The Russell said the Factor ETFs aim to deliver focused large cap and small cap exposure to risk factors such as high beta, low beta, high volatility, low volatility and high momentum, while also managing portfolio turnover and control exposure to other non-targeted risk factors.
Russel added that these Factor ETFs, designed to track factor indexes that were created by Russell Indexes in partnership with Axioma, a provider of risk analysis, portfolio rebalancing and performance attribution products for the financial services industry.
According to the Russel Investment, each Factor ETF is constructed from the membership list of the US large-cap Russell 1000 Index or the US small-cap Russell 2000 Index, and each seeks the investment results that closely correspond to its individual Russell-Axioma Factor Index.
These new ETFs constitute Russell’s second series of ETF products launched in the US market in May, following the launch of Russell Investment Discipline ETFs on May 19.
