Rob Arnott and his team are preparing to roll out their first ETF.

Robert D. "Rob" Arnott Research Affiliates, LLC Partner, Founding Chairman

This morning, Arnott, chairman and founder of Research Affiliates, LLC, revealed that next week the folks at Research Affiliates' RAFI Indices, LLC, in partnership with ETF Architect, LLC, will launch the Research Affiliates Deletions ETF (NIXT on the Nasdaq). RAFI Indices will serve as index provider and sponsor to the new fund, while Empowered Funds, LLC (dba EA Advisers and ETF Architect) will serve as investment advisor.

The planned inception date for NIXT is next Monday, September 9, and trading is expected to begin on Tuesday. The new, passively managed ETF comes with an expense ratio of nine basis points. (That bakes in a 30bps fee waiver, which is promised through September 3, 2025.)

NIXT will be a series of EA Series Trust and is designed to track the Research Affiliates Deletions Index, which tracks companies that have been removed from popular indices. Th new fund's PM team will include: Joshua Russell, senior portfolio manager at EA; and Richard Shaner, PM at EA.

"This unique strategy is a perfect fit for an ETF, as it provides structural, uncorrelated alpha executed in a simple, rules-based index format," Arnott states. "Our decision in sponsoring this ETF was driven by a desire to make the index deletions strategy as accessible as possible."

NIXT's other service providers will include: Practus LLP as counsel; ACA Foreside's Quasar Distributors, LLC as distributor; Solactive AG as index calculation agent; Tait, Weller & Baker LLP as independent accounting firm; U.S. Bancorp Fund Services, LLC (dba U.S. Bank Global Fund Services) as administrator, fund accountant, and transfer agent; and U.S. Bank National Association as custodian and securities lending agent. 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE