Rydex|SGI Offers More Options With Equal Weight ETFs
November 30th, 2010 at 1:00pm by Tom Lydon
Rydex|SGI, the first company to provide equal-weight exchange traded funds (ETFs), will soon launch six new equal-weight ETFs to help provide core allocations for investor portfolios.
Equal weight strategies can provide a more consistent long-term risk adjusted performance as compared to cap-weighted strategies. With a reduced concentration in the largest stocks, equal weight ETFs can also provide more diversification. Furthermore, equal-weight ETFs rebalance once per quarter to enhance risk control by reducing concentration risk. [Why Equal Weight ETFs Are Beating the Market.]
Rydex S&P Equal Weight ETF (NYSEArca: RSP), the first equal-weight ETF, launched in 2003. With six new ETFs in the lineup, Rydex|SGI will now offer sixteen equal weight ETFs. The partnership with Russell and MSCI provides more opportunities for investors looking to expand diversification with equal weight funds.
- Rydex Russell 1000 Equal Weight ETF (EWRI)
- Rydex Russell 2000 Equal Weight ETF (EWRS)
- Rydex Russell MidCap Equal Weight ETF (EWRM)
- Rydex MSCI EAFE Equal Weight ETF (EWEF)
- Rydex MSCI Emerging Markets Equal Weight ETF (EWEM)
- Rydex MSCI ACWI Equal Weight ETF (EWAC)
The ETF marketplace continues to grow, with assets up 33% from a year ago and over 1,000 ETFs and exchange traded notes (ETNs) available in the U.S. At the end of October, ETF assets hit a record $940 billion. Additionally, advisors are increasing their holdings in ETFs due to their transparent nature, low fees, tax efficiency and liquidity.
For more information on equal-weight ETFs, visit our equal-weight ETFs category.
Read the disclaimer; Tom Lydon is a board member of Rydex|SGI.
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.