The first mutual fund company to introduce long and short leveraged conventional mutual funds will now be offering long and short leveraged exchange traded funds (ETFs). "Rydex Investments…plans to introduce six "leveraged" exchange traded funds that will offer magnified or inverse-magnified returns of major stock benchmarks, with lower expense ratios than a popular family of ETFs from ProFunds Group." reports Ian Salisbury of the Wall Street Journal.

The six new ETFs produce twice the exposure to the long side and the short side of the S&P 500, the S&P MidCap 400 and the Russell 2000.

The appetite for leveraged ETFs is quite strong as ProShares has been able to attract more than $8 billion so far. Rydex and ProFunds have enjoyed a healthy competition in the long/short and leveraged area for years and its nice to see it continue in the ETF marketplace.

I serve on the Rydex fund board so I struggle to be 100% objective. However, competition in the mutual fund industry has served investors very well over the years. It has kept fund companies on their toes and I believe has helped to produce better returns for investors at reasonable fees.

Read the disclosure, as Tom Lydon is a board member of Rydex Investments.

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.