Russell expands family of "investment discipline" ETFs
Four new ETFs launched today offer focused exposure in the small cap asset class
Seattle, WA - Russell Investments launched four Small Cap Investment Discipline exchange-traded funds (ETFs) on NASDAQ today, expanding its line-up of innovative Investment Discipline ETFs. Each is designed to provide investors with access to specific investment strategies that mirror the way equity managers tend to invest.
“We created these unique products to answer a very specific need in the market,” said James Polisson, CEO of Russell’s global ETF business. “Sophisticated investors now have an investment vehicle that provides them with focused exposure in the small cap asset class beyond the strict classification by sector and style.”
The four ETFs listed today are based on corresponding and newly launched Russell U.S. Small Cap Investment Discipline Indexes, which were constructed to give focused exposure to investment approaches commonly practiced by professional small cap equity managers. These underlying indexes leverage Russell’s long history and expertise in small cap index creation as well as Russell’s unique understanding of how managers invest. By evaluating the characteristics of thousands of managers in specific disciplines, Russell identified a set of key characteristics that define a small cap portfolio within each discipline.
The new suite of small cap ETF consists of the following:
- Russell Small Cap Aggressive Growth ETF (Ticker: SGGG)
- Russell Small Cap Consistent Growth ETF (Ticker: SCOG)
- Russell Small Cap Low P/E ETF (Ticker: SCLP)
- Russell Small Cap Contrarian ETF (Ticker: SCTR)
“The new Small Cap Investment Discipline ETFs offer multiple benefits to investors looking for small cap equity exposure,” said David Koenig, Investment Strategist at Russell Investments. “Not only can they be used as a standalone way to implement a specific investment discipline within a portfolio, they also represent potential complements for existing Russell 2000® Index exposures or small cap actively managed mutual funds.”
Following the launch of Russell ETFs in the U.S. market in May of this year, Russell now offers a total of 21 ETFs in the United States as well as two in Australia.
About Russell ETFs
Russell ETFs were created to deliver a wide range of clearly differentiated market exposures that can help investors meet their individual investment objectives. With Russell ETFs, investors gain access to unique exposures such as investment disciplines. Russell ETFs also launched a dedicated web site. Please visit: www.russelletfs.com.
About Russell Investments
Founded in 1936, Russell Investments is a global financial services firm that serves institutional investors, financial advisors and individuals in more than 40 countries.
Through a unique combination of interlinked businesses, Russell delivers financial products, services and advice. A pioneer, Russell began its strategic pension fund consulting business in 1969 and today is trusted by many well-known worldwide institutions for investment advice. Headquartered in Seattle, Washington, USA and with offices in major financial centers worldwide, Russell has $163 billion in assets under management (as of 6/30/2011) in its mutual funds, retirement products, and institutional funds, and is well recognized for its depth of research and quality of manager selection. Russell offers a comprehensive range of implementation services that help institutional clients maximize their assets. The Russell Indexes calculate over 50,000 benchmarks daily covering 85 countries and more than 10,000 securities.
Russell Investments is a Washington, USA Corporation, which operates through subsidiaries worldwide and is a subsidiary of The Northwestern Mutual Life Insurance Company.
This material is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from Russell Investments. It is delivered on an “as is” basis without warranty.
Nothing contained in this material is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.
Investors should carefully consider the investment objectives, risks, charges and expenses before investing in Russell Funds. This and other information can be found in the funds? prospectuses, which may be obtained by calling 888-RSL-ETFS (888-775-3837) or downloading the file from russelletfs.com. Read the prospectus carefully before investing. Investing involves risk including possible loss of principal.
Past performance is not a guarantee of future results.
ETFs are subject to risks similar to those of stocks, including those related to short-selling and margin account maintenance, if applicable. Funds that emphasize investments in aggressive growth stocks generally are more volatile than other types of investments, as aggressive growth companies may participate in new industries, products or markets. Aggressive growth companies may operate in more highly concentrated markets. Investments in growth stocks are subject to the risks of common stocks, as well as the risks that (i) the majority of earnings are retained and not paid out as dividends to investors or (ii) the stock price may rise and fall significantly based on investors’ perceptions of future growth prospects. Investments in value stocks are subject to the risks of common stocks, as well as the risks that (i) their intrinsic values may never be realized by the market or (ii) such stock may turn out not to have been undervalued. The risks of investing in deep value stocks are magnified because of the greater potential losses associated with investing in these stocks. The funds are passively managed and may not match or achieve a high degree of correlation with the return of their corresponding Index. As with all investments, there are certain risks of investing in an ETF, and you could lose money on an investment in an ETF.
Small cap investments are subject to considerable price fluctuations and are more volatile than large cap stocks. Investors should consider the additional risks involved in small cap investments.
Not FDIC Insured. May Lose Value. Not Bank Guaranteed.
Russell Investment Discipline ETFs are new and have limited operating history. There is no assurance the investment process will consistently lead to successful investing. There is no assurance the stated objectives will be met.
Russell ETFs are distributed by ALPS Distributors, Inc. (“ALPS”). Russell Investment Management Company (“RIMCo,” dba Russell Investments) serves as the investment advisor to the ETFs. ALPS and RIMCo are separate and unaffiliated.
ALPS Distributors, Inc. does not distribute products outside the U.S. and is not the distributor for the Russell High Dividend Australia Shares ETF and Russell Australian Value ETF in Australia.
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