Russell ETFs

Russell Factor ETFs

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Now more than ever, it's critical to have a thoughtful approach to managing risk. But how? Russell Factor ETFs represent a new way to manage exposure to stocks with specific style factor characteristics–such as volatility, beta, or momentum. They allow you to increase or decrease your exposure and potentially enhance returns across large cap, small cap and international equities.

In addition, Russell Factor ETFs are grounded in experience and long-standing strategic thinking based on Russell's more than 75 years of insight into institutional investment practices. Our ETFs track the Russell-Axioma Factor Indexes–a series of indexes that bring together Russell's expertise in index construction and investment management with advanced risk modeling and portfolio construction capabilities from Axioma, a premier provider of risk analytics.

View the Russell Factor ETFs - U.S. Large Cap
TICKER RUSSELL FACTOR ETF FOCUSED EXPOSURE
Russell 1000® High Beta ETF Russell 1000® High Beta ETF Large cap stocks with the highest predicted beta, or sensitivity to price changes of the broad market, over the next three to six months.
Russell 1000® High Momentum ETF Russell 1000® High Momentum ETF Large cap stocks that have the highest cumulative total returns over the previous 250 trading days, excluding the last 20 trading days.
Russell 1000® High Volatility ETF Russell 1000® High Volatility ETF Large cap stocks that have exhibited the highest total return variability over the previous 60 trading days.
Russell 1000® Low Beta ETF Russell 1000® Low Beta ETF Large cap stocks with the lowest predicted beta, or sensitivity to price changes of the broad market, over the next three to six months.
Russell 1000® Low Volatility ETF Russell 1000® Low Volatility ETF Large cap stocks that have exhibited the lowest total return variability over the previous 60 trading days.
View the Russell Factor ETFs - U.S. Small Cap
TICKER RUSSELL FACTOR ETF FOCUSED EXPOSURE
Russell 2000® High Beta ETF Russell 2000® High Beta ETF Small cap stocks with the highest predicted beta, or sensitivity to price changes of the broad market, over the next three to six months.
Russell 2000® High Momentum ETF Russell 2000® High Momentum ETF Small cap stocks that have the highest cumulative returns over the previous 250 trading days, excluding the last 20 trading days.
Russell 2000® High Volatility ETF Russell 2000® High Volatility ETF Small cap stocks that have exhibited the highest total return variability over the previous 60 trading days.
Russell 2000® Low Beta ETF Russell 2000® Low Beta ETF Small cap stocks with the lowest predicted beta, or sensitivity to price changes of the broad market, over the next three to six months.
Russell 2000® Low Volatility ETF Russell 2000® Low Volatility ETF Small cap stocks that have exhibited the lowest total return variability over the previous 60 trading days.
View the Russell Factor ETFs - International Large Cap
TICKER RUSSELL FACTOR ETF FOCUSED EXPOSURE
Russell Developed ex-U.S. Low Beta ETF Russell Developed ex-U.S. Low Beta ETF Large cap stocks in developed markets outside the U.S. with the lowest predicted beta, or sensitivity to price changes of the broad market, over the next three to six months.
Russell Developed ex-U.S. Low Volatility ETF Russell Developed ex-U.S. Low Volatility ETF Large cap stocks in developed markets outside the U.S. that have exhibited the lowest variability in total returns over the previous 60 trading days.
Russell Developed ex-U.S. High Momentum ETF Russell Developed ex-U.S. High Momentum ETF Large cap stocks in developed markets outside the U.S. that have exhibited the highest cumulative total returns over the previous 250 trading days, excluding the last 20 trading days.



What is a factor?

Factors include any common market-wide drivers of security returns. A few familiar factors include fundamental-based drivers of risk and return such as size, growth and value. Other factors include market-based influences on risk and return. These include:
  • Beta
  • Volatility
  • Momentum
Russell Factor ETFs give all investors access to risk management strategies that had previously been available only to the largest, most sophisticated asset managers.



How to use Factor ETFs

Russell Factor ETFs have multiple applications for investors seeking either to target specific factor exposures, manage risk or potentially improve the diversification of their portfolios.

Adjust equity market sensitivity in a single trade
Whether you're looking to increase or decrease the beta of your portfolio based on your unique risk/return profile, Russell High and Low Beta ETFs give you the flexibility to directly manage equity market sensitivity in a single trade.

Help manage volatility while staying invested
Russell Low Volatility ETFs provide a new way to target potentially smoother equity performance while staying invested in the equity markets. Russell High Volatility ETFs can be used to implement a tactical exposure to potential upside from stocks with high volatility or they can be paired with their low volatility counterparts to help manage a portfolio's total volatility.

Target stocks that have historically outperformed the market environment
Russell High Momentum ETFs offer efficient, cost-effective access to a portfolio of stocks with the highest medium-term total returns. These types of stocks may increase diversification, particularly relative to value-oriented portfolios, and enhance long-term risk-adjusted returns.



A balance of three critical criteria

An effective factor index must consider three critical but often competing characteristics, as it's not always possible to achieve all three simultaneously. Russell Factor ETFs are designed to track indexes that seek to balance the tradeoffs among the following three index characteristics:

True factor returns
Designed to deliver returns that closely match those of a simple factor portfolio that invests in the subset of the Russell 1000® or Russell 2000® Index constituents with the highest exposure to the targeted risk factor.

Turnover management
Designed to consider turnover and transaction size during the monthly reconstitution of each index. (Turnover may be heightened during periods of increased market volatility.)

Factor purity
Constructed to deliver focused exposure to the targeted risk factor while minimizing exposure to other factors.


Download our Product List
Russell Factor ETFs Product List (PDF)

Download our Product Guide
Russell Factor ETFs Product Guide (PDF)

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Funds that emphasize exposure to high beta, high volatility or high momentum stocks are seen as having a higher risk profile than the overall market. However, a portfolio comprised of high beta or high volatility stocks may not produce investment exposure that is more sensitive or has higher variability to changes in such stocks' price levels. Positive momentum stocks may experience periods of relative underperformance and may not produce investment experience consistent with prior performance. Funds that emphasize exposure to low beta or low volatility stocks are seen as having a lower risk profile than the overall market. However, a portfolio comprised of low beta or low volatility stocks may not produce investment exposure that is less sensitive or has lower variability to a change in price level.

The Russell Factor ETFs are new and have limited operating history. There is no assurance the investment process will consistently lead to successful investing. There is no assurance the stated objectives will be met.

Index Risk. The Index, and therefore the Fund, may not exhibit the expected return pattern due to unpredictable factor correlations, changes in an Index component's factor characteristics between Index reconstitutions or tracking error between the Index and the target portfolio.

Russell ETFs and their corresponding Indexes are new and have limited operating history. These ETFs are passively managed and may not match or achieve a high degree of correlation with the return of their corresponding Index. New indexes are also subject to errors in construction which may result in unintended exposures.

ALPS Distributors, Inc., Russell Investment Management Company ("RIMCo", dba Russell Investments), and AXIOMA are separate and unaffiliated.

The fund is passively managed and may not match or achieve a high degree of correlation with the return of the Index. As with all investments, there are certain risks of investing in an ETF, and you could lose money on an investment in an ETF.

Shares of Russell ETFs are not individually redeemable and trade at market price (not NAV). Shares may be acquired and redeemed in Creation Units only, typically consisting of aggregations of 100,000 shares. Investors may purchase or sell ETF shares throughout the day on an exchange through a securities brokerage account.

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© Russell Investments 2014. All rights reserved.
Investors should carefully consider the investment objectives, risks, charges and expenses before investing in Russell ETFs. This and other information can be found in the funds' prospectuses, which may be obtained by calling 1-888-RSL-ETFS (1-888-775-3837) or downloading the file from www.russelletfs.com. Read the applicable prospectuses carefully before investing.

Investing involves risk.

not FDIC insured

Shares of Russell ETFs may be sold throughout the day on an exchange through a securities brokerage account. Fund shares are not individually redeemable and will be issued and redeemed at their NAV only through creation units. Diversification does not eliminate the risk of experiencing investment losses. All ETFs are subject to management fees and expenses.

All registered investment companies, including Russell ETFs, are obliged to distribute portfolio gains to shareholders at year-end, regardless of performance. Trading Russell ETFs will also generate tax consequences and transaction expenses. The information provided is not intended to be tax advice. Tax consequences of dividend distributions may vary by individual taxpayer.

Russell ETFs are distributed by ALPS Distributors, Inc. ("ALPS"). Russell Investment Management Company ("RIMCo", dba Russell Investments) serves as the investment advisor to the ETFs. ALPS and RIMCo are separate and unaffiliated. Neither RIMCo nor ALPS nor any of their affiliates provides tax advice. Please note that (i) any discussion of U.S. tax matters contained in this communication cannot be used by you for the purpose of avoiding tax penalties; (ii) this communication was written to support the promotion or marketing of the matters addressed herein; and (iii) you should seek advice based on your particular circumstances from an independent tax advisor.

Please note the content on this Website is intended for US audiences only. The Russell ETFs are not eligible for sale in all jurisdictions or to all categories of investors. Nothing contained in this material is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this Website should not be acted upon without obtaining special legal, tax, and investment advice from a licensed professional.

Russell Investments is the owner of the trademarks, service marks and copyrights related to its indexes and funds.
First used October 2012
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