FTSE Russell has released the preliminary list for the semi-annual rebalancing of the Russell 3000 Index, indicating changes for several companies in the consumer staples and real estate sectors. Among the updates, beverage maker Reeds has been included in the list of proposed additions. The company is known for its craft soda beverages, such as ginger beer, and has maintained a loyal following in the niche beverage market. In contrast, health and beauty company Skinhealth System appears on the list of proposed removals.

Following the announcement, Reeds' stock price rose 7.55% to close at $1.71, though the company's market capitalization remains relatively small at approximately $18.79 million. While Reeds has faced revenue challenges in recent years, its inclusion in the Russell 3000 Index is expected to attract increased attention from passive investment funds.

Skinhealth System, however, faces a different outlook. The company received a delisting risk notice from Nasdaq as early as May 8, 2026, due to its stock price falling below the minimum bid requirement of $1 for 30 consecutive trading days. According to Nasdaq rules, the company must bring its share price back above $1 and maintain it for 10 consecutive trading days by November 4, 2026, to regain compliance with listing standards.

Analysts note that the annual adjustments to the Russell indices typically take effect in June. Inclusion in the index often leads to passive buying from index funds, while removal may result in selling pressure as funds rebalance their portfolios.

The rebalancing also involves changes for other consumer goods companies, including Nu Skin Enterprises and USANA Health Sciences. Market participants will be closely monitoring the stock performance of these constituents around the time of the official adjustment.