Desktop Metal, Inc (NYSE: DM), a company that offers 3D printing solutions, is in the Russell 2000 Index. The company, which came into being in 2015, is involved in additive manufacturing which is an essential tool for engineers and manufacturers. In another development, it is learned that IZEA Worldwide Inc (NASDAQ: IZEA) will join Russell Microcap® Index. The company provides data, services, and marketing technology to recognized brands across the globe. Concurrently, Ocean Power Technologies Inc (NYSEAMERICAN: OPTT) has made it to the Russell Microcap® Index. The company aims at bringing in a transformation courtesy of its implementable, innovative, and affordable ocean energy solutions.
“The addition of IZEA to the Russell Microcap is a meaningful milestone for our company and a reflection of the incredible positive momentum we have seen over the past year,” commented Ted Murphy, Founder and CEO of IZEA. “OPT’s inclusion in the Russell Microcap® Index is testament to the Company’s growth potential,” stated Philipp Stratmann, President, and CEO of OPT.
FTSE Russell determines membership for its indexes every year
A company, when listed in the Russell 2000® Index, will remain a member for one year. Membership is based on the broad-market Russell 3000® Index. Subsequently, companies listed as members in the Russell Microcap® Index are in the appropriate growth and value style indexes by default. Determining membership for its indexes is an annual exercise of FTSE Russell. Style attributes and market capitalization rankings are the basis on which FTSE Russell determines membership for its respective indexes.
The London Stock Exchange Group entirely owns FTSE Russell
The London Stock Exchange Group wholly owns FTSE Russell. As a result, dependency on FTSE Russell indexes is high. For more than three decades, ETF providers, investment banks, asset owners, and managers, depending on FTSE Russell indexes to determine their investment performance, create ETFs, structured products, and index-based derivatives. Retail and institutional investors also look up to the FTSE Russell index.