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Investors cautious on 'next generation' ETFs

Market participants are speculating on the future of 'next generation' exchange-traded fund market as one US firm closed all but one of its passive ETFs

Exchange-traded fund specialists have warned that the tough trading environment has made it difficult to launch “next generation” products, after Russell Investments, a specialist index provider, announced the closure of a range last week.

Russell Investments last Friday announced that it would shut all 25 of its "next generation" ETFs, which are funds that passively track specially formulated strategic indices. The company cited lack of interest in the products.

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