Published August 22, 2012
Russell Investments is liquidating 25 equity index ETFs with around $310 million in assets.
The Russell ETFs slated for closure are linked to Russell benchmarks with specialized strategies like lower volatility (LVOL), high momentum (SHMO), and aggressive growth (AGRG). Having traded on the open market for less than two years, the funds had a short lifespan.
Russell cited the "challenging equity market conditions since the launch of these products," as the reason for planned liquidations.
The closures do not impact the Russell Equity ETF (ONEF), which is benchmarked to the Russell Developed Large Cap Index. ONEF is an actively managed, asset allocated portfolio that Russell is keeping to focus on its multi-asset solutions.
The 25 funds will be closed to new investment on October 9, 2012 and will be delisted from NYSE Arca or the NASDAQ Stock Market effective at the close of trading on October 16, 2012. Full liquidation of the funds is intended to be completed by October 24, 2012.
Shareholders may sell their holdings on the NYSE Arca or NASDAQ through October 16, 2012, incurring any applicable transaction fees from their broker-dealer. All shareholders remaining on October 16, 2012 will receive cash equal to the amount of the net asset value of their Fund shares as of October 16, 2012, which will include any capital gains and dividends, into the cash portion of their brokerage accounts.
Shareholders receiving the final liquidation cash distribution will not incur transaction fees from their broker-dealer in connection with this distribution or the cancellation of their Fund shares. Moreover, shareholders will not bear any expenses associated with the liquidation of the Funds other than bearing indirectly the portfolio transaction costs incurred in liquidating the Funds' assets in advance of the Funds' closure.
ETFs to be discontinued
Russell 1000 High Beta ETF
Russell 1000 Low Beta ETF
Russell 1000 High Volatility ETF
Russell 1000 Low Volatility ETF
Russell 1000 High Momentum ETF
Russell 2000 High Beta ETF
Russell 2000 Low Beta ETF
Russell 2000 High Volatility ETF
Russell 2000 Low Volatility ETF
Russell 2000 High Momentum ETF
Russell Developed ex-U.S. Low Beta ETF
Russell Developed ex-U.S. Low Volatility ETF
Russell Developed ex-U.S. High Momentum ETF
Russell Aggressive Growth ETF
Russell Consistent Growth ETF
Russell Contrarian ETF
Russell Equity Income ETF
Russell Growth at a Reas Price ETF
Russell Low P/E ETF
Russell Small Cap Aggressive Growth ETF
Russell Small Cap Consistent Growth ETF
Russell Small Cap Contrarian ETF
Russell Small Cap Low P/E ETF
Russell High Dividend Yield ETF
Russell Small Cap High Dividend Yld