GME – Russell 1000 vs Russell 2000 – #stocks chatter

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GME - Russell 1000 vs Russell 2000
If you havent seen the news, the Russell indexes' annual reconstitution is coming up next week and it looks like GME is going to be moving up. How will that affect things? Well, mainly, a selloff of Russell2000 index and a buy into Russell1000. That said though, GME will be a tiny fish in the Russell1000 and there wont be as many buys out there, so that equates to lots of shares being sold off and hitting the open market.

Taken from the Dow Jones news wire:

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Although there is three times as much money in passive funds tracking the Russell 1000's broad, value, and growth indexes as in those tracking the Russell 2000 indexes, GameStop's ([GME](https://snapshot.fidelity.com/fidresearch/snapshot/landing.jhtml?symbol=GME#/research)) weight in the large-cap indexes would be very small. The Russell 1000 includes megacompanies such as Apple (AAPL) and Microsoft (MSFT).

That means that overall, there would be more selling than buying. Based on GameStop's ([GME](https://snapshot.fidelity.com/fidresearch/snapshot/landing.jhtml?symbol=GME#/research)) current free-float market cap, the stock will likely account for just a few hundredths of a percent of the Russell 1000, down from nearly half a percent in the Russell 2000. Jefferies strategist Steven DeSanctis estimates that net selling of GameStop ([GME](https://snapshot.fidelity.com/fidresearch/snapshot/landing.jhtml?symbol=GME#/research)) stock by index-funds will be about 5 million shares, about half of the stock's average daily volume over the past 30 days.

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Seems to me that this type of news would spur more shorting due to selloff as the stock moves between indexes, giving shorts lots of room to cover.

What do you guys think?
https://www.reddit.com/r/StockMarket/comments/o1xsn4/gme_russell_1000_vs_russell_2000/

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