Russell Investments Expands Canadian ETF Lineup With Five New Offerings

Executive Summary

• Russell Investments Canada Limited announced the launch of five new ETFs on the Toronto Stock Exchange, expanding its Canadian ETF platform.
• The lineup includes two fixed‑income ETFs (HALO and RBND) and three multi‑factor equity ETFs (RQCA, RQUS, RQIN), each offering cost‑effective exposure to proprietary strategies.
• Management fees are 0.35% for the fixed‑income funds and 0.30% for the equity funds, underscoring a competitive pricing model for Canadian advisors and investors.

Key Details

• New ETFs:
• HALO – Russell Investments Fallen Angels ETF (first Canadian fallen‑angels fixed‑income strategy).
• RBND – Russell Investments Core Plus Fixed Income ETF (≈80% active fixed‑income pool, 20% HALO).
• RQCA – Multi‑Factor Canadian Equity Pool – ETF Units.
• RQUS – Multi‑Factor U.S. Equity Pool – ETF Units.
• RQIN – Multi‑Factor International Equity Pool – ETF Units.
• Management Fees: Fixed‑income ETFs (HALO, RBND) – 0.35%; Equity ETFs (RQCA, RQUS, RQIN) – 0.30%.
• Strategic Rationale: Provides advisors with core, cost‑effective building blocks for client portfolios; leverages Russell’s proprietary multi‑factor and active fixed‑income expertise in an ETF wrapper.
• Trading Tickers (TSX): HALO, RBND, RQCA, RQUS, RQIN.
• Product Positioning:
• HALO targets downgraded investment‑grade bonds (high‑yield “fallen angels”) to enhance returns and diversify fixed‑income allocations.
• RBND offers a “core plus” solution combining active fixed‑income management with fallen‑angel exposure.
• The three equity ETFs translate existing mutual‑fund multi‑factor strategies (available since 2018) into ETF form for core equity allocation use.
• Quote: Jonathan Needham, President, Canada Advisor & Intermediary Solutions, highlighted the growing advisor demand for ETFs as portfolio building blocks and emphasized the cost‑effective choice these new products provide.

Notable Quotes

“Canadian advisors are increasingly turning to ETFs as core portfolio building blocks,” said Jonathan Needham, President, Canada Advisor & Intermediary Solutions at Russell Investments. “These new ETFs expand how investors can access our proprietary fixed income and equity capabilities, while reinforcing our commitment to providing cost‑effective choice across the core of client portfolios.”