Russell Investments Plans Family Of 11 ETFs

May 10, 2010

Russell Investments, the index and financial analytics provider, plans to offer 11 passively managed exchange-traded ETFs that are global in focus and based on a number of its indexes, including the Russell Global 1000, 2000 and 3000, according to a filing with the Securities and Exchange Commission.

These are the first ETFs from the Tacoma, Wash.-based company, which is best known for providing institutional investors with tools to execute investment strategies. The firm laid the regulatory groundwork for the fund offerings with a so-called exemptive relief filing last summer.

It plans for three broad-based funds based on its Russell Global 1000, Global 2000 and Global 3000 indexes, and aims to roll out value and growth ETFs along with each of the three broad strategies. It also filed to launch two large-cap funds, one focused on developed markets excluding the
U.S.
, the other on emerging markets.

The ETFs based on the Russell Global 1000 index are: The Russell Global 1000 ETF, the Russell Global 1000 Growth ETF and Russell Global 1000 Value ETF. Those based on the Russell Global 2000 benchmark are: The Russell Global 2000 ETF, Russell Global 2000 Growth ETF and the Russell Global 2000 Value ETF. The funds designed around the Russell Global 3000 index are the Russell Global 3000 ETF, the Russell Global 3000 Growth ETF and the Russell Global 3000 Value ETF.

The two large-cap funds are the Russell Developed ex US Large Cap ETF and the Russell Emerging Markets Large Cap ETF.

Russell said the proposed funds will all use representative sampling strategies, which means they may not own all the securities in the relevant underlying indexes.

It didn’t include ticker symbols or annual management fees for the funds in the filing.

Exemptive relief filings grant the ETF firms exception to sections of the Investment Act of 1940 and are just the first step in the path to launching ETFs. It often takes at least six to 12 months from the date of the initial filing for a company’s first ETF to hit the market.

 

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