Brookfield Asset Management and On Holding Approach FTSE Russell 1000 Inclusion

FTSE Russell has confirmed its latest annual restructuring for the FTSE Russell 1000 $^RUI, introducing 36 new companies into the broad US large-cap index. Of these, 19 have advanced from the FTSE Russell 2000 $^RUT, driven by significant growth in market capitalization. The adjustments take effect after market close on June 27.

Outperformance: Brookfield Asset Management and On Holding

Brookfield Asset Management $BAM, valued at around 91 billion USD, has recorded over 40% stock appreciation over the past year. This surge reflects increased investor interest in alternative asset managers and expanded operational reach.

On Holding $ONON, a Swiss athletic footwear brand, posted a more than 50% rally, enabled by effective market positioning. Gaining ground against established names such as Nike $NKE and Puma SE $PUM.DE, On Holding has exploited demand for innovation within the running and lifestyle footwear sectors.

Fundamental Shifts Driving Index Changes

1. Corporate Mobility Across Market Caps. The transition of 19 firms from RU2000 to RU1000 highlights rising capital concentrations among former small- and mid-cap entities, signaling evolving industry competitiveness.

2. Equity Performance as a Growth Engine. BAM and On Holding lead the cohort due to substantial price momentum, reflecting sectoral revaluation and dynamism in capital flows.

3. Footwear Sector’s Rebalancing. ONON’s advance illustrates the volatility and rapid adjustment in consumer preferences, especially when incumbents like NIKE and PUMA cede share to agile newcomers.

4. Dynamic Index Administration. With volatility and trading volumes escalating, FTSE Russell will move to semi-annual US index reviews starting in 2026. Enhanced frequency, as noted by CEO Fiona Bassett, aims to keep benchmarks aligned with contemporary market shifts.

Market Implications of the Index Update

The addition of rapidly scaling companies into the FTSE Russell 1000 will recalibrate passive investment vehicles, ETFs, and related strategies benchmarked to the RU1000. The shift to biannual reviews responds to a new environment of persistent volatility and transactional intensity, optimizing the relevance and representativeness of the index.