Northern Trust Asset Management plans to convert six mutual funds representing approximately $33 billion in assets into exchange-traded funds during the first quarter of 2027, expanding its ETF business as investors and financial advisors increasingly use the structure for portfolio construction.
The conversions, which have been approved by the funds’ board, span U.S. and international equities, municipal fixed income and dividend-oriented strategies. Northern Trust said the move is intended to provide shareholders with the potential tax efficiency, trading flexibility and portfolio transparency associated with ETFs while retaining the underlying investment strategies and management approach.
The largest planned conversion is the $19.3 billion Northern Stock Index Fund, currently traded under the ticker NOSIX. It will become the Northern Trust MSCI US 500 ETF under the ticker NTLC.
The $6.7 billion Northern International Equity Index Fund, or NOINX, is slated to become the Northern Trust MSCI EAFE ETF, trading as NEFA.
Northern Trust also plans to convert the $2.8 billion Northern Tax-Advantaged Ultra-Short Fixed Income Fund into the Northern Trust Tax-Advantaged Ultra-Short Income ETF, with the ticker TAXU.
Two additional index products are part of the initiative. The $2.3 billion Northern Mid Cap Index Fund will become the Northern Trust MSCI US 400 ETF, or NTMC, while the $1.6 billion Northern Small Cap Index Fund will transition to the Northern Trust MSCI US 2000 ETF under the ticker NTSC.
The sixth conversion involves the $316 million Northern Income Equity Fund, which will become the Northern Trust Equity Income ETF and trade under the ticker QDFI. Asset figures for all six funds are as of June 30, 2026.
Collectively, the conversions represent about $33 billion in mutual fund assets and would substantially increase Northern Trust Asset Management’s existing ETF footprint. The firm managed approximately $27 billion in ETF assets as of June 30 after more than 15 years in the market.
“Northern Trust ETFs are a key part of Northern Trust Asset Management’s growth strategy, enabling us to bring the full strength of our investment capabilities to more investors,” President Michael Hunstad said.
Hunstad said the planned conversions respond to growing client demand for ETFs while extending Northern Trust’s investment approach across a larger ETF platform.
The move reflects a broader shift in asset management toward ETF structures, which can offer investors intraday trading and greater portfolio transparency. ETFs can also provide tax advantages compared with traditional open-end mutual funds because of structural differences in how shares are created and redeemed, although individual tax outcomes depend on an investor’s circumstances.
“ETF adoption has continued to broaden as investors look for efficient, transparent and flexible ways to access high-quality investment strategies,” said Dave Abner, Northern Trust Asset Management’s global head of ETFs and funds.
Northern Trust is providing advance notice of the planned conversions so existing shareholders and distributors have time to evaluate the changes before implementation. The company expects the transactions to take place during the first quarter of 2027.
Northern Trust Asset Management offers active and passive strategies across equities, fixed income and real assets. The investment manager reported $1.6 trillion in assets under management as of June 30, 2026.
Its parent, Chicago-based Northern Trust Corp. (Nasdaq: NTRS), provides asset servicing, asset management, wealth management and banking services. Northern Trust reported $20 trillion in assets under custody or administration and $2 trillion in assets under management as of June 30.
The planned conversions would shift a sizable pool of established Northern Trust mutual fund assets into the ETF structure while more than doubling the asset base represented by its current ETF business.