Rydex Investments is planning to add to its family of leveraged exchange traded funds (ETFs), this time with sectors. They’re scheduled to begin trading Thursday. The move is in hopes that it will put the provider in direct competition from its popular rival, ProFunds.

The proposed four ETFs will give investors the chance to magnify bets or bet against the energy, financials, health care and technology segments of the S&P 500, Ian Salisbury for Dow Jones Newswires reports.

Rydex’s new funds will be labeled "leveraged" or "leveraged inverse" giving them the ability to double the daily return of their benchmarks. A leveraged fund that tracked the S&P 500 would rise 2% on a day when
the index rose 1%. Leveraged inverse funds are a bearish bet, and would rise 2%
on a day the index fell 1%.

Rydex has offered leveraged mutual fund for some time, which have been met with success and popularity. Large traders use them to double-down or offset bets on the stock market with a sophisticated strategy. Let’s see if the new ETFs are as appreciated.

Read the disclaimer, as Tom Lydon is a board member of Rydex Funds.

Tags | Energy, Financial, Healthcare, S&P 500, Technology