Columbia Research Enhanced Core ETF (RECS) Celebrates Five-Year Anniversary, $1B AUM Milestone

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The research-based product has attracted over $1 billion in client assets due to consistently strong performance

BOSTON, October 21, 2024--(BUSINESS WIRE)--Columbia Threadneedle Investments recently celebrated the five-year anniversary of its equity exchange-traded fund (ETF)—the Columbia Research Enhanced Core ETF (NYSE Arca: RECS). In the five years since its launch, RECS has attracted more than $1 billion in client assets due to consistently strong performance.

RECS has outperformed its performance benchmark, the Russell 1000 Index®, through its unique rules-based approach that emphasizes the application of proprietary investment research.1 This approach aims to optimize the ETF’s core equity exposure by eliminating stocks from the performance benchmark that are rated unfavorably by the Columbia Threadneedle quantitative research team. In doing so, this strategy addresses a key issue expressed by recently surveyed financial advisors -- nearly 9-in-10 advisors feel frustrated with not being able to remove underperforming stocks in their index investments.2

"Our goal when we launched RECS was to take a common-sense research approach to US large capitalization core investing and clearly that goal is still resonating today," said Marc Zeitoun, Head of North America Product and Business Intelligence. "Five years later, strong returns and positive investor response have encouraged us to further broaden our research-enhanced offering across other asset classes and to offer the strategy in other wrappers, such as retail SMAs."

Driven by strong performance, RECS boasts a 5-star Overall Morningstar Rating, with its returns falling within the top 10% of Morningstar’s U.S. Large Blend category for the five-year time period ending on September 30, 2024. Launched in September 2019, this ETF offers a cost-effective and tax-efficient solution to investors seeking core equity exposure and has earned a Morningstar Medalist Rating of Silver. RECS has a total expense ratio of 0.15%.3

RECS is managed by Christopher Lo, Head of Managed and Indexed Portfolio Solutions, Jason Wang, Head of Quantitative Research, and Henry Hom, Senior Portfolio Manager. The rules-based approach designed by the team uses Columbia Threadneedle’s proprietary quantitative investment models to evaluate and categorize companies in the Russell 1000 Index®. These models are designed to rate each company based on quality, value, and catalyst factors, including favorably rated securities while excluding those that do not meet the criteria.

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