Russell to Liquidate All But One of Its ETFs

Russell Investments, the index provider for some of the largest ETFs, said it will liquidate all 25 of its passively managed ETFs. The move will leave the firm with just one actively managed product, the Russell Equity ETF ONEF. The affected Russell ETFs will close to new investment on October 9, 2012 and the funds will be delisted at the close of trading on October 16. Full liquidation of the funds is intended to be completed by October 24, Russell said in a statement. The following Russell ETFs will be shuttered: The Russell 1000 High Beta ETF HBTA, the Russell 1000 Low Beta ETF LBTA, the Russell 1000 High Volatility ETF HVOL, the Russell 1000 Low Volatility ETF LVOL, the Russell 1000 High Momentum ETF HMTM, the Russell 2000 High Beta ETF SHBT, the Russell 2000 Low Beta ETF SLBT, the Russell 2000 High Volatility ETF SHVY, the Russell 2000 Low Volatility ETF SLVY, the Russell 2000 High Momentum ETF SHMO, the Russell Developed ex-U.S. Low Beta ETF XLBT, Russell Developed ex-U.S. Low Volatility ETF XLVO and the Russell Developed ex-U.S. High Momentum ETF XHMO. Other Russell funds slated for closure include the following: The Russell Aggressive Growth ETF AGRG, the Russell Consistent Growth ETF CONG, the Russell Contrarian ETF CNTR, the Russell Equity Income ETF EQIN, the Russell Growth at a Reasonable Price ETF GRPC, the Russell Low P/E ETF LWPE, the Russell Small Cap Aggressive Growth ETF SGGG, the Russell Small Cap Consistent Growth ETF SCOG, the Russell Small Cap Contrarian ETF SCTR, the Russell Small Cap Low P/E ETF SCLP, the Russell High Dividend Yield ETF HDIV and the Russell Small Cap High Dividend Yield ETF DIVS. "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," Russell said in the statement. Russell made the announcement after the close of U.S. markets on August 17. Earlier this month, Russell said it was conducting a strategic review of its U.S. ETF operations. At the time of that announcement, Russell said it would scaling back its U.S. ETF staff, prompting speculation fund closures could be on the way. Russell joins Direxion and Scottrade's FocusShares in announcing ETF closures in August. Direxion is slated to close nine leveraged products while Scottrade will liquidate all 15 FocusShares ETFs. For more on ETFs, click here.