Russell pulls plug on passive ETFs
By Randy Diamond | August 17, 2012 7:42 pm
Russell Investments on Friday announced that all 25 of its passively managed ETFs will be shut down.
“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,“ according to a news release from Russell.
The 25 funds, which have a combined $310 million in assets, will be closed to new business on Oct. 9 and will be delisted from either the New York Stock Exchange or Nasdaq Stock Market at the close of trading on Oct.16.
The company announced earlier this month that it was doing a strategic review of its ETF business.
Russell says it will maintain its actively managed Russell Equity ETF.
The closure comes 15 months after Russell launched the first of its passively run ETFs.
Russell spokesman Steve Claiborne did not immediately return phone calls.