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Products November 3, 2011
Russell Launches International Equity Factor ETFs
Russell Investments has launched its first international equity factor exchange-traded funds (ETFs).
Reported by Rebecca Moore
The funds are designed to provide investors with focused exposure to fundamental risk factors within their portfolio’s international equity allocation. The three new Russell Developed ex-U.S. factor ETFs offer exposure to low beta, low volatility, and high momentum stocks in 24 developed countries including Canada.
The Russell Developed ex-U.S. Low Beta ETF (XLBT) focuses on 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.
The Russell Developed ex-U.S. Low Volatility ETF (XLVO) focuses on 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.
The Russell Developed ex-U.S. High Momentum ETF (XHMO) focuses on 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.
The three ETFs have a net expense ratio of 0.25%.