Lumentum Holdings exited the Russell 1000 Value and Russell Midcap Value indices in late June 2026. This removal occurred during the annual Russell reconstitution, which rebalances U.S. equity benchmarks based on market capitalization and investment style.
The exclusion triggers forced selling by passively managed funds and exchange-traded funds (ETFs) required to track these benchmarks. This shift in ownership may significantly impact the stock's trading liquidity.
Lumentum’s core business strategy remains unchanged despite the market structure event. The company continues to focus on high-growth demand for optical components driven by AI infrastructure and cloud data centers.