Rydex has added another equal weight exchange traded fund (ETF) to its increasingly formidable lineup of funds that have the strategy.

The Rydex MSCI All Country World Equal Weight ETF (NYSEArca: EWAC) tracks the equal-weighted MSCI All County World Index, which tracks more than 2,400 stocks from 24 developed and 21 emerging market countries, reports Olivier Ludwig for Index Universe.

The equal weighting strategy will reduce the exposure to large-cap corporations and give more diversification, as opposed to the traditional market-cap weighted method.

The timing for such strategies is great, considering that we’re emerging from a recession. Such recovery periods tend to put small-caps in favor. The evidence can be seen in the performance of Rydex S&P Equal Weight (NYSEArca: RSP), which handily outperformed the SPDRs (NYSEArca: SPY) in 2010.

Meanwhile, Russell Investments has inked a deal to purchase ETF provider U.S. One, the name behind the One Fund (NYSEArca: ONEF). The details weren’t disclosed, and the deal is expected to close sometime in the current quarter.

Read the disclaimer; Tom Lydon is a board member of Rydex|SGI.

Tisha Guerrero contributed to this category.

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