Russell Investments announced today the U.S. launch of Russell ETFs with the listing of its first suite of innovative exchange traded funds (ETFs), the Russell Investment Discipline ETFs™, on the NYSE Arca. Drawing on Russell’s decades of expertise in multi-manager research and index construction, Russell aims to provide next-generation ETFs to help investors construct portfolios and manage risk. The Russell Investment Discipline ETFs are the first family of ETFs designed to offer focused, transparent and consistent exposure to U.S. large-cap equities across six investment disciplines commonly practiced by professional investment managers.
“As we celebrate our 75th year in the financial services industry in May, the launch of Russell ETFs represents another major step forward in Russell’s storied history of research and innovation,” said Andrew Doman, president and CEO of Russell. “Through a robust offering of ETFs we enhance our steadfast dedication to providing investors with a wide range of innovative products and tailored solutions to help each client reach their individual investment objectives.”
In its build-up as an ETF provider, Russell assembled a seasoned team of ETF veterans from across the industry to marshal their ETF expertise in a new venture built upon Russell’s leadership position in institutional investment insight. Based in large part in San Francisco, the newly formed Russell ETF team also leveraged investment expertise from across Russell’s global network of financial professionals to bring to market the first Investment Discipline ETFs.
“Having been involved in the ETF industry since its inception through my career, I recognized an opportunity, perhaps unique to Russell, to provide sophisticated ETF products that expand beyond traditional market offerings,” said James Polisson, managing director of Russell’s global ETF business. “Our team is committed to offering truly innovative products and we believe that there is a tremendous opportunity for growth by creating ETFs that provide targeted exposures that have not been readily accessible to investors previously.”
The Russell Investment Discipline ETFs were created to help investors implement a position based on specific approaches commonly used by investment managers. The suite includes:
- Russell Aggressive Growth ETF (NYSE: AGRG)
- Russell Consistent Growth ETF (NYSE: CONG)
- Russell Growth at a Reasonable Price ETF (NYSE: GRPC)
- Russell Equity Income ETF (NYSE: EQIN)
- Russell Low P/E ETF (NYSE: LWPE)
- Russell Contrarian ETF (NYSE: CNTR)
Each Russell Investment Discipline ETF tracks the performance of a corresponding Russell Investment Discipline Index, which is independently screened and constructed in order to reflect the return patterns of a particular investment strategy. The Russell Investment Discipline Indexes are constructed from the companies in the Russell 1000® Index, which is the most widely used U.S. large-cap index among institutional investors.
“In developing this first set of ETF products, we sought out the six most prevalent strategies professional investment managers use when selecting individual securities and worked with our investment and index teams to build products that give investors access to actual investment approaches, rather than simply a broad market, style or sector index,” said Andy Arenberg, managing director of Russell’s global ETF distribution.
Today’s announcement follows the acquisition of U.S. One, Inc. earlier this year. Following the acquisition, Russell became the investment advisor for the One Fund (NYSE ticker: ONEF) an ETF of ETFs that launched May 14, 2010. It was subsequently renamed the Russell Equity ETF. Russell also previously launched the Russell High Dividend Australia Shares ETF and Russell Australian Value ETF in Australia.
In this new role as an ETF sponsor, Russell complements its long-established index business which partners with other ETF sponsors in the use of Russell Indexes as benchmarks for their ETF products. The Russell ETFs launched today complement existing ETF products offered by Russell's valued partners, which currently account for $84 billion in ETF assets (as of April 30, 2011).
About Russell ETFs
Russell ETFs were created to deliver a wide range of clearly differentiated market exposures that can help investors meet their individual investment objectives. With Russell ETFs, investors gain access to unique exposures such as investment disciplines. Russell ETFs also launched a dedicated web site. Please visit: www.russelletfs.com.
About Russell Investments
Founded in 1936, Russell Investments is a global financial services firm that serves institutional investors, financial advisers and individuals in more than 35 countries. Over the course of its history, Russell’s innovations have come to define many of the practices that are standard in the investment world today, and have earned the company a reputation for excellence and leadership. The firm has about $161 billion in assets under management, as of March 31, 2011.
Russell Investments is a Washington, USA Corporation, which operates through subsidiaries worldwide and is a subsidiary of The Northwestern Mutual Life Insurance Company.
This material is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from Russell Investments. It is delivered on an "as is" basis without warranty.
Nothing contained in this material is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.
Investors should carefully consider the investment objectives, risks, charges and expenses before investing in Russell Funds. This and other information can be found in the funds? prospectuses, which may be obtained by calling 888-RSL-ETFS (888-775-3837) or downloading the file from russelletfs.com. Read the prospectus carefully before investing. Investing involves risk including possible loss of principal.
Past performance is not a guarantee of future results.
ETFs are subject to risks similar to those of stocks, including those related to short-selling and margin account maintenance, if applicable. Funds that emphasize investments in aggressive growth stocks generally are more volatile than other types of investments, as aggressive growth companies may participate in new industries, products or markets. Aggressive growth companies may operate in more highly concentrated markets. Investments in growth stocks are subject to the risks of common stocks, as well as the risks that (i) the majority of earnings are retained and not paid out as dividends to investors or (ii) the stock price may rise and fall significantly based on investors’ perceptions of future growth prospects. Investments in value stocks are subject to the risks of common stocks, as well as the risks that (i) their intrinsic values may never be realized by the market or (ii) such stock may turn out not to have been undervalued. The risks of investing in deep value stocks are magnified because of the greater potential losses associated with investing in these stocks. The funds are passively managed and may not match or achieve a high degree of correlation with the return of their corresponding Index. As with all investments, there are certain risks of investing in an ETF, and you could lose money on an investment in an ETF.
Not FDIC Insured. May Lose Value. Not Bank Guaranteed.
Russell Investment Discipline ETFs are new and have limited operating history. There is no assurance the investment process will consistently lead to successful investing. There is no assurance the stated objectives will be met.
Russell ETFs are distributed by ALPS Distributors, Inc. (“ALPS”). Russell Investment Management Company (“RIMCo,” dba Russell Investments) serves as the investment advisor to the ETFs. ALPS and RIMCo are separate and unaffiliated.
ALPS Distributors, Inc. does not distribute products outside the U.S. and is not the distributor for the Russell High Dividend Australia Shares ETF and Russell Australian Value ETF in Australia.