Russell Investments, money manager and index provider, introduced three new exchange traded funds that use a factor-based methodology. The ETFs invest in stocks that display low beta, low volatility and high momentum.
“Russell now offers a comprehensive global family of factor-based ETFs, providing investors with a readily accessible way to gain exposure to low volatility, low beta and high momentum factors within a portfolio that covers U.S. large-cap, U.S. small-cap and ex-U.S. large-cap markets,” James Polisson, managing director of Russell’s global ETF business, said. “The addition of these international equity factor ETFs is particularly timely as investors may be starting to look toward year-end portfolio rebalancing.” [Russell Launches Small Cap ETFs]
The new funds are:
- Russell Developed ex-U.S. Low Beta ETF (NYSEArca: XLBT)
- Russell Developed ex-U.S. Low Volatility ETF (NYSEArca: XLVO)
- Russell Development ex-U.S. High Momentum ETF (NYSEArca: XHMO)
As of late, Russell has been moving to grow its line-up of “intelligent” beta products, and investment discipline ETFs. The company is planning on making a name for itself with the ETF community by offering such funds and by expanding into the transparent actively managed ETF space.
Axioma is the company that provides Russell with the risk metrics software necessary to create the newly created Russell factor ETFs, reports Oliver Ludwig for Index Universe. [How to Sift Through the Hundreds of New ETFs]
“Frankly it is something only Russell can do,” Greg Friedman, managing director of Russell’s global ETF product group, said. “We are the only ones they partner with to give superiority around factor investing.”
Tisha Guerrero contributed to this article.
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