They buy an ETF. This investment can be either actively managed, like the iShares Nasdaq Equal Weight (XWX) Market Neutral ETF (NYSE:NASDAQND), which invests in shares of companies that have negative or positive price movements, or passively managed, as with the iShares Russell 1000 Value ETF (NASDAQ:RTN), which invest in stocks with positive or negative annualized return.
The XWX ETF trades at a low P/E of 1.08. This is a good price for the investment.
Since December of last year, the iShares Russell 1000 Index Fund (NASDAQ:RTN) has been increasing its allocation to the Russell 1000 and Index ETFs. Since the index fund closed at a low of $27.55 on Oct. 30, 2014 (the day of the initial public offering of the iShares Russell 1000 Index Fund), it has had a higher share price and has held a larger stake, as you can see in the table below.
Index fund share price % return % growth Russell 1000 Index Fund $27.55 -6.40% iShares Russell 1000 Value Fund $10.45 -1.30%
The iShares Russell 1000 Index Fund is a great choice for someone who wants a relatively low-cost index fund to help improve their portfolio and achieve better returns.
What does an active management strategy look like?
The iShares Russell 1000 Index Fund manages its own portfolio by paying the price to buy and sell ETFs based on the amount of the index fund’s holdings. The iShares Russell 1000 Index Fund is not a passive investment. The fund’s managers can also decide to sell some of the stocks during times of selling pressure for the sake of getting the best market prices.
The iShares Russell 1000 Index Fund’s management fees are based on the number of shares owned at any given time. The fund has a minimum management fee of 0.1 percent, which is considerably less than the fees a number of other funds in the index category charge.
A quick look at what other funds are available
While there isn’t an exact industry standard for an active manager, the iShares Russell 1000 Index Fund (NASDAQ:RTN) is the most commonly recommended index fund.
The Russell 1000 Index Fund’s annual fees and expense ratio are similar to those found in a fund like the Vanguard MSCI All Country World ex-US Index ETF (NASDAQ:VOO) with its management
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