Few Points:

There are many funds that also are "Contra Russell"- that is they short the Russell Index. In order to mirror that, short interest will go up quite substantially. Example: BWEN was removed from Russell Indexes last June...short interest fell from 7.5M to 1.29 M shares. With markets extending, the Russell Indexes currently are currently short quite high right now. Go to NASDAQ.com, check out short interest (for BWEN, there was 1-10 Reverse Split)

The rebalancing of the Russell from an institutional stand point does not affect the markets. Any price increase in the stocks entering the Russell Indexes is based greater on Retail Investors Speculation, than institutional investing. On June 28, right after the market close, Market Makers will make book entries to transfer shares to appropriate Institutions, at the closing prices on that day. This keeps markets fair. Watch the volumes that day, usually completed by 4:10 P.M.

It still will come down to stock performance, and news. Where it will affect LLEN is on non-news days. LLEN will trade more in line with markets; on down days (when no news), LLEN should trade in general direction of market, same on up days; it will lower the volatility, and BETA.