Russell Investments has rushed closure of two of the 25 ETFs it plans to shutter by month-end, as the assets in these funds, unimpressive as they were, evaporated a little sooner than anticipated.
Russell first announced in August it would close all but one of its ETFs—25 in total—saying they would close Oct. 17 and their final liquidation would happen by Oct. 24. Shareholders were told at the time that they had through Oct. 16 to sell their positions.
But due to in-kind redemptions of all the funds’ shares this week, both the Russell Low P/E ETF (NYSEArca: LWPE) and the Russell Small Cap Contrarian ETF (NYSEArca: SCTR) were closed Thursday and Friday, respectively, the company said today in a press release.
LWPE’s assets sat at just shy of $5 million since the company announced the impending closure of its funds in mid-August, and until Wednesday it still had $4.8 million in total assets, but by Thursday, those assets were gone.
Similarly, SCTR had $6.6 million in assets following the closure news, and this week saw those assets all but evaporate.
For now, the planned liquidation timeline for the remaining 23 Russell ETFs remains unchanged, but that’s “unless there is an earlier redemption of all outstanding shares in any of the remaining funds,” Russell noted in its press release.
The Affected Funds
Of the remaining 23 funds, shareholders still holding onto shares on Oct. 16 will receive cash equal to the amount of the net asset value of their shares as of that date. That sum will include any capital gains and dividends.
Shareholders receiving the final liquidation cash distribution won’t incur transaction fees from their broker-dealer in connection with this distribution or the cancellation of their shares.
Following is a list of the funds Russell is shutting down:
- Russell 1000 High Beta ETF (NYSEArca: HBTA)
- Russell 1000 Low Beta ETF (NYSEArca: LBTA)
- Russell 1000 High Volatility ETF (NYSEArca HVOL)
- Russell 1000 Low Volatility ETF (NYSEArca: LVOL)
- Russell 1000 High Momentum ETF (NYSEArca: HMTM)
- Russell 2000 High Beta ETF (NYSEArca: SHBT)
- Russell 2000 Low Beta ETF (NYSEArca: SLBT)
- Russell 2000 High Volatility ETF (NYSEArca: SHVY)
- Russell 2000 Low Volatility ETF (NYSEArca: SLVY)
- Russell 2000 High Momentum ETF (NYSEArca: SHMO)
- Russell Developed ex-U.S. Low Beta ETF (NYSEArca: XLBT)
- Russell Developed ex-U.S. Low Volatility ETF (NYSEArca: XLVO)
- Russell Developed ex-U.S. High Momentum ETF (NYSEArca: XHMO)
- Russell Aggressive Growth ETF (NYSEArca: AGRG)
- Russell Consistent Growth ETF (NYSEArca: CONG)
- Russell Contrarian ETF (NYSEArca: CNTR)
- Russell Equity Income ETF (NYSEArca: EQIN)
- Russell Growth at a Reasonable Price ETF (NYSEArca: GRPC)
- Russell Low P/E ETF (NYSEArca: LWPE)
- Russell Small Cap Aggressive Growth ETF (NasdaqGM: SGGG)
- Russell Small Cap Consistent Growth ETF (NasdaqGM: SCOG)
- Russell Small Cap Contrarian ETF (NasdaqGM: SCTR)
- Russell Small Cap Low P/E ETF (NasdaqGM: SCLP)
- Russell High Dividend Yield ETF (NYSEArca: HDIV)
- Russell Small Cap High Dividend Yield ETF (NYSEArca: DIVS)
Buyers—and sellers—beware: Trading mistakes can be costly, but they are avoidable.
Investors have fewer—but better—choices.
Sometimes what’s behind a very high dividend yield is truly surprising.
For VIX-related ETFs to work as that ‘magical’ hedge, you have to time the market. Good luck with that.