Russell's new ETF to target instos
Russell Investments has launched a new exchange-traded-fund (ETF), Russell Australian Value ETF, which targets institutional investors.
The company said the new ETF aimed to complement rather than compete with managed funds, and could potentially be used as a plug for an active manager while a new manager is being found.
The portfolio manager at Russell, Scott Bennett, said the company had spoken extensively to institutions about their needs and potential future use of ETFs, and discovered there was a gap in the market for a style-based tool.
Russell Australian Value ETF was developed based on the research on value premiums and investor feedback.
The research found that over time, passive value based strategies had typically delivered a premium of 1.5 per cent to 3 per cent over the broad market in Australia.
The new fund is Russell’s second ETF, which the company believes would gain as much support as its first ETF.
Russell Australia High Dividend ETF has collected over $140 million in assets under management since its launch less than a year ago.
Recommended for you
Ethical super fund Australian Ethical has announced the appointment of Anthony Lane as chief operating officer.
The structural shift towards active ETFs will reshape the asset management industry, according to McKinsey, and financial advisers will be a key group for managers to focus their distribution.
ASIC has warned that practices across the $200 billion private credit market are inconsistent and, in some cases, require serious improvement.
A surge in electricity prices has driven the monthly Consumer Price Index to its highest level in a year, exceeding forecasts.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
225.31 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
120.73 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
72.47 3 y p.a(%)
4
Paradice Australian Mid Cap A
69.09 3 y p.a(%)
5
Global X Ultra Long Nasdaq 100 Complex ETF
61.94 3 y p.a(%)
