A $3.5B Fixed Income ETF Transition is Executed Amid Market Volatility

2025-12-08

Russell Investments

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Russell Investments managed a fixed income ETF transition during market volatility. The $3.5 billion restructuring involved changing sub-advisors for two actively managed ETFs, with a focus on minimizing transaction costs and maintaining portfolio alignment.

The process included coordinating multiple stakeholders, navigating liquidity challenges in securitized products, and executing over 1,700 trades with nearly zero settlement fails.

Strategic planning ensured duration and sector exposures matched target portfolios. Communication was maintained through 500+ touchpoints. The transition was completed on schedule, with actual costs aligning to expectations and operational execution supporting a smooth shift in portfolio management.

Key highlights:

Managing market exposure and minimizing transaction costs, during intensely volatile markets
Ensuring best execution while avoiding information leakage
Coordinating across multiple stakeholders including custodians, counterparties, and internal teams

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