The move comes as Russell has more than 30 ETFs in the registration process.
Russell Investments is set to enter the ETF business in a hurry, through its announcement on Wednesday that it will acquire Reno, Nevada-based registered investment advisor and ETF provider U.S. One, Inc.
Russell will replace U.S. One as the investment advisor to one fund called--drum roll, please--the One Fund ETF
In a news release, Russell stated that U.S. One's president, treasurer, and founder, Paul Hrabal, will work with Russell as a consultant to its ETF business. No terms of the deal were disclosed. The transaction is expected to close shortly after a mid-February shareholder vote to approve Russell becoming ONEF's investment advisor.
"Russell continues to build the infrastructure for viable and comprehensive ETF offerings," said Jim Polisson, managing director of Russell's global ETF business, in a statement. "The acquisition of U.S. One provides Russell with a platform to play a unique role in this dynamic and fast moving growth arena. By acquiring U.S. One, we can more immediately leverage our proprietary research to extend the options available to investors and include ETFs in our suite of products that we deliver to the marketplace."
According to a proxy statement filed on Jan. 13, Hrabal owned approximately 50.6% of ONEF's outstanding shares, as of Jan. 7. That looks like just enough voting power to push the approval of the change in control through with ease.
Robert Goldsborough is an ETF analyst with Morningstar.
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