First Advantage Corporation was dropped from the Russell 2000 Growth-Defensive Index, the Russell 2000 Defensive Index, and the Russell 2000 Value-Defensive Index on June 30, 2025. These changes are part of the routine annual rebalancing of the Russell indices, which can affect a company's institutional ownership.
Inclusion or exclusion from major indices like the Russell 2000 can influence investment flows, as many passive funds track these benchmarks. Being removed from these indices may lead to selling pressure from funds that are mandated to align their portfolios with the updated index compositions.
The rebalancing reflects a shift in the company's classification within the Russell framework. Investors typically monitor such index changes for their potential impact on trading liquidity and the investor base, as it can alter the demand for the company's shares.
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