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). The Tacoma, Wash.-based company said it plans to focus on actively managed and asset allocation ETF strategies.
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 Oct. 9, 2012 and will be delisted from NYSE Arca or the NASDAQ effective at the close of trading on Oct. 16, 2012. Full liquidation of the funds is intended to be completed by Oct. 24, 2012.