D-Wave Quantum Set to Join Russell 3000® Index

Rhea-AI Summary

D-Wave Quantum (NYSE: QBTS) will join the Russell 3000 Index at the conclusion of the 2024 Russell US Indexes annual reconstitution, effective July 1, 2024. This inclusion captures the 4000 largest US stocks by market capitalization as of April 30, 2024. Membership means automatic inclusion in either the large-cap Russell 1000 Index or small-cap Russell 2000 Index, and appropriate growth and value style indexes. CEO Dr. Alan Baratz noted this as a recognition of D-Wave's leadership in commercial quantum computing. Russell indexes, used widely by investment managers, benchmark $10.5 trillion in assets.

Positive

• D-Wave Quantum's inclusion in the Russell 3000 Index enhances visibility among global investors.
• Membership in the Russell 3000 Index often leads to automatic inclusion in other key indexes like the Russell 1000 or Russell 2000.
• D-Wave's leadership in commercial quantum computing is publicly recognized.
• Increased credibility and potential for broader investor interest due to inclusion in a widely recognized benchmark.
• The Russell indexes serve as benchmarks for $10.5 trillion in assets, indicating strong market relevance.

Negative

• Joining the Russell 3000 Index does not directly translate to immediate financial gains.
• Market-capitalization-based inclusion can lead to volatility if the company's market cap fluctuates.
• Annual reconstitution means membership is only guaranteed for one year, requiring sustained performance.

PALO ALTO, Calif.--(BUSINESS WIRE)-- D-Wave Quantum Inc. (NYSE: QBTS) (“D-Wave” or the “Company”), a leader in quantum computing systems, software, and services and the world’s first commercial supplier of quantum computers, today announced it is set to join the broad-market Russell 3000^® Index at the conclusion of the 2024 Russell US Indexes annual Reconstitution, effective at the open of US equity markets on Monday, July 1st, 2024, according to a preliminary list of additions posted on Friday, May 24th, 2024.

The annual Russell US Indexes Reconstitution captures the 4000 largest US stocks as of Tuesday, April 30th, 2024, ranking them by total market capitalization. Membership in the US all-cap Russell 3000® Index, which remains in place for one year, means automatic inclusion in the large-cap Russell 1000^® Index or small-cap Russell 2000^® Index as well as the appropriate growth and value style indexes. FTSE Russell, a prominent global index provider, determines membership for its Russell indexes primarily by objective, market-capitalization rankings, and style attributes.

“It’s an honor for D-Wave to join the Russell 3000 Index, an important benchmark for the US stock market,” said Dr. Alan Baratz, CEO of D-Wave. “This recognition reflects D-Wave’s leadership in ushering in the era of commercial quantum computing and will greatly increase visibility among the global investor community for the innovative quantum solutions we’re bringing to market.”

Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies. According to the data as of the end of December 2023, about $10.5 trillion in assets are benchmarked against the Russell US indexes, which belong to FTSE Russell.

“Russell indexes—now in their 40th year—continue to evolve to reflect the dynamic US economy. Annual rebalancing plays a vital role in establishing accurate benchmarks, ensuring they correctly mirror their designated market segments and remain unbiased in terms of size and style,” said Fiona Bassett, CEO of FTSE Russell, an LSEG Business.

For more information on the Russell 3000^® Index and the Russell indexes Reconstitution, go to the “Russell Reconstitution” section on the FTSE Russell website.

About D-Wave Quantum Inc.

D-Wave is a leader in the development and delivery of quantum computing systems, software, and services, and is the world’s first commercial supplier of quantum computers—and the only company building both annealing quantum computers and gate-model quantum computers. Our mission is to unlock the power of quantum computing today to benefit business and society. We do this by delivering customer value with practical quantum applications for problems as diverse as logistics, artificial intelligence, materials sciences, drug discovery, scheduling, cybersecurity, fault detection, and financial modeling. D-Wave’s technology has been used by some of the world’s most advanced organizations including Mastercard, Deloitte, Davidson Technologies, ArcelorMittal, Siemens Healthineers, Unisys, NEC Corporation, Pattison Food Group Ltd., DENSO, Lockheed Martin, Forschungszentrum Jülich, University of Southern California, and Los Alamos National Laboratory.

About FTSE Russell

FTSE Russell is a leading global provider of benchmarking, analytics, and data solutions for investors, giving them a precise view of the market relevant to their investment process. A comprehensive range of reliable and accurate indexes provides investors worldwide with the tools they require to measure and benchmark markets across asset classes, styles, or strategies.

FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. For over 30 years, leading asset owners, asset managers, ETF providers and investment banks have chosen FTSE Russell indexes to benchmark their investment performance and create ETFs, structured products, and index-based derivatives. ​​​​​​​

FTSE Russell is focused on applying the highest industry standards in index design and governance, employing transparent rules-based methodology informed by independent committees of leading market participants. FTSE Russell fully embraces the IOSCO Principles, and its Statement of Compliance has received independent assurance. Index innovation is driven by client needs and customer partnerships, allowing FTSE Russell to continually enhance the breadth, depth and reach of its offering.

FTSE Russell is wholly owned by London Stock Exchange Group.

For more information, visit https://www.lseg.com/en/ftse-russell.

Forward-Looking Statements

Certain statements in this press release are forward-looking, as defined in the Private Securities Litigation Reform Act of 1995. These statements involve risks, uncertainties, and other factors that may cause actual results to differ materially from the information expressed or implied by these forward-looking statements and may not be indicative of future results. These forward-looking statements are subject to a number of risks and uncertainties, including, among others, various factors beyond management’s control, including the risks set forth under the heading “Risk Factors” discussed under the caption “Item 1A. Risk Factors” in Part I of our most recent Annual Report on Form 10-K or any updates discussed under the caption “Item 1A. Risk Factors” in Part II of our Quarterly Reports on Form 10-Q and in our other filings with the SEC. Undue reliance should not be placed on the forward-looking statements in this press release in making an investment decision, which are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240528842311/en/

D-Wave

Alex Daigle

media@dwavesys.com

Source: D-Wave Quantum Inc.

FAQ

When will D-Wave Quantum join the Russell 3000 Index?

D-Wave Quantum will join the Russell 3000 Index on July 1, 2024.

What does inclusion in the Russell 3000 Index mean for D-Wave Quantum?

Inclusion means D-Wave Quantum will be part of a major market benchmark, enhancing visibility and credibility among investors.

How does the Russell 3000 Index membership affect D-Wave Quantum's stock performance?

Membership can increase investor interest and potentially boost stock performance due to greater visibility and credibility.

Why is D-Wave Quantum's inclusion in the Russell 3000 Index significant?

It signifies recognition of D-Wave Quantum's leadership in commercial quantum computing and aligns the company with a widely used market benchmark.

What are the criteria for D-Wave Quantum's inclusion in the Russell 3000 Index?

Inclusion is based on market-capitalization rankings as of April 30, 2024, during the annual Russell US Indexes reconstitution.

What other indexes will D-Wave Quantum be part of after joining the Russell 3000?

D-Wave Quantum will also be included in either the large-cap Russell 1000 Index or small-cap Russell 2000 Index and appropriate growth and value style indexes.