Russell expands ETF options
Russell Investments is further expanding its exchange-traded fund (ETF) offering with the launch of a new instalment warrant and the announcement of its first venture into ETFs in the United States.
Investors will now be able to invest in the Russell High Dividend Australian Shares ETF through Citigroup’s new CitiFirst Self Funding Instalment, which allows investors to borrow without the risk of margin calls.
Investors will be still be able to receive franking credits and capital appreciation as if they owned shares in the ETF outright, but the distributions will be used to reduce the loan amount.
Amanda Skelly, director of ETFs in Australia, said the instalment warrant gives investors an opportunity to gain moderately geared exposure to the shares in the Russell ETF, which could be popular for both individual and self-managed superannuation fund (SMSF) investors.
In the United States, Russell has stepped into the ETF market with the launch of the Russell Investment Discipline ETFs – a suite of six listed ETFs designed to offer transparent exposure to US large-cap equities using a range of growth and income strategies.
Australian investors who want to invest in the new US ETFs from Australia can do so through the New York Stock Exchange.
AUTHOR
Ashleigh McIntyre
Recommended for you
Pendal has told investors it will start winding up its Enhanced Credit fund from December, its third fund closure this year.
A potential acquisition of Platinum Asset Management by Regal Partners will be beneficial for the “challenged” fund manager, believes Morningstar, but it has warned fund management mergers don’t always run smoothly.
Fund managers made a “big shift” into bond-sensitive sectors like utilities in September and away from cyclicals, while risk appetite is at an 11-month low.
Ahead of the RBA’s upcoming monetary policy meeting next week, BlackRock Australasia has reaffirmed the market’s view that rate cuts are likely out of the picture for 2024.
