- Transparency. Intraday trading and visibility into holdings.
- Tax efficiency. Potentially fewer capital gains distributions than mutual funds.
- Low cost. Often lower fees than comparable mutual fund.
Read the ETF article to learn more.
We bring our active multi-manager approach to you in a convenient ETF package. Our lineup of funds gives you access to specific asset classes helping you add targeted exposures to address portfolio needs.
Whether you’re building portfolios with our active ETFs or using our Active-Passive Model Strategies for a total portfolio solution, our ETFs offer flexible options to help you serve investors.
Russell Investments Active-Passive Model Strategies blend active management with efficient passive exposures shaped by 40 years of model portfolio experience.
Why investors are putting active ETFs in their portfolios:
Transparency
Active ETFs trade intraday on an exchange providing better liquidity and a clear picture of portfolio holdings.
Tax efficiency
ETFs are widely considered more tax efficient than mutual funds due to their potential to reduce capital gains distributions.
Low cost
Active ETFs generally have lower fees than mutual funds, often allowing investors to keep more of their returns.*
* Investors trading ETFs should also consider transaction costs incurred through their brokerage, such as commissions which could reduce returns.
Source: Morningstar (https://www.morningstar.com/funds/active-etfs-vs-mutual-funds-what-know-before-picking-new-fund)
We seek to help advisors elevate client outcomes through our unique, time-tested approach.
Read the ETF article to learn more.
A multi-manager approach can provide diversification of investment strategies, styles and managers in a single fund, with access to insights from specialist money managers, and ongoing professional oversight.
Russell Investments’ approach involves continually researching investment strategies and managers from around the world, seeking to determine the best combination of active managers and investment styles for the portfolio. Each manager strategy is chosen to serve a specific purpose in the portfolio. Over time, adjustments may be made to ensure the portfolio remains aligned with objectives.
Similar to active mutual fund investing, the risks of active ETF investing may include underperformance or loss of invested capital due to market volatility, economic downturns, or manager decisions. Additionally, investors should consider the following risks when trading ETFs on an exchange:
Active ETFs can offer:
Professional management
Transparency of pricing and holdings
Generally lower fees as compared with similar active mutual funds
No minimum investment
An active ETF, or actively managed exchange-traded fund, is a type of investment fund that is managed by a team of professionals who actively select and manage the securities within the fund. Unlike passive ETFs, which track a specific index, active ETFs aim to outperform their benchmarks by making strategic investment decisions based on market conditions and research.