of possible events that could lead to the squeeze. But don't think this is a certain date. As always, no dates. Anything could happen on that day. [[16]](https://www.reddit.com/r/Superstonk/comments/nx3abo/udlauer_knows_twothree_things_more_listen_to_what/h1cldzw/?context=3)

*TL;DR:*

*GME is very likely to move from the Russell 2000 to the Russell 1000 Index. Rebalancing is happening right now,* *the newly reconstituted indexes take effect after the market close on June 25, data will be published on Monday, June 28 when the Russell Reconstitution takes effect and the newly reconstituted indexes begin to operate.*

*One can not say what will happen with the GME price. Typically, index rebalancing day one of the highest volume days of the year.* W*hat we do know is that someone big is going to have to buy shares, and they will likely have some impact on the trading.*

~~*Fun fact: As you have read in the title, T+21 and T+35 both land on the same day, two days before the Russell indices rebalance.*~~

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[[1] https://www.investopedia.com/terms/r/russell_1000index.asp](https://www.investopedia.com/terms/r/russell_1000index.asp)

[[2] https://research.ftserussell.com/products/downloads/Russell-US-indexes.pdf](https://research.ftserussell.com/products/downloads/Russell-US-indexes.pdf)

[[3] https://content.ftserussell.com/sites/default/files/ru2000_membershiplist_20200629.pdf](https://content.ftserussell.com/sites/default/files/ru2000_membershiplist_20200629.pdf)

[[4] https://finance.yahoo.com/news/tell-whether-amc-gamestop-russell-120012129.html](https://finance.yahoo.com/news/tell-whether-amc-gamestop-russell-120012129.html)

[[5] https://content.ftserussell.com/sites/default/files/russell_microcap_deletions_-_2021.pdf](https://content.ftserussell.com/sites/default/files/russell_microcap_deletions_-_2021.pdf)

[[6] https://www.investopedia.com/terms/r/russell-microcap-index.asp](https://www.investopedia.com/terms/r/russell-microcap-index.asp)

[[7] https://www.ftserussell.com/resources/russell-reconstitution](https://www.ftserussell.com/resources/russell-reconstitution)

[[8] https://www.investopedia.com/articles/stock-analysis/062516/russell-rebalance-study-what-you-need-know.asp](https://www.investopedia.com/articles/stock-analysis/062516/russell-rebalance-study-what-you-need-know.asp)

[[9] https://www.ftserussell.com/blogs/how-zoom-zoomed-russell-1000](https://www.ftserussell.com/blogs/how-zoom-zoomed-russell-1000)

[[10] 'Gen Z' comes to Russell 1000 Index as Russell Rebalance nears (2019)](https://www.ftserussell.com/blogs/gen-z-comes-russell-1000-index-russell-rebalance-nears)

[[11] Stocks in the Russell 1000 Index](https://stockmarketmba.com/stocksintherussell1000.php)

[[12] ](https://www.barrons.com/articles/how-investors-can-play-the-rebalancing-of-the-russell-indexes-51590158778)<https://www.barrons.com/articles/how-investors-can-play-the-rebalancing-of-the-russell-indexes-51590158778>

[[13] https://www.cmegroup.com/education/articles-and-reports/the-russell-2000-index-reconstitution-2020.html](https://www.cmegroup.com/education/articles-and-reports/the-russell-2000-index-reconstitution-2020.html)

[[14] https://realmoney.thestreet.com/investing/trading-the-russell-indices-rebalancing-15677149](https://realmoney.thestreet.com/investing/trading-the-russell-indices-rebalancing-15677149)

[[15] https://www.etfchannel.com/type/most-shorted-etfs/](https://www.etfchannel.com/type/most-shorted-etfs/)

[[16] https://www.reddit.com/r/Superstonk/comments/nx3abo/udlauer_knows_twothree_things_more_listen_to_what/h1cldzw/?context=3](https://www.reddit.com/r/Superstonk/comments/nx3abo/udlauer_knows_twothree_things_more_listen_to_what/h1cldzw/?context=3)

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*HERE ARE SOME GREAT FOLLOW UP LINKS:*

[No matter what the price is, Gamestop should be upgraded to the Russell 1000 index on June 28th](https://www.reddit.com/r/Superstonk/comments/nwvyfg/no_matter_what_the_price_is_gamestop_should_be/?utm_source=share&utm_medium=ios_app&utm_name=iossmf)

[FTSE Russell begins 33rd annual Russell US Indexes Reconstitution](https://www.ftserussell.com/press/ftse-russell-begins-33rd-annual-russell-us-indexes-reconstitution)

[Russell 1000: Many poorly researched or purely speculative DD today about this. Here is the actual DATA and explanation of what impact the reconstitution is likely to have.](https://www.reddit.com/r/Superstonk/comments/nu91kx/russell_1000_many_poorly_researched_or_purely/)

[S&P 500 index inclusion (follow-up to my Russell 1000 DD yesterday): A potential CATALYST that is surprisingly *very* close...and which SHFs are powerless to prevent!](https://www.reddit.com/r/Superstonk/comments/nv3n42/sp_500_index_inclusion_followup_to_my_russell/?utm_source=share&utm_medium=ios_app&utm_name=iossmf)

[Ape Andy shares about GME into Russel 1000 from Russell 2000](https://www.youtube.com/watch?v=SCxZpkfW-P8)

- *He explains that end of June when there is a rebalancing that all shorted Russel 200 ETFs containing GME need to be closed, meaning there will be buying pressure. Andy also mentions that the Russel 2000 ETFs are shorted 500%.*

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*and... just putting this here:* [*https://www.gmefloor.com/*](https://www.gmefloor.com/)

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*I am not a financial advisor. I am just compiling some information I found on the internet. But please let me give you one advice: Buckle the f*ck up.*

*I love you.*
