Russell launches style-based ETF
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.
Recommended for you
Retailisation of private markets such as evergreen funds may seem like appealing options for wholesale and retail investors, but providers risk undermining trust if their products are unclear.
Ethical investment manager Australian Ethical has seen its funds under management rise by a third over FY25 to close out the year at $13.9 billion.
BlackRock Australia’s head of intermediary distribution James Waterworth has taken up a new distribution role at an alternative asset manager, while Antipodes has hired a distribution director.
BlackRock’s iShares ETFs have reported a record first half for inflows, gaining US$192 billion in the past six months, to see overall ETF assets under management rise to US$4.7 trillion as it launches its first active ETF in Australia.
