Burned once, Northern Trust re-enters ETF fray

Burned once, Northern Trust re-enters ETF fray
Custodian floats four exchange-traded funds; nixed all 17 country funds in 2009
SEP 14, 2011
Northern Trust Corp, the Chicago-based asset manager and custody bank, opened four exchange-traded funds, including two based on indexes built by fund research firm Morningstar Inc. The funds, which trade under the FlexShares brand name, will invest in natural resources, U.S. equities and Treasury inflation-protected securities, the company said today in a statement. The funds began trading Sept. 22, according to data compiled by Bloomberg. The new funds are Northern Trust's second venture into the ETF market. The firm previously ran 17 funds that tracked international, single-country indexes. With combined assets of $33 million, the funds were closed in February 2009 because of their “inability to attract significant market interest,” the company said in a statement at the time. Morningstar created the indexes used by the FlexShares Morningstar Global Upstream Natural Resources Index Fund and the U.S. Market Factor Tilt Index Fund, which will buy U.S. stocks with a “rules tilt” toward small companies and those seen as undervalued. Markit Group Ltd., which is based in London, built the indexes for the FlexShares iBoxx 3-Year Target Duration TIPS Index Fund and the 5-Year Target Duration TIPS Index Fund. Northern Trust managed $684 billion in client investments and oversaw $4.4 trillion in custody assets at the end of June. Chicago-based Morningstar tracks about 400,000 investment products and is known for its star ratings of mutual funds. U.S. ETFs have grown more than 13-fold since 2001 to $1.09 trillion at the end of July, according to data from the Investment Company Institute in Washington. ETFs typically track an index and, unlike mutual funds, trade like stocks throughout the day. --Bloomberg News--

Latest News

Americans can only afford to live to 83, survey finds
Americans can only afford to live to 83, survey finds

Retirement savings gap widens as clients underestimate nursing home costs by nearly half.

Advisor moves: Ohio RIA managing nearly $1B joins Osaic for succession planning
Advisor moves: Ohio RIA managing nearly $1B joins Osaic for succession planning

Aurora-based Beacon Financial Group selects broker-dealer’s Empowered Independence channel to secure its next chapter.

Turning Wealth into Retirement Income: Insights from Leading Financial Advisers
Turning Wealth into Retirement Income: Insights from Leading Financial Advisers

In this InvestmentNews TV panel, leading advisors discuss longevity risk, retirement income planning, withdrawal strategies, healthcare costs, and the mindset shifts retirees need to enjoy the wealth they've worked so hard to accumulate.

Advisor moves: Raymond James lands $700M Truist duo in Florida
Advisor moves: Raymond James lands $700M Truist duo in Florida

&Partners has also added a $357 million Texas family practice, while Janney recruits a $250 million Edward Jones advisor in Miami

Wirehouse moves: JPMorgan taps Merrill veteran for Southeast role as BofA beefs up OCIO team
Wirehouse moves: JPMorgan taps Merrill veteran for Southeast role as BofA beefs up OCIO team

Linda Patel will lead J.P. Morgan Advisors in Florida and Georgia as Bank of America adds nonprofit specialists in New York

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor