Russell to Liquidate All But One of Its ETFs

Russell Investments, the index provider for some of the largest ETFs, said it will liquidate all 25 of its passively managed ETFs. The move will leave the firm with just one actively managed product, the Russell Equity ETF
ONEF
. The affected Russell ETFs will close to new investment on October 9, 2012 and the funds will be delisted at the close of trading on October 16. Full liquidation of the funds is intended to be completed by October 24, Russell said in a statement. The following Russell ETFs will be shuttered: The Russell 1000 High Beta ETF
HBTA
, the Russell 1000 Low Beta ETF
LBTA
, the Russell 1000 High Volatility ETF
HVOL
, the Russell 1000 Low Volatility ETF
LVOL
, the Russell 1000 High Momentum ETF
HMTM
, the Russell 2000 High Beta ETF
SHBT
, the Russell 2000 Low Beta ETF
SLBT
, the Russell 2000 High Volatility ETF
SHVY
, the Russell 2000 Low Volatility ETF
SLVY
, the Russell 2000 High Momentum ETF
SHMO
, the Russell Developed ex-U.S. Low Beta ETF
XLBT
, Russell Developed ex-U.S. Low Volatility ETF
XLVO
and the Russell Developed ex-U.S. High Momentum ETF
XHMO
. Other Russell funds slated for closure include the following: The Russell Aggressive Growth ETF
AGRG
, the Russell Consistent Growth ETF
CONG
, the Russell Contrarian ETF
CNTR
, the Russell Equity Income ETF
EQIN
, the Russell Growth at a Reasonable Price ETF
GRPC
, the Russell Low P/E ETF
LWPE
, the Russell Small Cap Aggressive Growth ETF
SGGG
, the Russell Small Cap Consistent Growth ETF
SCOG
, the Russell Small Cap Contrarian ETF
SCTR
, the Russell Small Cap Low P/E ETF
SCLP
, the Russell High Dividend Yield ETF
HDIV
and the Russell Small Cap High Dividend Yield ETF
DIVS
. "Given challenging equity market conditions since the launch of these products, Russell determined that proposing the liquidation of the passively managed ETFs at this time is in the best interests of the ETFs and their shareholders," Russell said in the statement. Russell made the announcement after the close of U.S. markets on August 17. Earlier this month,
Russell said it was conducting a strategic review
of its U.S. ETF operations. At the time of that announcement, Russell said it would scaling back its U.S. ETF staff, prompting speculation fund closures could be on the way. Russell joins Direxion and Scottrade's FocusShares in announcing ETF closures in August. Direxion is slated to close nine leveraged products while Scottrade will liquidate all 15 FocusShares ETFs. For more on ETFs, click
here
.

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