Russell launches style-based ETF

institutional-investors/australian-market/portfolio-manager/cent/

17 March 2011
| By Milana Pokrajac |

Russell Investments has launched its second Australian exchange-traded fund (ETF), Russell Australian Value (RVL) ETF, which was developed based on the manager’s research on value premiums and investor feedback.

The research found that over time, passive value based strategies have typically delivered a premium of 1.5 per cent to 3 per cent over the broad market in Australia.

Portfolio manager at Russell Investments, Scott Bennett, said the manager talked to a range of investors before launching RVL.

“[We] found there is a gap for something which provides an easy way to access this part of the market,” Bennett said.

Russell said that RVL would be the first style-based ETF to hit the Australian market and will target institutional investors.

“It will aim to complement rather than compete with managed funds and can potentially be used as a plug for an active manager, while a new manager is being found,” the company said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

5 months 1 week ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

5 months 1 week ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

7 months 2 weeks ago

The RBA has handed down its much-anticipated rate decision, following widespread expectations of a close call....

3 days 6 hours ago

The FSCP has issued a written direction to an adviser who charged clients “extraordinary fees” for inappropriate and conflicted advice, as well as encouraged them to swit...

2 weeks 4 days ago

ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager. ...

4 weeks ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
5