Shares of Velo3D Inc (NASDAQ: VELO) rose 7.1% on Monday after the company was added to both the Russell 3000 Index and the Russell Microcap Index. The changes took effect when U.S. markets opened on June 29, part of the first reconstitution of the Russell indexes for 2026.
The Russell reconstitution process evaluates up to the 4,000 largest U.S. stocks based on total market capitalization as of April 30. Inclusion in the Russell 3000 remains in force until the next semi-annual reconstitution - scheduled for December 2026 - and carries with it automatic placement in either the large-cap Russell 1000 Index or the small-cap Russell 2000 Index, as well as the related growth and value style indexes.
Arun Jeldi, Velo3D's chief executive officer, commented on the development, saying: "Being added to the Russell 3000 and Russell Microcap indexes is an important milestone for Velo3D. We have made meaningful strides in transforming the company, advancing our technology leadership, and creating value for shareholders. Inclusion in these widely followed indexes broadens our exposure to the investment community."
Russell indexes are commonly used by investment managers and institutional investors as the basis for index funds and as benchmarks for active investment strategies. According to the Russell family of indexes, approximately $12.2 trillion in assets were benchmarked to the Russell U.S. indexes as of the end of May 2026. The Russell indexes are maintained by FTSE Russell.
Velo3D specializes in metal additive manufacturing for aerospace and defense supply chains. The company's integrated offering consists of Flow print preparation software, the Sapphire line of printers, and the Assure quality control system. The combination of hardware, software, and quality assurance tools represents the company's packaged solution for customers in its target markets.
Market context and implications
The company's addition to widely followed indexes increases its visibility among institutional investors and passive funds that track Russell benchmarks. That potential increase in investor attention coincided with the share-price rise on the day the changes took effect.
Membership in the Russell 3000 is anchored to the semi-annual reconstitution cycle - a structural feature that determines index composition based on market capitalization rankings established at specific cut-off dates. As a result, index inclusion is tied to the company's standing in those rankings until the next formal re-evaluation.