The Russell 1000 Index, a stock market index that tracks the highest-ranking 1,000 stocks in the Russell 3000 Index, is set to welcome 38 new members.

Among the companies making the move from the Index, which tracks smaller companies, are notable names such as Super Micro Computer (NASDAQ:), MicroStrategy, and Carvana. These additions reflect a shift of 28 companies from the small-cap spectrum to the large-cap index.

The Technology sector is gaining a significant boost with seven new entrants, including Super Micro Computer and MicroStrategy.

The Consumer Discretionary and Energy sectors are also well represented, with five companies each joining the Russell 1000 Index; Carvana is among the notable Consumer Discretionary firms, while Permian Resources is a key addition from the Energy industry.

Other sectors such as Industrials, Health Care, Financials, and Consumer Staples will also see new representation with the remaining 11 companies.

This year's index reconstitution is also notable for the inclusion of three recent initial public offerings (IPOs) directly into the Russell 1000 Index, representing the Technology, Consumer Discretionary, and Industrials sectors.

Moreover, 11 IPOs will be introduced to the Russell 2000 Index, with Health Care IPOs accounting for seven of those and the rest spread across Technology, Industrials, Real Estate, and Energy sectors.

30 companies will transition from the Russell 1000 Index to the smaller-cap Russell 2000 Index. Moreover, 116 companies are set to graduate from the Russell Microcap Index, which includes smaller public companies.

The Health Care sector leads this migration with 41 companies, followed by 15 from Financials, and 13 each from Technology and Industrials, highlighting a dynamic change in the makeup of these influential indexes.