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Apple’s Russell index weighting to fall, shares may drop

Published 06/20/2016, 09:24 AM
Updated 06/20/2016, 09:24 AM

Investing.com - Apple shares (NASDAQ:AAPL) may fall as they are set to be reclassified in the annual reconstitution of the Russell indexes.
Apple's weighting in the Russell 1000 will fall to roughly 2.52% from 2.77%, Reuters reported.
The decline is due to the combination of fewer shares outstanding and Apple's smaller part of the index's capitalization.
The performance of a market-weighted index is more influenced by larger companies, like Apple.
Fund managers who are pegged to the index will have to sell the stock to match the new, lower weighting.
Apple's shares are down 9% since late April when it reported results, including the first revenue drop in 13 years.

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