Apple's Representation In Russel Index To Fall

Apple Inc. AAPL's stock has lost more than 8 percent since the start of 2016 and nearly 25 percent over the past year.

More than one year ago, analysts and investors were wondering when Apple's valuation would hit the $1 trillion mark. Today, the stock is trading with a valuation that has lost nearly a quarter of $1 billion.

According to Reuters, Apple's stock could see further downside as index and asset managers will be forced to lower their exposure to Apple's stock as the company loses some of its weighting in major indices.

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The report noted that around $1.3 billion worth of Apple's stock will be sold after Friday's market close when index managers at Russell reconstitutes their holdings.

Reuters, citing analysts at Credit Suisse, added that Apple's weighting in the Russell 1000 index will fall to approximately 2.52 percent from its current 2.77 percent.

Fund managers whose portfolios are designed to mimic the Russell 1000 index will also need to sell a part of their Apple stock.

Apple is considered to be both a growth and value stock, according to FTSE Russell. The firm characterizes Apple as being 92 percent growth and 8 percent value. Accordingly, there will be over $850 million worth of Apple's stock being sold from growth funds pegged to the Russell index and about $400 million of buying from the value side.

Shares of Apple were trading higher by 0.65 percent late Monday morning.